Skift Take

Sonder's second notice of potential delisting is for a different reason than the first notice a year earlier. Neither, though, is a good look for the struggling company.

Sonder disclosed in a financial filing Friday that it received a Nasdaq notice that it is not complying with the stock exchange’s listing rules and faces a potential delisting because the company hasn’t filed its annual 10-K report for 2023.

Sonder received the notice April 2, and said it has 60 days to submit a plan to regain compliance, and noted that Nasdaq, at its discretion, could extend the deadline 180 days, or until September 30, 2024.

“The Notice has no immediate effect on the listing or trading of the Company’s common stock or publicly traded warrants on the Nasdaq Global Select Market,” Sonder stated.

Companies generally are required to file their 10-Ks within 60 days after the end of the fiscal year — in other words, by February 29, 2024 at the latest.

The Sonder Delay

Sonder, a short-term rental company that also operates hotels, disclosed in mid-March that it may need to restate its 2022 and 2023 financials because of accounting errors it discovered. That’s why it hasn’t filed its 10-K for 2023.

Sonder stated Friday that it intended to get back into Nasdaq’s good graces. “The Company intends to submit a compliance plan to Nasdaq and take the necessary steps to regain compliance with Nasdaq’s listing rules as soon as practicable,” the company said.

Deja Vu All Over Again

Sonder, which went public through a SPAC merger in early 2022, received a Nasdaq notice in April 2023 that it could be delisted because the share price of SOND dipped below $1 for 30 consecutive trading days. The company avoided delisting in September when it conducted a 1-20 reverse stock split.

Sonder’s share’s closed Friday at $3.87 per share.

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Tags: delisting, dwell, nasdaq, sonder, spacs, stock splits, vacation rentals

Photo credit: Sonder CEO Francis Davidson on stage with Skift Director of Research Seth Borko at the Skift Short-Term Rental Summit on June 7, 2023. Source: Skift Ryan Bourque

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