Business
Faraday Future Announces Significant New Financing and Effective Form S-1/A Registration Statement
- Definitive Agreement Reached for Committed Equity Facility Up to $350 million - - Significantly Strengthens Financial Flexibility and Advances Progress
About this update from Faraday Future Intelligent Electric Inc.
[{"type":"text","content":"\n- Definitive Agreement Reached for Committed Equity Facility Up to $350 million -\n\n- Significantly Strengthens Financial Flexibility and Advances Progress Toward Start of Production -\n\n- S-1/A Registration Statement Effective on November 10, 2022 -\n\n GARDENA, Calif.--(BUSINESS WIRE)--\nFaraday Future Intelligent Electric Inc. (“Faraday Future” or the “Company”) (NASDAQ: FFIE), a California-based global shared intelligent electric mobility ecosystem company, today announced that it has reached an agreement for a new standby equity line of credit (“ELOC”) with an affiliate of Yorkville Advisors Global, LP (“Yorkville”). The facility has an initial commitment of $200 million which can be increased to up to $350 million at the Company’s option. The ELOC will significantly improve Faraday Future’s financial flexibility and advance its progress toward launching the FF 91.\n\nUnder the terms of the ELOC, Faraday Future will have the right, but not the obligation, to issue and sell to Yorkville up to $200 million in shares of the Company’s Class A common stock subject to customary conditions including an effective registration statement for the resale of such shares. The Company has the right to increase the $200 million commitment by up to $150 million in one or more installments. The shares will be sold to Yorkville at a discounted price of 97% of the 3-day volume-weighted average price at the time of funding, and generally limited to one-third of the Company’s trading volume during such time period. Additional information about the ELOC can be found in our 8-K filed earlier today.\n\nSeparately, the Company announced that its Registration Statement on Form S-1/A, dated November 8, 2022, has been declared effective by the U.S. Securities and Exchange Commission. The company expects to file a new Form S-1 for the ELOC in the near future.\n\n“Our FF 91 vehicle program is advancing, and recent testing and validation results have exceeded our targets, including an EPA range certification of 381 miles, which is truly exceptional for a large TechLuxury car that delivers 1050 horsepower and 0-60 performance in under 2.4 seconds,” said Dr. Carsten Breitfeld, Global CEO of Faraday Future. “This new financing facility is a key part of our strategy to raise the funds we need to get the FF 91 on the road and in the hands of users as quick...