Benzinga - California-based EV firm Faraday Future Intelligent Electric Inc (NASDAQ:FFIE) on Tuesday said that it had signed definitive agreements to raise $100 million, rekindling hopes for the delivery of its flagship FF 91.
What Happened: The company will raise the amount by issuing unsecured convertible notes and use the cash generated to ramp up FF 91 production, Faraday Future said in a statement.
“This round of financing commitments is expected to provide the Company with capital to support our FF 91 delivery milestone, sales and service system development, as well as support our near-term production ramp-up goals,” said Global CEO of Faraday Future Xuefeng Chen.
Independent investment fund Metaverse Horizon Limited, FF Global Partners (FFGP) and V W Investment Holding Limited are the major investors in the fresh funding round. While FFGP is a partnership of 20 current and former senior executives of the company, V W Investment is an affiliate of a long-term shareholder of Faraday Future.
Why It Matters: Last month, Faraday Future postponed the delivery timeline of its flagship vehicle and sought additional funding to enable the delivery process.
Faraday Future, backed by data analytics company Palantir Technologies (NYSE:PLTR), initially planned to begin production of the FF91 electric vehicles in the spring of 2022 and deliveries in late 2022.
According to the new timeline, Faraday Future will commence reservations for its FF 91 vehicles in late May. Those who reserve will take possession of the vehicle in the second phase of the three-phase delivery process, expected to commence at the end of the second quarter.
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