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Faraday Future Announces Additional Proposal for the Recently Announced Special Meeting of Stockholders to Limit the Company’s Authorized Shares Available for Issuance
LOS ANGELES--(BUSINESS WIRE)-- Faraday Future Intelligent Electric Inc. (Nasdaq: FFIE) (“FF,” “Faraday Future,” or “Company”), a California-based global
About this update from Faraday Future Intelligent Electric Inc.
[{"type":"text","content":" LOS ANGELES--(BUSINESS WIRE)--\nFaraday Future Intelligent Electric Inc. (Nasdaq: FFIE) (“FF,” “Faraday Future,” or “Company”), a California-based global shared intelligent electric mobility ecosystem company, announced an additional proposal for the recently announced special meeting of stockholders to limit the Company’s authorized shares available for issuance.\n\n\nThe Board of Directors of the Company (“Board”) approved an additional proposal for approval by the Company’s stockholders at the upcoming special meeting. The previously disclosed proposal to effect a reverse stock split of the Company’s common stock at a ratio between 1-for-2 and 1-for-90 would hold the existing authorized shares unchanged, effectively expanding the total authorized shares by the same multiple as the reverse stock split. The new additional proposal is designed to cap the increase in the total additional authorized shares at six times the post reverse split shares authorized assuming the previously disclosed reverse stock split proposal is approved and the reverse stock split is implemented. The Company expects to file an amended preliminary proxy statement that includes such authorized share cap proposal shortly.\n\n\nThis decision showcases FF’s commitment to its shareholders and dedication to aligning corporate policies with investor interests.\n\n\n“Following extensive discussions and thorough consideration of feedback, the board has chosen to implement this significant change in an effort to balance the company's strategic needs while addressing the concerns of our shareholders,” said XF Chen, CEO of Faraday Future. “This crucial change symbolizes our commitment to maintaining strong corporate governance and enhancing shareholder value.”\n\n\nAs previously disclosed, the reverse stock split ratio will be determined by the Board after stockholder approval. The Board reserves the right to elect not to proceed with the reverse stock split if it determines that implementing a reverse split is no longer in the best interests of the Company and its stockholders.\n\n\nThe Company is still in its growth and production ramp-up phase. The Company believes that the stockholders’ approval of the reverse stock split proposal will improve the Company’s fundamentals across the board, ushering in the best opportunity to introduce institutional and strategi...