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Faraday (NASDAQ:FFIE) stock surged on Monday preceding its upcoming annual shareholder meeting, set to take place on July 31. At this pivotal event, FFIE investors will weigh in on crucial decisions relevant to the future of the electric vehicle (EV) startup.
As shareholders gather, they will deliberate on six significant proposals:
- Election of five directors to serve until the next shareholder meeting in 2025.
- Ratification of Macias Gini & O’Connell as Faraday’s independent registered public accounting firm through the year’s end.
- Approval of the company’s proposed share issuance.
- Endorsement of a reverse stock split, with the exact ratio still undisclosed and ranging between 1-for-2 and 1-for-40.
- Inclusion of additional shares of Class A common stock under the 2021 Stock Incentive Plan.
- Approval of convening additional annual meetings as required.
FFIE Stock Struggles Persist
While Monday saw a spike, FFIE stock’s trajectory remains a cautionary tale. The EV startup has plummeted by 34% this year, trading at a mere 40 cents per share. This figure falls below Nasdaq’s $1 minimum bid price, prompting the company’s move towards a reverse stock split. Such an action aims to artificially inflate Faraday’s share price to prevent delisting.
Despite being in breach of Nasdaq’s share price policy, the company recently received conditional approval for continued listing. Faraday must file its first-quarter Form 10-Q by July 31 and restore compliance with the minimum bid price by August 31, with “compliance” denoting a share price of at least $1 for a minimum of 10 consecutive trading sessions.
Faraday Future Global CEO Matthias Aydt expressed gratitude to the Nasdaq Hearings Panel for the decision, marking a positive stride for FF in its quest to regain full compliance. Aydt affirmed the company’s commitment to fulfilling additional requirements in the weeks ahead.