Fisker Shares To Be Delisted Due To Low Price — Update
By Ben Glickman
Struggling electric-vehicle maker Fisker's shares will be delisted due to their low price levels, which may cause the company to default on some of its debt.
The New York Stock Exchange said late Monday that Fisker's shares, which were halted in the regular session down 28% at 9 cents apiece, had been immediately suspended. The exchange has decided to commence delisting procedures for Fisker due to its "abnormally low" price.
The company said in a regulatory filing after the news that the delisting of its Class A common shares would cause an event of default on its convertible notes due 2025. Fisker said the holders of the notes could accelerate their due date and make them immediately payable in full.
Delisting of shares would also trigger a requirement to offer to buy back certain notes due 2026.
Fisker said it does not have the cash to pay back its 2025 and 2026 notes.
The company said it expects its shares to be quoted on the OTC Pink, or another market operated by OTC Markets Group. Fisker said in the filing that listing on the OTC would result in a less liquid market for existing and potential shareholders, which may further cause the shares to sink in value.
Fisker has the right to review the delisting decision by NYSE.
The company said Monday morning that its talks with a large automaker over a potential deal had collapsed. Fisker won't be able to meet a closing condition of a $150 million financing commitment it previously entered.
The company is continuing to weigh strategic alternatives.
Write to Ben Glickman at ben.glickman@wsj.com
(END) Dow Jones Newswires
March 25, 2024 18:03 ET (22:03 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.-
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