SoftBank-backed glass maker View, Inc. is another step closer to being booted off Nasdaq.
The Nasdaq Listing Qualifications Department has initiated a process to delist View from the exchange, which only welcomed the glass manufacturer less than 12 months ago when it raised $815 million through a de-SPAC transaction with financial services firm Cantor Fitzgerald last March.
Headquartered in Milpitas, California, View manufactures eco-friendly "smart glass" for commercial building windows. Japanese investor SoftBank is its largest shareholder after it invested $1.1 billion in the company in 2018.
View's been in hot water in recent months after it received two deficiency notices from Nasdaq for failing to file quarterly reports throughout 2021. Insider reported in December that the company was at risk of delisting due to its missing filings.
The company stated in January that it expected to restate financial reports for 2019, 2020, and 2021 during this quarter. But in a press release published Tuesday regarding the delisting process, View noted there could be "no assurance" it will file revised reports before the end of March.
Nasdaq's latest move to potentially de-list View comes after the company failed to file missing financial statements by February 14, a deadline set by the exchange.
The trading of View shares will not immediately be suspended. In its press release, View said it intends to appeal Nasdaq's process to delist the company, known as a Staff Delisting Determination, and has requested a hearing before the exchange to present its plan to fall back into compliance with Nasdaq's requirements.
The request automatically grants View a stay of 15 days, and hearings are generally scheduled for 30 to 45 days after the date of request, at which time View's shares will continue to trade on Nasdaq, according to the release.
Insider has spoken with 24 former View employees, most of whom had not exercised their stock options with the company.
People familiar with View's operations have previously told Insider that the company has been trying to slow down its cash burn, including delaying the installation of new production machinery critical to its growth.
Spokespersons for View and Nasdaq were not immediately available to respond to Insider's questions.
If View isn't granted an appeal by Nasdaq, it would have to trade over-the-counter
View acknowledged it could be delisted if its appeal is denied or the company fails to regain compliance with listing standards.
View said on January 4 that it expected to file revised financial reports for 2019 and 2020, as well as the first, second, and third quarters of 2021, a full-year statement for 2021, and for the first quarter of 2022 before the end of this quarter.
But with a potential hearing with Nasdaq as soon as next month, the restated financials may not be revealed until after March.
Nasdaq has been known to give companies a grace period, but only if they are cooperative with the exchange, a capital markets lawyer at a US firm who requested anonymity to speak freely told Insider in December.
If View is delisted, it would not be able to get listed by another exchange due to the missing financial statements and would have to trade over-the-counter, the lawyer added.
Nasdaq's news comes after an audit and cash burn woes
View's woes come three months after an internal audit found it had stated inaccuracies in previous financial reports and that it had understated liabilities for defective windows.
As a result of the audit, View revised its estimated liabilities from $22 million up to a range of $40 million to $58 million for the period ending March 2021. View logged $32.3 million in revenue at the end of 2020, and has not stated its revenue for 2021.
Investors have also said the company misled them about internal control failures, and accused it of failing to tell them that it had not properly accrued warranty costs for its smart glass, Bloomberg reported this month.
View has raised almost $1.5 billion from investors, including SoftBank's $1.1 billion injection in 2018.
Its shares closed at $2.34 on Tuesday, less than a third of its value when it went public last March, giving it a market cap of approximately $536 million.
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.
