Fisker Inc (NYSE:FSR), the embattled electric vehicle maker, is set to be delisted from the New York Stock Exchange after its shares slumped to “abnormally low” price levels.
On Monday, trading of the stock was suspended after it told investors a rescue deal had fallen through.
Discussions had been ongoing with a big automaker regarding a potential takeover, but the potential bidder is now believed to have walked away from the negotiation table.
“Following such termination, the company continues to evaluate strategic alternatives,” Fisker said.
The EV startup says it is now considering options such as “in or out-of-court restructurings”, capital market transactions, repurchases and equity issuances.
“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,” the Californian group said.
Fisker also breached a financing commitment with an investor, warning that it wouldn’t be able to meet a closing condition and would therefore need to enter discussions over a new waiver or financing of new terms.
Earlier this month, the group' s shares sunk by 40% after reports revealed it had hired advisors to prepare a bankruptcy filing.
A day later, shares shot back up after it said it was in talks to develop a “strategic partnership with a large automaker” and raise additional capital.