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Faraday Future Intelligent Electric Inc. (NASDAQ: FFIE) (“Faraday Future” or “the Company”), a California-based global shared smart electric mobility ecosystem company, today announced a comprehensive resolution to its dispute over governance with FF Top and the execution of definitive agreements for new funding. The Company continues to have active discussions with backers to fund the production and delivery of the FF 91.
The Company announced a binding governance agreement with FF Top Holding LLC (“FF Top”), which resolves a series of governance issues. The governance agreement, which is further described in our current report on Form 8-K filed earlier today, includes an agreement allowing FF Top to immediately withdraw its lawsuit against FFIE’s board of directors, changes in the composition and size of FFIE’s board of directors, and certain amendments to Faraday Future’s shareholders’ agreement with FF Top. Adam He was appointed as the new independent member of the Board of Directors and a member of the Nominating and Corporate Governance Committee and the Audit Committee.
“Resolving the governance and related issues with our major shareholder is a major achievement and an important step forward for Faraday Future and all of our stakeholders. We can now focus our efforts on building FF 91. We appreciate the efforts of all parties to reach this agreement,” said Dr. Carsten Breitfeld, Global CEO of Faraday Future.
“FF Top is pleased that a resolution has been reached. We look forward to this opportunity for a fresh start and a brighter future for FFIE, and for all parties fulfilling their obligations under the Governance Agreement. , in order to achieve the best interests of Faraday Future and all shareholders,” said a spokesperson for FF Top.
At the same time, the Company announced the signing of two definitive agreements for a new financing commitment of up to $100 million in total. Detailed terms can be found in our current report on Form 8-K filed earlier today.
- Under the first funding agreement, Faraday Future will receive up to $40 million in short-term funding in the form of convertible secured notes and warrant exercise payments, subject to certain conditions precedent.
- Under a second separate financing agreement, the Company will receive up to an additional $60 million in short-term financing from Senyun International Ltd., an investment entity wholly owned by Daguan International Ltd., under the convertible secured notes, subject to certain conditions. previous. The terms of such financing are substantially similar to the terms of previously committed obligations, but are subject to the satisfactory completion of due diligence by the Company in its sole discretion on the investor and to a specified financing schedule with milestones.
The Company is in discussions with potential funding sources for the additional capital needed to fund operations through the end of 2022 and beyond. As part of the ongoing efforts to conserve cash and reduce expenses, the Company has recently implemented workforce reductions and other measures to reduce expenses and late payments. Other efforts, including additional workforce 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.
Mr. Adam He, the newly appointed Independent Board Member, is the Chief Financial Officer of Wanda America Investment Group. He previously served as an auditor at Ernst & Young and is a CPA in China and New York, and holds a bachelor’s and master’s of science degree in taxation from the Central University of Finance and Economics in Beijing and a Master of Science in Accounting from Seton Hall University in New Jersey. Additional details regarding Mr. He’s background can be found in our current report on Form 8-K filed earlier today.
Sidley Austin LLP acted as counsel to Faraday Future, Blank Rome LLP and Kelley Drye & Warren LLP acted as counsel to the agent in connection with the convertible note facility, Olshan Frome Wolosky LLP acted as counsel to Senyun International Ltd . and Davis Polk & Wardwell LLP acted as legal counsel to the company’s board of directors. Cadwalader, Wickersham & Taft LLP acted as legal counsel to FF Top and Baker McKenzie acted as legal counsel to Season Smart Limited.
Users can pre-order an FF 91 via the FF Intelligent app or via our website (in English): https://www.ff.com/us/preorder/ or (Chinese): https://www.ff.com/cn/preorder/
Download the new FF smart app (English): https://apps.apple.com/us/app/id1454187098 Where https://play.google.com/store/apps/details?id=com.faradayfuture.online(Chinese): http://appdownload.ff.com