Written by Cláudio Afonso | LinkedIn | X
The U.S. based EV maker Faraday Future announced on Thursday that shareholders have approved all the six proposals at the company’s Annual meeting held on Wednesday.
Among the proposals, the company was aiming to get approval for the reverse stock split that will allow its stock price to comply with the Nasdaq minimum bid requirement of $1.00.
Last week, the company founded by YT Jia warned that if the reverse stock split was not approved, it could lead to delisting from Nasdaq making it “impossible” the capital raise in the near future.
In a new video, CEO Matthias Aydt said in a video, “I’m very happy to report that all proposals were approved this morning. Now while there were obviously many things that needed to be voted on, including the reelection of our Directors and the ratification of our accounting firm, I want to share with you the meaning of some of the key results”.
After publishing its 10Q form on Wednesday, this Nasdaq listing requirement is now the only one compliance deadline the L.A based startup has.
“(…) The approval of the reverse stock split proposal will help the Company meet the minimum bid price requirement necessary to maintain listing status on the Nasdaq Capital Market. We believe that it’s important to help in our future fundraising efforts.” Aydt stated.
The chief executive added that the approval of the proposals “can help accelerate our entry into the UAE” market.
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“And lastly, we believe that the approved proposals could help support the development of a beneficial China-US automotive industry bridge strategy and could help accelerate our entry into the UAE, both of which we have mentioned in the past,” he concluded.
On Wednesday, few hours before holding a Annual General Meeting, Faraday Future published its first quarter financial results reporting a revenue of $2,000.
In an interview with the YouTuber “The Omar Gosh Vlogs,” Faraday’s founder YT Jia revealed recently that deliveries will continue on the last day of July, today.
In the report of the financial results, the company said it will “keep working to optimize operations to support sustainability” including “ongoing evaluations of current cost reductions and spending efficiency”.
Faraday will also seek approval to increase the number of authorized shares of Class A and Class B common stock from 463,312,500 to 4,169,812,500, and the total number of authorized shares of common and preferred stock from 473,312,500 to 4,179,812,500.
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Written by Cláudio Afonso | LinkedIn | X
