Faraday Future Intelligent Electric Inc. announced last week that it had reached an agreement on a new standby equity line of credit with an affiliate of Yorkville Advisors Global LP.
The Gardena-based electric car manufacturer will have access to $200 million, which can be increased to as much as $350 million.
The line of credit will improve Faraday Future’s financial flexibility and advance its progress toward launching its first vehicle, the FF 91 Futurist, according to a release from the company on Nov. 14.
Carsten Breitfeld, chief executive of Faraday Future, said that the financing facility is a key part of the company’s strategy to raise funds it needs to get the FF 91 on the road and in the hands of customers as quickly as possible.
“Our FF 91 vehicle program is advancing, and recent testing and validation results have exceeded our targets,” Breitfeld said in a statement.
Testing has shown that the FF 91 can achieve an EPA-certified range of 381 miles on a single charge. “Which is truly exceptional for a large luxury car that delivers 1,050 horsepower and 0-to-60-miles-per-hour performance in under 2.4 seconds,” Breitfeld added in the statement.
Yun Han, interim chief financial officer of Faraday Future, said that the company was pleased to welcome Yorkville as its newest funding partner. Faraday is working to finish preparations for the start of production on the FF 91 and to bring its vision of the future of mobility to the market, she added.
“With this new financing, we have greater financial flexibility and can plan with greater clarity and confidence as we move toward launch of the FF 91,” Han said in a statement.
Under the terms of the equity line of credit, Faraday will have the right, but not the obligation, to sell to Yorkville up to $200 million in shares of the company’s class A common stock. The company has the right to increase that amount by up to $150 million in one or more installments, according to the Faraday release.
The shares will be sold to Yorkville at a discounted price of 97% of the 3-day volume-weighted average price at the time of funding, and generally limited to one-third of the company’s trading volume during such time period, the release added.
The FF 91 EV was designed in the company’s Gardena headquarters and engineered in Los Angeles, Silicon Valley, and China. The “global DNA” of the vehicle reflects the talent at Faraday and across the globe, with support from suppliers from countries such as Italy, Germany, Japan, Netherlands, China, Belgium and Switzerland, according to a company release.
