Faraday Future targeted by Nasdaq after not filing the 2021 Annual Report with the SEC

Written by Cláudio Afonso | info@claudio-afonso.com

Faraday Future announced that received a letter from Nasdaq on April 4 indicating that, due to not having filed its Annual report yet, the company does not comply with Nasdaq Listing Rule 5250(c)(1) for continued listing. Nasdaq Listing Rule 5250(c)(1), in pertinent part, requires the Company to timely file all required periodic reports with the Securities and Exchange Commission. Faraday Future shares are trading 3.50% lower on Pre-Market this Friday.

On March 31, 2022, the Company filed a Form 12b-25 Notification of Late Filing (the “Form 12b-25”) with the Securities and Exchange Commission (the “SEC”) and issued a press release announcing, among other things, that the Company was unable to file its Form 10-K within the prescribed time period. The Company indicated that it needed additional time to complete the additional investigative work and remedial work as recommended by a special committee of independent Company directors (the “Special Committee”) and to finalize the Company’s financial statements and related disclosures for both the Quarterly Report on Form 10-Q for the period ended September 30, 2021 (“Q3 Form 10-Q”) and Form 10-K.

As previously disclosed, Nasdaq granted an exception giving the Company a new deadline of May 6, 2022 to file the Q3 Form 10-Q and the Form 10-K. As a result of this additional delinquency, the Company must submit an update to its original plan to regain compliance by April 19, 2022. The Company intends to submit a timely update to its original plan.

As previously disclosed, Nasdaq has advised the Company that a failure to file the Q3 Form 10-Q and Form 10-K on or prior to May 6, 2022 would result in a notice of delisting of the Company’s securities. The Company would be entitled to appeal that determination to a Nasdaq Hearings Panel and to request a further stay pending the appeal. The Company is working diligently to finalize and file the Q3 Form 10-Q and the Form 10-K as soon as practicable and currently expects to file both on or prior to the May 6, 2022 deadline, and to file its amended Registration Statement on Form S-1 (File No. 333-258993) (the “Form S-1/A”) promptly following the filing of the Form 10-K.

Faraday Future announced on Thursday that will partner with Meta System to become the supplier of on-board power management module products. FF 91 EV and the upcoming FF 81 vehicles will be equipped with Meta System’s onboard battery charger. The system will feature 15.2 kW AC charging capability.

Earlier this week, Faraday Future announced the launch of its “Born in California, Global DNA” brand campaign showcasing the company’s global partners for its flagship vehicle, FF 91. The FF 91 is designed and built in California and is “on track” to be launched in Q3 2022.

The California-based company recently announced that the Nasdaq Stock Market has accepted its plan to regain compliance with Nasdaq Listing Rule 5250(c)(1), which permits the continued listing of FF common stock and warrants on the Nasdaq Global Select Market. On February 23rd, the company unveiled the first production-intent FF 91 ultra-luxury EV remaining remains on schedule for the FF 91 start of production in Q3 2022.

Written by Cláudio Afonso | info@claudio-afonso.com