EV Firm Faraday Future Adjusts Board and Obtains $100M in New Financing

Following efforts to declare bankruptcy and a Nasdaq listing, California-based electric vehicle maker Faraday Future has reportedly encountered fissures between management and major shareholders. On the evening of September 26, the firm announced that it had reached a final agreement with FF Top Holding LLC, a major shareholder of the firm, on financing and board reorganization. At the same time, Faraday Future received up to $100 million in financing from Daguan and ATW Partners.

SEE ALSO: Faraday Future Employees Decry Bankruptcy Efforts by “Malicious Board Members”

According to the agreement, FF Top and Faraday Future have formally reached a series of governance structure adjustment agreements, including a reorganization of the Board of Directors. Founder YT Jia and his team of partners have regained control of the firm. The announcement states that Sue Swenson, the current executive chairman, and Brian Krolicki, the former chairman and current director, will resign.

Furthermore, after Sue Swenson and Brian Krolicki resign, the company’s board will also undergo a major reorganization after the annual general meeting, with the original nine members being reduced to seven.

FF 91 (Source: Faraday Future)

Pursuant to relevant agreements, and in order to ensure the smooth progress and transition of Faraday Future’s board reorganization, Adam He has formally been appointed as a new independent board member and a member of the Audit Committee and the Nominating and Corporate Governance Committee of the Board.

According to public information, Adam He is the CFO of Wanda America Investment Group with a diverse senior management background in IPOs, mergers, and audits.

The mass production of the FF 91 Futurist, a luxury EV, is still in progress. Equipment at the firm’s ieFactory California in Hanford has been put in place and is undergoing intensive testing. The FF 91 Futurist’s 381-mile range has also been officially certified by the US EPA, making it the world’s longest-lasting luxury electric vehicle under EPA standards, which also means that the most important legal certification before the FF 91 Futurist production has ended. According to media reports, Faraday Future’s Chinese factory project has also made breakthrough progress, and is likely to be settled in a southern city in the near future.

FF 91 (Source: Faraday Future)

On August 16, Faraday Future released its second-quarter results of 2022, which showed that the company’s operating loss in the second quarter of this year increased to approximately $137 million from approximately $28 million in the corresponding period of last year, while its net loss increased to $142 million from $52.775 million in the corresponding period of last year.

The company explained that the loss was mainly due to an increase in the company’s engineering, design and testing (ED&T) services, a significant increase in the number of employees and staff-related expenses and re-engagement of suppliers and mass procurement of ED&T services.