Faraday Future Announces Comprehensive Governance Resolution with Major Shareholders and New Financing
Comprehensive Governance Resolution with FF Top
- Faraday Future and its largest shareholder have reached an agreement regarding their governance dispute
- FF Top will dismiss its lawsuit against the company and its board of directors
Sue Swensonwill step down from her role as Executive Chairperson of the company and Chairperson of the Board upon the company receiving $13.5 millionin net financing proceeds
Sue Swensonand Mr. Brian Krolickiwill step down from the Board upon the company obtaining $85 millionin incremental financing commitments and $35 millionin net proceeds therefrom
Adam He, a senior executive with extensive public company experience, has been appointed as a new independent board member
New Financing Commitment
New financing provides up to
$100 millionin committed funding
Active discussions with
U.S.and international investors for potential additional funding
- Actions underway to further reduce costs
The Company announced a binding governance agreement with
“The resolution of governance and related issues with our largest shareholder is a major accomplishment and an important step forward for Faraday Future and all our stakeholders. We can now focus our effort on building the FF 91. We appreciate all parties’ efforts in reaching this agreement,” said Dr.
“FF Top is glad that a resolution has been reached. We look forward to this opportunity for a new start and brighter future for FFIE, and to all parties performing their obligations under the governance agreement, to achieve the best interests of Faraday Future and all shareholders,” said a spokesperson from FF Top.
Concurrently, the Company announced the execution of two definitive agreements for new financing commitment of up to
Under the first financing agreement, Faraday Future will receive up to
$40 millionin near-term funding in the form of convertible secured notes and warrant exercise payments, subject to certain conditions precedent.
Under a separate second financing agreement, the Company will receive up to an additional
$60 millionin near-term funding from Senyun International Ltd., a Daguan International Ltd.wholly owned investment entity, in the form of convertible secured notes, subject to certain conditions precedent. The terms of such financing are substantially similar to the terms of the previously committed notes but are subject to satisfactory completion of due diligence by the Company in its sole discretion on the investor and a specified funding schedule with milestones.
The Company is in ongoing discussions with potential financing sources for additional capital required to fund operations through the end of 2022 and beyond. As part of ongoing efforts to conserve cash and reduce expenses, the Company recently implemented headcount reductions and other expense reduction and payment delay measures. Further efforts, including additional headcount reductions, may be undertaken in response to the Company’s financial condition and market conditions. Additional information can be found in our Current Report on Form 8-K filed earlier today.
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ABOUT FARADAY FUTURE
Faraday Future is a class defining luxury electric vehicle company. The Company has pioneered numerous innovations relating to its products, technology, business model, and user ecosystem since inception in 2014. Faraday Future aims to perpetually improve the way people move by creating a forward-thinking mobility ecosystem that integrates clean energy, AI, the Internet and new usership models. Faraday Future’s first flagship product is the FF 91 Futurist.
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