2019-01-01T20:51:09+00:00
Faraday Future and Season Smart Enter Into new Restructuring Agreement

Posted by FF Team

Today, FF (Faraday Future Inc.) and its investor Season Smart have announced that they have entered into a newly agreed upon restructuring agreement. Both parties agreed to terminate the previous investment contract, withdraw and waive all current litigation and arbitration proceedings, and release all security including the asset preservation pledge and equity financing rights.


Based on the new terms, there are some adjustments to FF’s shareholding structure and corresponding rights. The lien placed on FF’s assets and equity financing limitations are lifted to better facilitate FF’s future debt financing and equity financing efforts. According to the settlement agreement, FF HQ will recover all assets, technology, employees, management rights and related interests of FF China except for the relevant assets of Nansha project. FF will continue to operate in both China and the US to ensure its global integration of operations and the execution of its China-US dual home market strategy. Additionally, FF has withdrawn litigation to further support its long-term business development. 


Upon signing these new terms, FF’s equity financing and debt financing efforts will now be able to progress quickly. In terms of equity financing, investors from all over the world have expressed interests in FF, and several have already started discussions with FF. In terms of debt financing, FF is expected to have a breakthrough due to the lift of previous liens on its assets. FF was valued at 2.45 billion US dollars before Round A financing, and the post-investment valuation is increased to 3.25 billion US dollars.


FF appreciates the tremendous support it received from Season Smart. Last year, FF successfully concluded its product development phase and has rolled out multiple pre-production vehicles in preparation for the successful delivery of FF 91. FF will continue to focus on final product delivery and maximize the interests of its shareholders, global suppliers and future users.


FF is grateful to have support from its global suppliers over the past years, especially during the past few months of financial difficulties. FF is also grateful for its remaining base of global employees who have fought hard to continue the vision of FF. FF is working to fully address the funding issues and fulfill its commitment of product delivery. Together with our global supplier partners, investors, employees and customers, FF is excited to achieve our ultimate vision of the shared intelligent mobility ecosystem.

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 John Schilling

 press@ff.com 

 310.956.6488