Fisker deal talks with big automaker collapse, NYSE to delist stock

investing.com:

By Akash Sriram and Zaheer Kachwala

(Reuters) -Cash-strapped Fisker's talks with a large automaker for a potential deal have collapsed and the New York Stock Exchange plans to delist the electric-vehicle startup's shares due to «abnormally low» price levels.

The NYSE has also suspended trading in the stock, it said on Monday, hours after trading was halted pending an announcement. Fisker's shares were trading at $0.09 before the halt and closed at $0.13 on Friday.

The termination of talks with the unnamed automaker has led Fisker to search for strategic options including in- or out-of-court restructurings and capital markets transactions, the startup said on Monday.

The news comes a week after the company paused electric-vehicle production, fanning growing uncertainty around its future.

«I can't put it if it is next week or next year, but it is inevitable,» Thomas Hayes, Chairman at hedge fund Great Hill Capital, said on the growing chances of Fisker likely to file for bankruptcy protection.

A potential bankruptcy will make Fisker the second failed auto startup from Henrik Fisker, who started his career as an automotive designer and was also a Tesla (NASDAQ:TSLA) consultant.

His previous attempt, Fisker Automotive (NYSE:FSR), fell victim to the 2008 financial crisis and filed for bankruptcy in 2013 despite fetching $192 million in loans from the Department of Energy.

Fisker's latest venture was founded in 2016 and went public through a merger with a blank-check firm for a valuation of $2.9 billion.

But a slew of supply chain issues, production delays and fundraising hurdles sent its market valuation crashing to less than $100 million.

Reuters had earlier this month reported that Japanese automaker Nissan (OTC:NSANY)