Shares of Faraday Future Intelligent Electric (NASDAQ:FFIE) jumped 34% premarket on Friday after the electric vehicle company said it secured $30 million in financing commitments from investors to drive growth and new business opportunities.
The new financing commitment includes a previously funded $7.50M and $22.50M of new investment in the form of convertible notes and warrants to acquire additional shares of the company’s common stock.
The conversion price for the convertible notes and exercise price for the warrants, are $5.24 and $6.29 per share, respectively.
Investors in the Middle East, the U.S., and Asia participated, including Master Investment, an investment firm of Sheikh Abdulla Al Qassimi. The involvement of Master Investment marks a significant milestone, underscoring the company’s successful expansion and development efforts in the region.
In April 2024, the company established a Middle Eastern sales entity in Dubai, expanding its reach beyond the U.S. and China.
Separately, the California-based firm announced a launch event, scheduled for September 19, where it will further present its second brand strategy and Global Automotive Industry Bridge Strategy and discuss interim achievements. The strategies will likely provide possible solution to address the lagging EV sales in the U.S.
Faraday Future (FFIE) will seek to bring China’s components and supply chain into the U.S. to invigorate the U.S. AI EV industry and provide consumers with more diverse and better product options. It is also currently in talks with several potential partners regarding the model selection for its first second-brand vehicle.
FFIE shares have fallen over 78% so far this year, while the benchmark S&P index (SP500) has risen 16% for the same duration. The company just yesterday regained compliance with Nasdaq’s continued listing criteria.
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