Trading in shares of electric vehicle startup Fisker will stop right away, the New York Stock market said Monday. The company is also being taken off the market.
Because the price of Fisker’s stock is “abnormally low,” the exchange said Monday that it is “no longer suitable for listing.” The decision comes a month after the NYSE told Fisker that its stock price had been selling below $1 for 30 days, which was against the rules of the exchange.
When Fisker filed on Monday afternoon, it said that it expects its stock to be moved to an over-the-counter market like OTC Pink. The company can still look over the NYSE’s decision. It also said that being delisted has made it necessary to pay back two loans that it can’t afford right now, which could have a “material adverse effect” on the business.
The ban ends a rough day for Fisker, during which shares dropped more than 28% before trading stopped. Fisker said earlier Monday that it had lost a possible deal with a big automaker, which was said to be Nissan. This has put at risk a recently announced plan to get emergency funds as well.
The company didn’t say why the automaker ended the talks, which was a key requirement for the $150 million convertible note that was revealed last week. In the filing, Fisker said it would ask the unnamed investor to remove the closing condition.
Fisker has been having more and more problems for months, such as customer complaints, lawsuits, and government investigations. According to a January story by TechCrunch, the struggling EV startup has had a hard time selling its Ocean SUV so far. It has not met its own sales goals. After giving up on direct sales, it turned to dealerships to help boost sales. Inside papers show that Fisker has sometimes had a hard time fixing quality issues that the company has had.
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In February, Fisker fired about 200 people, or 15% of its staff. Last week, the company said it had only $121 million in the bank. The business has stopped making things and told investors that it won’t last a year without getting more money.
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