Faraday Future has announced the completion of financing agreements worth $135 million in convertible secured notes. $80 million of the funds will be available within 10 business days, subject to conditions being met, with the rest available within 5 business days after the satisfaction or waiver of further conditions, including approval from the company’s stockholders and an effective registration statement.
The financing, along with the $33.4 million received since December 15th, 2022, means Faraday Future has secured the necessary funds for the start of production of the FF 91 Futurist. The company is set to begin production at the end of March 2023 with deliveries starting in April.
Faraday Future will also hold a special stockholders meeting on February 28th, 2023, to consider a proposal to increase the number of authorized shares of Faraday Future Class A common stock. This would clear the way for further financing to support FF 91 Futurist deliveries and the company’s other goals. The company’s major stockholder, FF Top Holdings LLC, has agreed to vote in favor of the proposal.
The financing agreements also include a modification to a provision in the terms of the warrants in the original FF secured financing agreements, removing a full ratchet anti-dilution provision, helping to avoid a potential dilutive issuance of shares. The company has agreed to exchange $41 million of convertible secured notes for the cancellation of a majority of the outstanding warrants held by its existing secured notes investors.
The company appreciates the support of its investors and sees this round of financing as a key step towards achieving its short-term goal of starting production of the FF 91 Futurist and delivering it to the market. Faraday Future is grateful for the continued support of its investors, particularly FF Global Partners LLC.
See also:Faraday Future targets to start production of FF 91 Futurist in March 2023
“Securing $135.0 million in funding commitments is critical and imperative for Faraday Future’s sprint to FF 91 Futurist’s SOP. The availability of these additional funding commitments provides confidence that FF can reach the SOP milestone in March 2023. We will deliver the FF 91 Futurist with high quality and high product power as soon as possible after receipt of the funds contemplated by these financings,” said Xuefeng (XF) Chen, Global CEO of Faraday Future.
FF recently celebrated a milestone as its stock price closed above $1.00 per share on February 3rd, 2023, marking a growth of over 300% in just 40 trading days. The company owes this success to the support of its global suppliers, who have consistently believed in FF’s revolutionary product and its position as the ultimate tech luxury brand. Their unwavering support has been instrumental in FF’s mission to transform the traditional automotive industry and create a future mobility ecosystem.
FF is also grateful to its stockholders, including both retail and institutional investors, who have shown trust in the company’s new governance structure, board of directors, and management. Their support lays the foundation for unlocking FF’s true potential and maximizing its value.
See also: Faraday Future signs deal to raise up to $350 mln to launch FF 91 futurist EV
“I am glad to see that Faraday Future has obtained commitments for this key round of financing with the cooperation and support of FFGP. At the same time, FFGP also assisted Faraday Future in solving the crucial warrant issue and helping ensure the maximization of interests of all stakeholders with the timely SOP of the FF 91 Futurist,” said a spokesperson from FFGP.
Faraday Future has made strides in testing and validating its FF 91 Futurist through the recent implementation of its Product and Technology Generation 2.0 program (PT Gen 2.0). This upgrade, which involves significant improvements in both the vehicle and I.A.I (Internet, Autonomous Driving, and Intelligence) systems, is composed of 26 major upgrades to key components such as powertrain, battery, charging, chassis, interior, computing, sensing, communication, and user interaction.
With this latest round of financing, Faraday Future is now nearing completion of its 7th milestone, the SOP (Start of Production), having already announced the completion of its 6th milestone, the completion of construction and equipment installation in vehicle assembly areas.
As a luxury electric vehicle that competes with Ferrari, Maybach, Rolls Royce, and Bentley, the FF 91 Futurist offers a unique and intelligent driving experience. It boasts a powerful 1,050 horsepower, a range of 381 miles on a single charge, a lightning-fast 0-60 mph time of 2.27 seconds, a rear intelligent internet system, and a revolutionary user experience that provides a connected, intelligent, and luxurious third living space.
