Written by Cláudio Afonso | LinkedIn | X
Electric vehicle startup Faraday Future announced Thursday it will execute the recently approved reverse stock split at the maximum ratio of 1 for 40. FF shares closed 12% lower at $0.167 per share as the company continues to struggle with a high cash burn rate and weak demand for its luxurious EV mode, the FF91 2.0.
On the last day of July, shareholders approved all six proposals at the company’s Annual Meeting including the reverse stock split.
The reverse stock split is set to take effect on Friday at 5:00 p.m. ET, enabling the company to meet Nasdaq’s minimum trading requirement of $1 per share.
As of the time of writing, the stock is trading 17% lower at $0.139 per share during the pre-market trading session.
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Late Wednesday, the company also reported its second-quarter earnings, 48 hours after having delivered its second vehicle of the year.
As it struggles to secure funding and convince investors about its long-term future, the company founded by YT Jia delivered the FF91 2.0 luxurious EV to a new customer.
Faraday Future reported a revenue of $2,000 as no vehicles were sold to customers in that period.
Faraday Future has recently announced that it has entered into a Waiver Agreement with key investors to alleviate its cash payment obligations related to convertible notes, a new SEC filing revealed.
The agreement is part of the company’s ongoing strategy to manage liquidity while encouraging note conversions into common stock.
The Waiver Agreement involves holders of both secured and unsecured convertible notes issued under two separate Securities Purchase Agreements (SPAs) from August 2022 and May 2023.
Never Miss an Update on Faraday Future
Written by Cláudio Afonso | LinkedIn | X
