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Fikser stock trading was suspended by the NYSE on Monday partly due to its abnormally low price. Fisker stock closed at 9 cents a share.
Patrick T. FALLON/AFP via Getty Images
Monday was a tough day for Fisker shareholders.
To start things off, the electric vehicle startup said talks with a large auto maker broke down. Investors hoped talks would result in more capital. The news sent shares tumbling 28%. They closed at 9 cents apiece.
Later in the day, Fisker announced that the New York Stock Exchange, or NYSE, had immediately suspended trading in Fisker stock. Shares no longer met listing requirements. Fisker said the NYSE cited its abnormally low stock price.
Fisker didn’t immediately respond to a request for comment about any plans for relisting or trading.
Shares can still trade. They just won’t trade on an exchange. They will trade in the over-the-counter, or OTC, market. That’s the term for where stocks—typically from small companies that don’t meet listing requirements from major exchanges—trade.
Most brokerage accounts can trade OTC shares. It may require checking with the broker and enabling a new feature.
The delisting also triggered a requirement to repurchase some of Fisker’s convertible notes due in 2026 and caused a default on notes due in 2025.
Either issue could trigger the company to restructure under Chapter 11 bankruptcy protection. Fisker declined to comment on its restricting plans Monday. It didn’t immediately respond to a request for comment about restructuring again on Tuesday.
Shares aren’t being quoted in premarket trading Tuesday.
Coming into Tuesday’s trading, shares are down almost 99% over the past 12 months, leaving Fisker with a market capitalization of about $50 million.
Write to Al Root at allen.root@dowjones.com
