Faraday Future said there is no real risk of a stock delisting as long as it resumes regular on-time SEC filings in a timely manner.
(Image credit: Faraday Future)
Faraday Future is in close contact with Nasdaq and is confident it will return to regular status under Nasdaq rules in the relatively near future, the California-based electric car maker said.
The company received a warning letter from Nasdaq about noncompliance after announcing it would delay reporting third-quarter earnings, which some media reports later said meant Nasdaq was asking Faraday Future to delist.
In a statement released today, the company called the reports an obvious misinterpretation, saying there is no real risk of delisting the stock as long as it resumes its normal on-time SEC filings in a timely manner.
Nasdaq's warning letter relates only to the company's delay in filing its third-quarter financial results, which is a normal procedure, Faraday Future said.
Within 60 days of receiving the Nasdaq letter, Faraday Future will submit a compliance plan that will help it get a grace period of up to 180 days from the initial deadline for filing the 10-Q to submit the 10-Q or any other delinquent filings, the company said.
Once Faraday Future files its compliance plan with Nasdaq in a timely manner and within the time period specified in the plan, it will revert to its regular status under Nasdaq rules, the statement said.
Faraday Future is working to file its third-quarter Form 10-Q as soon as possible and expects to return to normal status under Nasdaq rules soon, it said, adding that it expects to be on track for mass production and high-quality delivery of the FF 91 in July 2022.
The company said on November 16 that it notified the SEC that it was unable to file its Form 10-Q for the fiscal quarter ended September 30, 2021, within the required timeframe.
That's because the company's board of directors formed a special committee of independent directors to review allegations of inaccurate disclosures, including claims made in a report issued by an investor with a history of seeking to depress the stock price of public companies for his own benefit.
The company did not explicitly mention it, but it was supposedly referring to short-seller J Capital Research, which early last month stated outright that "Move Over Lordstown: There's a New EV Scam in Town."
On November 23, the company's website said in a statement that it had received a letter from Nasdaq dated November 17 saying the company did not comply with Nasdaq listing rules.
The company said the letter from Nasdaq was expected because it was postponing the filing of its third-quarter financial report.
"We postponed our earnings release because we were asked by our board of directors to conduct a self-examination in response to the shorting, and the results will definitely be released on time," the company's source was quoted as saying by Securities Daily on Sunday.
The source did not explain further about "on time," but appeared to be referring to the delayed schedule.
Faraday Future says it's 'definitely' on track to report earnings 'on time'