Faraday Future Intelligent Electric Inc. (Nasdaq: FFIE) (“FF”,
“Faraday Future”, or “Company”), a California-based technology
company specializing in artificial intelligence electric vehicles
(AIEV), announced that it has secured approximately $30 million in
cash financing commitments. The funds will be used to accelerate
the Company’s growth and the development of Faraday X (FX), FF’s
strategy of launching affordable high performance AIEV equipped
vehicles with cutting edge technology, filling the U.S. market gap
in this segment, and for general corporate purposes.
Targeting the mainstream EV market in the U.S., FF is expected
to have its first two FX prototype mules arrive in Los Angeles
later this month, with product development and testing scheduled to
begin at FF’s manufacturing facility in Hanford, CA. As part of
their delivery journey, the two prototype mules will stop in Las
Vegas from January 5 to 7, 2025, where the Company will provide
updates on its FX strategy.
The $30 million financing commitment includes a pre-funded $7.5
million, which was received in the fourth quarter of this year, and
$22.5 million in new cash commitments (the “Financing”), structured
in the form of unsecured 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 $1.16 and $1.392 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 on December 23, 2024.
“The new funding lays a solid foundation for both FF and its new
brand as the Company approaches the end of 2024 and enters the new
year,” said Matthias Aydt, Global CEO of FF “I am optimistic about
the opportunities that this new funding will bring, including
supporting the ongoing production of our FF 91 2.0 and the growth
of the FX brand,” Aydt explained.
“We are pleased to have supported FF in successfully completing
this round of financing,” said Jerry Wang, President of FF Global
Partners and Head of Corporate Development, FFIE (Consultant), “We
are enthusiastic about the promising opportunities ahead for the FX
brand, and we firmly believe in FF's ability to execute its
strategy effectively and deliver significant value in the
process.”
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 one or more registration
statements 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
market amidst the global trend of EVs. Luxury is just one of the
key factors reflecting FF’s achievements in reshaping the EV
industry. The company is dedicated to establishing an
ever-evolving, interactive in-car software and operating system
powered by artificial intelligence and user-generated data,
optimizing the experience for each individual within an ecosystem
of worldwide users who are also contributors to the innovative FF
model.
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 Faraday X (FX) strategy and plans for the FX brand,
the delivery of two prototype mules, 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 timing for the
two prototype mules to clear U.S. customs; 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20241222966710/en/
Investors (English): ir@faradayfuture.com Investors (Chinese):
cn-ir@faradayfuture.com Media: john.schilling@ff.com
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