Well, it looks like Fisker’s (OTCMKTS:FSRN) run on the New York Stock Exchange is officially over. In a recent filing, the NYSE notified the U.S. Securities and Exchange Commission (SEC) of its plans to remove Fisker’s entire class of Class A common stock from the exchange, effective as of April 22. This was due to Fisker’s “abnormally low” stock price.
On March 25, the NYSE notified Fisker of its intent to delist its shares. Fisker had the right to appeal the decision within 10 business days, although the electric vehicle (EV) company chose not to do so.
Today, Fisker stock trades over-the-counter (OTC) for around 2 cents. The company has lost about 98% of its market capitalization since the beginning of the year.
Fisker to Be Delisted From NYSE on April 22
Fisker is still up and running at the moment, but many have speculated that a bankruptcy could be around the corner. In its preliminary earnings, the company warned that it would have substantial doubt about its ability to continue as a going concern once it filed its 2023 Form 10-K, an audited filing summarizing its annual results. The 10-K is still yet to be filed.
Fisker also noted that it would enact a 15% headcount reduction as part of its transition to a dealer-partner model and in order to cut costs.
On March 18, Fisker announced that an existing investor had provided it with a financing commitment of up to $150 million. However, Fisker’s negotiations with a large automaker fell through, leading to a closing condition of the commitment not being able to be satisfied.
“Furthermore, to the extent Fisker’s current resources are insufficient to satisfy its requirements over the next 12 months, the company will need to seek additional equity or debt financing, and there can be no assurance that Fisker will be successful in these efforts,” the company said in its preliminary results.
With the agreement scrapped, Fisker was placed in a very precarious position. In late March, the company slashed the prices of its Ocean EV trims by as much as 39% in an attempt to increase its liquidity and empty out its inventory.
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On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
