Faraday Future (NASDAQ:FFIE) stock continues to slide today despite the promising news that shareholders have approved Faraday’s proposed stock split, which will allow FFIE to remain listed on the Nasdaq.
On Wednesday, July 31, Matthia Aydt, the Chief Executive of Faraday Future, released a video confirming the results of the recent shareholder meeting, which includes the proposed stock split and several other proposals. From the video’s transcript:
“Today I want to share with you the results of our annual meeting of stockholders (or AGM as we call it). We’ve been asking for our stockholders’ support for this AGM and to vote in favor of the six proposals that were on the table — which were critical to the future of the company. I’m very happy to report that all proposals were approved this morning.”
FFIE Stock Sinks as Investors Approve All Six Proposals
Of the proposals on the table this time around, the reverse stock split is easily the most important. Indeed, FFIE stock is currently trading for just 30 cents per share, well below the Nasdaq’s $1 minimum bid price. Without a reverse stock split, the terms of which are still undecided, it would mean being delisted from the index altogether.
That said, the other proposals are also important. They include approval of the company’s China-US automotive industry bridge strategy, the reelection of company directors, ratification of its accounting firm, and continued production and delivery of its FF 91 2.0 EV.
“Everyone here at FF wants to express our sincere gratitude for your ongoing support and to thank you for your confidence and your vote at this recent Annual Meeting of Stockholders. I look forward to sharing more updates and successes in the near future,” Aydt concluded.
Unfortunately, shareholders feel a bit less optimistic over the news. FFIE stock is on track to lose more than 10% of its value today, adding to its 48% losses year-to-date. It sits with its EV stock companions in the dumps this year.
It’s unclear what Faraday’s new lease on life will mean for the company. Regardless, investors will be eager to see the company capitalize on its new plans going forward.
On the date of publication, Shrey Dua 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.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
