It’s deja vu all over again for Sonder, which is facing a delisting of its common stock from the Nasdaq exchange.
Nasdaq sent a letter to the short-term rental company at the start of the month, warning the stock exchange would be delisting Sonder shares on Oct. 10, according to an SEC filing. Sonder confirmed receipt of the letter in a press release on Monday.
The proptech company fell out of compliance after failing to promptly file reports for the first and second quarter of the year. Sonder quickly appealed the letter’s determination, temporarily pausing the suspension of its delisting; a panel is set to make a decision by Oct. 18.
Sonder did not immediately respond to a request for comment. The stock closed at $4.51 per share on Monday, down more than 97 percent since the company went public, but up 39 percent year-to-date.
Sonder previously faced delisting from Nasdaq 18 months ago. That threat came as a result of the share price dipping below $1 for 30 consecutive business days. Six months ago, a delisting threat also emerged because of a failure to file reports, according to Skift.
The San Francisco-based company’s troubles are no secret. It said in recent weeks it is negotiating with landlords and seeking partners to keep itself operating as lease obligations besiege the unprofitable firm.
Sonder’s portfolio spans 10 countries and more than 40 cities. In the last 11 months, Sonder has reduced rent on or abandoned roughly 4,300 units across 105 buildings, which could improve cash flow by $40 million annually, according to a company report.
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For the two years, Sonder has exclusively focused on “capital light” deals, tasking landlords with paying for initial capital improvements.
In August, Sonder raised $146 million in additional liquidity, including $83 million from existing bondholders. It also partnered with Marriott to make 9,000 units available on the latter’s platforms by the end of the year, the first time Marriott has partnered with a short-term rental company in this way; Marriott is set to provide Sonder $15 million by March 2025.