Faraday Future Secures $25 Million Convertible Note Financing

Faraday Future announced on May 16 that it has entered into a stock purchase agreement with institutional investors for a total amount of $25 million. Under the agreement, the investors have subscribed to convertible promissory notes with an aggregate principal amount of $25 million. The common shares issuable upon conversion of this financing have not yet been registered and are subject to trading restrictions, making them not immediately tradable. Of the total amount, $12.5 million will be directly deposited into the company’s operating account, while the remaining $12.5 million will be placed into an escrow account controlled by the investors, pursuant to a controlled account agreement between the company and the investors, and will be released to the company upon satisfaction of specified conditions.