NYSE plans to withdraw Fisker shares due to the failure of the deal with the automaker

Fisker's attempt to strike a deal with a major automaker failed, leading to the New York Stock Exchange's decision to delist the startup's shares due to abnormally low price levels.

Flashback

Fisker is a company specialising in the production of electric cars. It is known for its approach to creating stylish and environmentally friendly cars, such as the Fisker Ocean, which competes in the midsize electric car market. The company was founded in 2016 and quickly gained popularity in the world of electric vehicles.

Here's What We Know

The NYSE has also suspended trading in Fisker shares. Fisker shares were trading at $0.09 and closed at $0.13.

The termination of negotiations with the secretive automaker has forced Fisker to look for strategic alternatives. This includes internal or out-of-court restructuring and capital market transactions.

If the shares are delisted, the company will be forced to offer a redemption of its convertible bonds due in 2026, which could lead to a default event in 2025.

The news comes a week after the company suspended production of electric vehicles, increasing uncertainty about its future.

Source: Reuters