Core Scientific, Inc. current report, 24 January 2023

Full document

Business Context and Reporting Period

Core Scientific, Inc. filed a Form 8-K concerning its Nasdaq delisting proceedings following the Company’s and certain affiliates’ Chapter 11 bankruptcy filings. The report identifies January 24, 2023 as the date of the earliest reported event and was signed January 26, 2023.

Key Financial Metrics

This filing does not provide revenue, profit, cash flow, margin, debt, liquidity, or other operating or financial metrics.

Material Changes Versus Prior Period

  • The Company withdrew its appeal of Nasdaq’s delisting determination.
  • Nasdaq’s staff had determined that the Company’s common stock would be delisted in connection with the Chapter 11 filings and applicable Nasdaq rules.
  • Following withdrawal of the appeal, Nasdaq was expected to proceed with filing Form 25-NSE, resulting in delisting from Nasdaq.
  • The filing states that trading would continue on the OTC Bulletin Board under the symbol “CORZ.” Elsewhere, it states that the common stock and warrants began trading exclusively on the OTC Pink Marketplace on January 3, 2023 under “CORZQ” and “CRZWQ,” respectively.

Guidance, Outlook, Risks, and Unusual Items

  • The delisting is a significant trading and liquidity event for the Company’s securities.
  • The Chapter 11 proceedings and resulting delisting may materially affect investor access, market liquidity, valuation, and the Company’s ability to access capital markets.
  • No financial guidance or specific restructuring outcome is provided in this filing.
  • The filing text contains potentially inconsistent references to the post-delisting trading venue and ticker symbols; the definitive venue and symbols should be verified.

Investor Verification Checklist

  • Confirm the effective date of Nasdaq’s Form 25-NSE filing and the date Nasdaq trading ceased.
  • Verify the current trading venue and ticker symbols for the common stock and warrants.
  • Review the Company’s Chapter 11 docket and subsequent filings for restructuring milestones, creditor recoveries, and any plan of reorganization.
  • Assess the impact of delisting and bankruptcy proceedings on security liquidity and valuation.