Faraday Future Intelligent Electric Inc, a California-based global shared intelligent electric mobility ecosystem company, announced on Monday that it had reached an agreement with an affiliate of Yorkville Advisors Global, LP, for a new standby equity line of credit (ELOC).
Under the terms of the agreement, Faraday Future will have the right to issue and sell up to $200 million shares of the Company’s Class A common stock to Yorkville. Faraday can increase the $200 million to $350 million through one or more installments. The shares will be sold at a discounted price of 97% of the 3-day weighted average price at the time of funding and limited to one-third of the company’s trading volume during the period.
Faraday Future also announced that its Registration Statement on Form S-1/A has been declared effective by the US Securities and Exchange Commission and expects to file a new Form S-1 for the ELOC in the future.
The agreement will help Faraday Future fund its upcoming FF 91 Futurist EV, the company’s flagship product, which is already available for preorder.
“Our FF 90 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 2.6 seconds,” said Dr. Carsten Breitfield, 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 quickly as possible,” Breitfield added.
Faraday Future’s Interim Chief Financial Officer, Yun Han, said the new financing would give the company “greater financial flexibility” and the ability to “plan with greater clarity and confidence as we move toward launch of the FF 91.” He also added that Faraday Future is “pleased to welcome Yorkville as our newest funding partner and are working diligently to finish preparations for start of production and to bring our vision of the future of mobility to market.”
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