Chinese-Swedish electric vehicle (EV) specialist Polestar may be delisted from the Nasdaq stock exchange after failing to meet the security regulator’s deadlines to submit its financial reports multiple times.
Polestar announced it had been notified by the Nasdaq that it has 60 days to submit a plan of compliance after failing to file both its full-year 2023 and first-quarter 2024 financial reports in a timely manner.
Its 2023 financial report was originally due to be filed at the end of February, but this deadline was extended to the end of April. Neither of these deadlines were met.
UPDATE, 21/05/2024 – Our initial reporting quoted an incorrect current Polestar share price. We have updated with the Class A share price as of closing on May 20, 2024.
If Nasdaq accepts Polestar’s compliance plan, the EV maker will then be granted up to 180 days from that point to regain compliance and avoid being delisted from the stock exchange.
“Polestar is working to file its Annual Report on Form 20-F as soon as practicable and to report its preliminary unaudited financial and operational results for the first quarter of 2024 soon thereafter,” the carmaker said in a media statement.
Since going public on the Nasdaq on May 21, 2021, Polestar’s Class A share price reached a high of US$15.33 on November 16 that year.
However, at close on May 20, 2024, the Class A share price was sitting at just US$1.13.
It’s the latest potential setback for the Chinese-Swedish brand, which has endured a tumultuous 2024.
In January, Polestar said it would retrench 450 staff, about 15 per cent of its workforce, in a bid to reduce external spending and edge closer to breaking even.
In February, former parent company Volvo offloaded a 30 per cent stake in Polestar to its own parent company, Chinese car giant Geely, which it valued at 9.5 billion Swedish krona (A$1.4 billion).
While Polestar secured US$950 million (A$1.46 billion) in funding from a syndicate of 12 global banks in late February, the investment didn’t reach the US$1.3 billion (A$2bn) in external funding Polestar previously said it would need to break even in 2025.
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