Shares of electric vehicle maker Fisker (NYSE:FSR) closed about 28% lower yesterday amid multiple setbacks for the company. The NYSE is commencing delisting proceedings against Fisker, citing the “abnormally low” price levels in the stock. The exchange also suspended trading in Fisker shares. However, a potential reverse stock split may be in the works for Fisker.
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The decline in Fisker’s shares to just $0.09 yesterday underscores looming challenges for the company. Following earlier cautions from Fisker about potential cash flow risks, recent events accentuate mounting uncertainties.
Earlier this month discussions were raised in hopes for Fisker and its investors regarding a potential agreement with a major automaker. In spite of this, the recent disclosure of unsuccessful negotiations marks a significant turning point. This announcement has led to a thorough evaluation of alternative strategic pathways for the company’s future.
Does Fisker Stock have a Chance?
Fisker still has a chance as the company holds the right to dispute NYSE’s decision via a review process. Though Fisker faces significant challenges, the company still retains hope as it prepares to host a special shareholder meeting on April 24. This meeting includes a proposal for a potential reverse stock split, aiming to elevate Fisker’s share price and comply with NYSE’s standards.
Following a significant FSR stock price decrease of nearly 99.5% in the past three years, Fisker anticipates its shares will transition to trading on the OTC Pink platform (or another OTC market) due to actions taken by the NYSE.
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