- Secured Funding: Faraday Future has obtained $30 million
in financing commitments from the Middle East, the United States,
and Asia.
- Milestone: The involvement of Master Investment, an
investment firm of Sheikh Abdulla Al Qassimi from Ras Al Khaimah,
UAE, a Middle Eastern investor highlights Faraday Future's
successful regional expansion and strengthens its global business
position.
Faraday Future Intelligent Electric Inc. (Nasdaq: FFIE) (“FF”,
“Faraday Future”, or “Company”), a California-based global shared
intelligent electric mobility ecosystem company, announced today
that it has secured $30 million in financing commitments from
investors in the Middle East, the United States, and Asia. The
participation from a Middle East investor, Master Investment, an
investment firm of Sheikh Abdulla Al Qassimi from Ras Al Khaimah,
the UAE represents a significant milestone, underscoring the
Company’s successful expansion and development efforts in the
region. This financing not only validates Faraday Future’s progress
in enhancing its international presence but also strategically
positions the Company for growth and new business
opportunities.
The new financing commitment includes a previously funded $7.50
million and $22.50 million of new investment (the “Financing”) in
the form of convertible notes (“Convertible Notes”) and warrants to
acquire additional shares of the Company’s common stock
(“Warrants”). The conversion price for the Convertible Notes and
exercise price for the Warrants, are $5.24 and $6.29 per share,
respectively, subject to adjustment as set forth therein. The
shares of common stock underlying the Convertible Notes and
Warrants issued in the Financing are currently unregistered,
subject to trading restrictions, and not immediately tradable. The
Financing is subject to customary closing conditions. For
additional information regarding the material terms relating to the
Financing, please see the Company’s Form 8-K to be filed with the
SEC by September 6, 2024.
In April 2024, the Company announced the establishment of a
Middle Eastern sales entity in Dubai, an important milestone for
the Company. With FF’s entry into the Middle East, it now operates
a “third pole” geographic strategy expanding its reach beyond the
U.S. and China.
FF’s Global Automotive Industry Bridge Strategy and second brand
approach will help the Company to leverage AI and software
technologies for its users across multiple market segments,
potentially accelerating FF’s mass-market entry while maintaining
its ultra-luxury offering. FF remains focused on executing its
global strategy and bringing its unique vision of intelligent
electric mobility to a broader audience. FF expects to integrate
the strengths of the U.S. automotive industry and markets with
those of Chinese original equipment manufacturers (OEMs) and parts
suppliers focusing on the $20,000 to $80,000 price segment.
“I am delighted to participate in this round of financing on
behalf of Ras Al Khaimah and the UAE. As FF’s strategic partner, I
am also excited to bring FF's upcoming business expansion to Ras Al
Khaimah and Middle East. I believe this will bring unprecedented
growth opportunities for FF. This will also provide significant
momentum for FF's strategic development, particularly in offering
strong support for a rapid global development,” said Sheikh Abdulla
Al Qassimi.
“I am extremely encouraged for the possibilities that this new
funding will bring to FF, including supporting our ongoing FF 91
2.0 production and enhanced product and software updates,” said
Matthias Aydt, Global CEO of FF. “FF is a unique and differentiated
electric vehicle company with significant growth prospects,
especially with the addition of our Global Automotive Industry
Bridge Strategy and second brand vehicle approach that are
currently in the works. I also want to thank FF Global Partners who
made meaningful contributions to this financing as a Company
consultant.”
“I’m truly thankful for our investor support. Moving forward, FF
will continue to focus on the delivery and execution of the FF 91
2.0 production, the Global Automotive Industry Bridge Strategy, and
establishing a footprint in the UAE and Middle East. We believe
these are amazing and unique opportunities for FF to pursue, which
have the potential to create meaningful value,” said Jerry Wang,
Head of Corporate Development, FFIE (Consultant).
The Convertible Notes, along with the Warrants, were offered and
sold in a transaction exempt from the registration requirements of
the Securities Act of 1933, as amended (the “Securities Act”),
pursuant to the exemption for transactions by an issuer not
involving any public offering under Section 4(a)(2) of the
Securities Act and Rule 506 of Regulation D of the Securities Act
and in reliance on similar exemptions under applicable state laws.
Accordingly, the Convertible Notes, Warrants and underlying shares
of common stock issuable upon conversion of the Convertible Notes
and exercise of the Warrants may not be offered or sold in the
United States except pursuant to an effective registration
statement or an applicable exemption from the registration
requirements of the Securities Act and such applicable state
securities laws.
The Company has agreed to file a registration statement with the
Securities and Exchange Commission registering the resale of the
shares of common stock issuable upon conversion of the Convertible
Notes and exercise of the Warrants issued in connection with the
Financing.
