Embattled electric mobility startup Faraday Future has resolved all its investor issues and moved closer to launching its FF91 electric car. The EV maker was slated to begin production for the FF91 in 2018. But then the launch was delayed as the startup pushed for more funding. Its issues peaked in Q2 it reported a loss of $137 million and was just left with $121 million in cash and FF Top Holding sued it. Now, this issue has been settled as per its 8K filing.
The new agreement involves the removal of two board directors, new financing and overall expansion of the number of seats on the board from nine members to ten with Adam He joining. As a part of the resolution, Faraday Future will receive $40 million in near-term funding from convertible notes and another $60 million from Senyun International.
“FF Top is glad that a resolution has been reached. We look forward to this opportunity for a new start and brighter future for FFIE, and to all parties performing their obligations under the governance agreement, to achieve the best interests of Faraday Future and all shareholders,” said a spokesperson for the investment firm.
“The resolution of governance and related issues with our largest shareholder is a major accomplishment and an important step forward for Faraday Future and all our stakeholders. We can now focus our effort on building the FF 91. We appreciate all parties’ efforts in reaching this agreement,” added Dr Carsten Breitfeld, the CEO of Faraday Future.
