The smart glass manufacturer View Inc. is in danger of being de-listed from the Nasdaq by the end of this month if it doesn’t file a quarterly report it missed a deadline. View anticipated that it would disclose a cash balance of $201 million by the end of the first quarter with no substantial debt, but it didn’t formally file the report, according to a company statement.
View’s stock price dropped below $1 on May 11th after it announced there could be substantial doubt about its ability to stay in business. The firm says it lacks enough cash to meet its operating costs and obligations for at least a year after releasing its financial statements. “While the company will look to raise capital, there can be no assurance that the necessary financing will be available or will be available on terms acceptable to the company,” View said.
The company’s stock price has fallen from a high of about $13 per share in January 2021, as many PropTech firms that went public via a SPAC have seen their stock prices nosedive. SPACs are mostly priced without regard to business fundamentals and investor demand, enabling firms to avoid an arduous and costly IPO process while still going public.
View is another recent example of why the SPAC craze from 2020 and 2021 could be slowing down. View is also facing a lawsuit from the Shareholders Foundation, a portfolio settlement-claim service. The Foundation alleges View didn’t tell investors it hadn’t made provisions for warranty costs related to its products. View and other PropTech firms’ difficulties going public could mean greater caution in the SPAC market for the foreseeable future and more real estate technology companies staying private a bit longer.
