Fisker's stock tumbles further as talks with carmaker fall through

By Emily Bary

Shares are halted for pending news shortly after Monday's open

Fisker Inc.'s stock is taking another blow Monday after the company disclosed that a potential industry deal fell through.

The electric-vehicle company had been in discussions with a big carmaker about a potential transaction, but it received notice from that company that it has terminated the negotiations.

"Following such termination, the company continues to evaluate strategic alternatives," Fisker (FSR) said in a Monday morning filing with the Securities and Exchange Commission.

Shares of Fisker were off 29% shortly after Monday's open, and they were then halted for pending news. They have tumbled about 85% over the past month, in part on concerns about a potential bankruptcy. The Wall Street Journal reported earlier in March that the company was working with advisers on a possible bankruptcy filing, though Fisker said then that it often worked with advisers to develop strategies.

At the time of that statement, Fisker mentioned the possible "strategic partnership with a large automaker" as one focus area.

See also: Fisker breaks silence about potential bankruptcy. Here's what it had to say.

In Monday's filing, Fisker mentioned other "strategic alternatives" that it is considering. Those include "in- or out-of-court restructurings," capital-markets transactions, repurchases and potential equity issuances, among other things.

Fisker also noted Monday that it won't be able to meet a closing condition to the financing commitment and term sheet that the company entered into with an investor on March 18. The company plans to discuss with the investor the possibility of a new waiver or financing on different terms.

"These alternatives involve significant uncertainties, and there can be no assurance that any of these discussions will be successful or that any funds will be available to the company under the commitment," Fisker said.

-Emily Bary

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03-25-24 1041ET

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