LOS ANGELES – Faraday Future Intelligent Electric Inc. has announced the conclusion of several financing agreements and a modification to the terms of warrants in the original FF secured financing agreements. The agreements include $135.0 million in convertible secured notes, with $80.0 million to be funded within 10 business days, subject to conditions. The remaining amount will be funded within 5 business days after the satisfaction of conditions, including stockholder approval and an effective registration statement.
The financing agreements, along with $33.4 million received since December 15th, 2022, mean that Faraday Future has received sufficient financing commitments for the funds required for the start of production (SOP) of the FF 91 Futurist. The company expects to begin production at the end of March 2023, with deliveries starting before the end of April, assuming investor funds are received on the expected timeline.
Faraday Future will also hold a special stockholders meeting on February 28th, 2023, to consider increasing the authorized shares of Faraday Future Class A common stock. If approved, the proposal will clear the path for additional financing and support the company’s strategic goals. Faraday Future stockholder approval is a condition for completing a portion of the funding amount.
The financing agreements also include a modification to the full ratchet anti-dilution provision in the original FF secured financing agreements. The provision has been removed, avoiding a potential dilutive issuance of shares. The company has agreed to issue $41.0 million of convertible secured notes to its existing secured notes investors in exchange for the cancellation of most of their outstanding warrants.
Faraday Future’s CEO, Xuefeng (XF) Chen, has said that securing the funding commitments is critical for reaching the SOP milestone in March 2023. The company is grateful to its investors and global suppliers for their support.
“We will deliver the FF 91 Futurist with high quality and high product power as soon as possible after receipt of the funds,” said Chen.
