SoftBank-backed glass manufacturer View, Inc. doubts whether the company will be able to continue, it told investors on Wednesday.
View revealed in a statement its cash balance dipped to $201 million at the end of the first quarter of 2022, down from $507 million a year earlier.
Its cash burn comes as the company works to stave off a potential de-listing from Nasdaq, the stock exchange it joined just 14 months ago. View has been asked by Nasdaq to submit revised financial statements for the last three years by the end of May.
The Milpitas, California-headquartered company's dwindling cash levels have now sunk below its 2021 operating costs, which View said on Wednesday ranged between $260 million and $270 million
In a filing to the Securities and Exchange Commission Wednesday, View said it anticipates disclosing "substantial doubt" about the company's future as it does not currently have "adequate financial resources to fund its forecasted operating costs" or meet its liabilities for "at least 12 months" from when it expects to log previous years' financial statements.
A spokesperson for Nasdaq declined to comment on View's future on the exchange. A spokesperson for View did not respond to a request for comment.
An internal audit — completed last November — found View had stated inaccuracies in previous financial reports, including understating liabilities for defective windows, Insider has previously reported. As a result, View said it would file revised numbers for 2019, 2020, 2021, and the first quarter of 2022.
Since the completion of the audit, View has been granted numerous extensions by Nasdaq to submit revised financials. Last month, View was given time to file its revised numbers by the end of May, after Nasdaq took steps to delist View for failing to file financial statements on time.
The embattled glass maker also said it's looking to raise more cash, but said there was "no assurance that the necessary financing" would be available at "acceptable" terms. View's search for fresh capital comes as global markets tumble on the back of soaring inflation, rising interest rates, and the conflict in Ukraine.
View underscores the risky nature of the SPAC market
View, which manufactures eco-friendly "smart glass" for commercial building windows, raised roughly $815 million by merging with a so-called Special Purpose Acquisition Vehicle (SPAC) sponsored by financial services firm Cantor Fitzgerald on March 8 last year. SPACs are shell companies that raise money from investors and list on the stock market. Their sponsors find a company to merge with and take public.
Before going public, View raised almost $1.5 billion from a host of investors — including $1.1 billion from its biggest shareholder SoftBank in November 2018.
View's share price has dipped to $0.54, down 86% this year, and well below its $10 debut price last March.
View's decision to go public came at an opportune time for the SPAC market.
In the first 10 weeks of 2021, SPACs raised more cash than 2020, but that momentum stuttered in the second half of last year as the SEC started scrutinizing the so-called blank-check vehicles. Banks were asked to disclose how they manage SPAC risks and how they valued target companies. Private investments in public equity, or PIPE financing, for SPACs also dried up as investors turned selective on where they allocated their capital.
View's issues as a public company highlight the inherent risks in SPACs, which at its peak last year proved the ideal vehicle to take young companies public. Unlike a traditional IPO, SPACs' target companies can provide investors with forward-looking projects to jazz up their valuations, market experts told Insider last December.
Greater regulatory scrutiny, however, alongside sliding company valuations have led banks, including Citi and Goldman Sachs, to dial back their exposure to a space that just 12 months ago they championed.
Are you a current or former View employee? You can reach Hayley Cuccinello at hcuccinello@insider.com and on Twitter. Her Signal number is 1 917-740-5340. Aaron Weinman can be reached at aweinman@insider.com or at 929-335-1560 via secure messaging services, Signal and Whatsapp. Aaron is also on Twitter and LinkedIn.
