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CTOnews.com, February 6 (Xinhua)-- California-based Faraday Future (Faraday Future) today announced a series of final financing agreements and significant changes to the main terms of the warrants in the original FF guaranteed financing agreement.

Faraday said in the future that after its successful implementation on time, the company will raise all the necessary funds for FF 91 Futurist to start mass production ("SOP"). At the same time, the company announced that an extraordinary general meeting will be held on February 28, 2023.

CTOnews.com understands that Faraday has announced in the future arrangements for the implementation of the final agreement for the financing of $135 million (currently about 917 million yuan) convertible secured instruments, provided that the relevant conditions are met or waived. Of this amount, $80 million (currently about 543 million yuan) will be received within 10 working days (including previously by Senyun International Ltd. As an advance payment of $10 million), the remaining funds will be received within 5 working days after the relevant conditions are met or waived, including the receipt of the company's shareholder approval and a valid registration statement of the applicable stock. ATW Partners affiliates and investors such as Acuitas Capital were involved in the deal.

According to reports, this round of financing plus the $33.4 million received by Faraday after the "FF Global Investor Business Update Conference" to be held on December 15, 2022 ($30.6 million after deducting original discounts and transaction costs, including previously by Senyun International Ltd. The provision of US $10 million as an advance) indicates that the company has received all the financial commitments required for mass production of FF 91 Futurist SOP, provided that the funds arrive in a timely manner. After receiving all the financing as expected, Faraday is expected to begin mass production of the salable FF 91 Futurist,4 at the end of March 2023, with delivery by the end of April.

In addition, Faraday said in the future that it plans to hold a special shareholders' meeting on February 28, 2023 to consider the proposal for additional authorization for the issuance of Class A common shares of the company. If approved by FF shareholders, the proposal will clear the way for additional ongoing financing in the future, thus best supporting FF 91 Futurist mass production delivery and the company's other strategic objectives. As a major shareholder of the company, FF Top Holdings LLC, a subsidiary of FF Global Partners LLC (FFGP), agreed to vote on all its beneficial shares at the upcoming extraordinary general meeting in support of the proposal. In the future, Faraday also recommended that all shareholders vote for the proposal by January 31, 2023 and solicit proxy support for the proposal. The approval of FF shareholders is not only a condition for the completion of some of the above financing, but also a key path to support the company to achieve long-term strategic goals.

Faraday pointed out in the future that this round of financing agreement also includes important changes to the main terms of the warrants in the original FF secured financing agreement. Among such warrants, there is a complete ratchet anti-dilution clause that allows investors the right to buy additional shares at the lowest price equal to the shares issued after the warrants are issued. The terms have been removed from the warrants in the financing agreement, helping FF shareholders successfully avoid future dilution that could add up to hundreds of millions of shares. The company also agreed to issue $41 million of convertible secured notes to existing secured note investors in exchange for the cancellation of most of their previously outstanding warrants.

"raising $135 million is an indispensable resource guarantee for the final mass production delivery of the FF 91 Futurist sprint, and the acquisition of these additional funding commitments provides a boost to FF's goal of reaching the SOP milestone in March 2023." Chen Xuefeng, FF global CEO, said, "with these expected funds in place, we will achieve the mass production delivery of FF 91 Futurist with high quality and high product power as soon as possible."

Through this round of financing, Faraday said in the future that it is approaching the seventh milestone in manufacturing, namely SOP. Faraday Future had previously announced that it had reached the sixth milestone in production, that is, the completion of the construction and equipment installation of the vehicle assembly area. This marks the completion of six of the seven milestones set by FF at the end of 2021.

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