Fisker Receives Continued Listing Standard Notice From NYSE
- None.
- None.
Insights
The notification received by Fisker Inc. from the NYSE regarding non-compliance with minimum share price requirements is a significant indicator of potential financial distress or investor sentiment issues. A sustained share price below $1 can suggest a lack of confidence from the market, possibly due to underperformance, market conditions, or operational challenges. Analysts and investors typically monitor such developments closely, as they may precede more severe actions like delisting if not remedied.
From a market research perspective, the company's consideration of a reverse stock split is a common strategic move to boost share price by reducing the number of shares outstanding, thus increasing the price per share. However, this does not inherently change the company's market capitalization or address the underlying issues that might have caused the share price decline. The effectiveness of this strategy will depend on the company's ability to concurrently improve its financial health and market perception.
Receiving a notice of non-compliance from the NYSE is a critical financial event for Fisker Inc., which can influence both short-term trading activity and long-term investor relations. Short-term implications may include increased volatility in share price as investors react to the news. In the long-term, the company's ability to raise capital could be affected if the share price does not recover, as low share prices can limit the attractiveness to new investors and potentially lead to increased borrowing costs.
It is also important to consider that while the notice does not immediately affect the company's listing status, failure to regain compliance within the prescribed timeframe could lead to delisting, which would have more severe consequences for the company's ability to access equity markets and for existing shareholders.
The legal implications of a notice from the NYSE for non-compliance with their continued listing standards require careful navigation. Fisker Inc. must adhere to the corrective measures stipulated by the NYSE, such as maintaining a minimum average closing share price, to avoid delisting. The company's intent to notify the NYSE of its plans to regain compliance is a mandatory step in this process.
Should the company pursue a reverse stock split as one of its strategies to regain compliance, it will need stockholder approval, typically obtained during an annual meeting. This process involves legal considerations around shareholder communication, voting procedures and adherence to both NYSE rules and federal securities laws. The company's proactive approach to considering all available options to address the issue reflects a legal strategy aimed at maintaining its listing status while minimizing disruption to its operations and shareholder interests.
- The Company’s common stock continues to trade on the NYSE under symbol “FSR”
The NYSE notice does not result in the immediate delisting of the Company’s common stock from the NYSE.
In accordance with applicable NYSE rules, the Company intends to notify the NYSE within 10 business days of its intent to regain compliance with Rule 802.01C and return to compliance with the applicable NYSE continued listing standards.
The Company can regain compliance at any time within a six-month cure period following its receipt of the NYSE notice if, on the last trading day of any calendar month during such cure period, the Company has both: (i) a closing share price of at least
The Company intends to remain listed on the NYSE and is considering all available options to regain compliance with the NYSE’s continued listing standards, including, but not limited to, a reverse stock split, subject to stockholder approval no later than at the Company’s next annual meeting of stockholders.
The NYSE notice has no immediate impact on the listing of the Company’s common stock, which will continue to be listed and traded on the NYSE during such cure period, subject to the Company’s compliance with other NYSE continued listing standards.
Furthermore, the Notice is not anticipated to impact the ongoing business operations of the Company or its reporting requirements with the
About Fisker Inc.
Download the revolutionary new Fisker mobile app from the App Store or Google Play .
Forward-Looking Statements
This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, express or implied forward-looking statements relating to Fisker’s ability to maintain the listing of its common stock on the NYSE and any potential plans of Fisker to cure the stock price deficiency, including by action that would require a stockholder vote. You are cautioned that such statements are not guarantees of future performance and that Fisker’s actual results may differ materially from those set forth in the forward-looking statements. All of these forward-looking statements are subject to risks and uncertainties that may change at any time. Factors that could cause Fisker’s actual expectations to differ materially from these forward-looking statements include Fisker’s ability to regain compliance with the continued listing standards of the NYSE within the applicable cure period, Fisker’s ability to continue to comply with applicable listing standards of the NYSE and the other factors under the heading “Risk Factors” set forth in the Company’s Annual Report on Form 10-K, as supplemented by the Company’s quarterly reports on Form 10-Q. Such filings are available on our website or at www.sec.gov. You should not place undue reliance on these forward-looking statements, which are made only as of the date hereof. Fisker undertakes no obligation to publicly update or revise forward-looking statements to reflect subsequent developments, events, or circumstances, except as may be required under applicable securities laws.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240216260335/en/
European Media:
Press.europe@fiskerinc.com
US Media
Fisker@GODRIVEN360.com
Customer service:
Support@fiskerinc.com
Fisker Inc. Communications:
Matthew DeBord
VP, Communications
mdebord@fiskerinc.com
Franziska Queling
Regional Head of Public Relations,
fqueling@fiskerinc.com
Investor Relations:
Eric Goldstein
Head of Investor Relations
egoldstein@fiskerinc.com
Source: Fisker Inc.
FAQ
Why did Fisker receive a notice from the NYSE?
What is the consequence of non-compliance with NYSE listing standards?
How long is the cure period for Fisker to regain compliance?
What options is Fisker considering to regain compliance?
Will the NYSE notice impact Fisker's business operations?