This press release does not constitute an offer to sell or the
solicitation of an offer to buy the convertible notes, nor shall it
constitute an offer, solicitation or sale in any jurisdiction in
which such offer, solicitation or sale is unlawful prior to
registration or qualification under the securities laws of any such
jurisdiction.
ABOUT FARADAY FUTURE
Faraday Future is the pioneer of the Ultimate AI TechLuxury
ultra spire market in the intelligent EV era, and the disruptor of
the traditional ultra-luxury car civilization epitomized by Ferrari
and Maybach. FF is not just an EV Company, but also a
software-driven intelligent internet Company. Ultimately FF aims to
become a User Company by offering a shared intelligent mobility
ecosystem. FF remains dedicated to advancing electric vehicle
technology to meet the evolving needs and preferences of users
worldwide, driven by a pursuit of intelligent and AI-driven
mobility.
FORWARD LOOKING STATEMENTS
This press release includes “forward looking statements” within
the meaning of the safe harbor provisions of the United States
Private Securities Litigation Reform Act of 1995. When used in this
press release, the words “estimates,” “projected,” “expects,”
“anticipates,” “forecasts,” “plans,” “intends,” “believes,”
“seeks,” “may,” “will,” “should,” “future,” “propose” and
variations of these words or similar expressions (or the negative
versions of such words or expressions) are intended to identify
forward-looking statements. These forward-looking statements, which
include statements regarding the closing of the Convertible Notes
financing, the China-U.S. Automotive Bridge Strategy, entry into
the Middle East, future FF 91 production, a second brand
integrating the Company’s AI and software into a second brand, and
anticipated use of funds from the Convertible Notes financing, are
not guarantees of future performance, conditions or results, and
involve a number of known and unknown risks, uncertainties,
assumptions and other important factors, many of which are outside
the Company’s control, that could cause actual results or outcomes
to differ materially from those discussed in the forward-looking
statements.
Important factors, among others, that may affect actual results
or outcomes include, among others: that the closing of the
Financing could be delayed or not occur at all; the Company’s
ability to continue as a going concern and improve its liquidity
and financial position; the Company’s ability to pay its
outstanding obligations; the Company's ability to remediate its
material weaknesses in internal control over financial reporting
and the risks related to the restatement of previously issued
consolidated financial statements; the Company’s limited operating
history and the significant barriers to growth it faces; the
Company’s history of losses and expectation of continued losses;
the success of the Company’s payroll expense reduction plan; the
Company’s ability to execute on its plans to develop and market its
vehicles and the timing of these development programs; the
Company’s estimates of the size of the markets for its vehicles and
cost to bring those vehicles to market; the rate and degree of
market acceptance of the Company’s vehicles; the Company’s ability
to cover future warrant claims; the success of other competing
manufacturers; the performance and security of the Company’s
vehicles; current and potential litigation involving the Company;
the Company’s ability to receive funds from, satisfy the conditions
precedent of and close on the various financings described
elsewhere by the Company; the result of future financing efforts,
the failure of any of which could result in the Company seeking
protection under the Bankruptcy Code; the Company’s indebtedness;
the Company’s ability to cover future warranty claims; the
Company’s ability to use its “at-the-market” program; insurance
coverage; general economic and market conditions impacting demand
for the Company’s products; potential negative impacts of a reverse
stock split; potential cost, headcount and salary reduction actions
may not be sufficient or may not achieve their expected results;
circumstances outside of the Company's control, such as natural
disasters, climate change, health epidemics and pandemics,
terrorist attacks, and civil unrest; risks related to the Company's
operations in China; the success of the Company's remedial measures
taken in response to the Special Committee findings; the Company’s
dependence on its suppliers and contract manufacturer; the
Company's ability to develop and protect its technologies; the
Company's ability to protect against cybersecurity risks; and the
ability of the Company to attract and retain employees, any adverse
developments in existing legal proceedings or the initiation of new
legal proceedings, and volatility of the Company’s stock price. You
should carefully consider the foregoing factors and the other risks
and uncertainties described in the “Risk Factors” section of the
Company’s Form 10-K filed with the SEC on May 28, 2024, as amended
on May 30, 2024, and June 24, 2024, as updated by the “Risk
Factors” section of the Company’s first quarter 2024 Form 10-Q
filed with the SEC on July 30, 2024, and other documents filed by
the Company from time to time with the SEC.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240905337261/en/
Investors (English): ir@faradayfuture.com
Investors (Chinese): cn-ir@faradayfuture.com
Media: john.schilling@ff.com
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