By Michael Elkins
California-based electric mobility company, Faraday Future (NASDAQ:FFIE) announced Monday that they have reached an agreement with an affiliate of Yorkville Advisors Global, LP, for a new standby equity line of credit.
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 U.S. 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.
Shares of FFIE are down 2.05% in mid-day trading on Tuesday.