Written by Cláudio Afonso | LinkedIn | X
Electric vehicle (EV) startup Faraday Future published on Friday a letter urging the shareholders to approve all the proposals at the upcoming Annual General Meeting scheduled for the last day of July.
“Over the past years, we have experienced numerous ups and downs. We thank you for your steadfast support of Faraday Futuree over the years. You have protected our shared dreams and saved Faraday Future,” the company stated in the letter.
The company founded by YT Jia warned that if the reverse stock split is not approved, it can lead to delisting from Nasdaq making it “impossible” the capital raise in the near future. Faraday is aiming to get approved for a reverse split with a ratio ranging from 1-for-2 to 1-for-40.
“Failure to approve the former would make it impossible for the Company to raise additional capital to support the Company in achieving strategic objectives, and failure to approve the latter could lead to our delisting from Nasdaq. The failure of any of these proposals could result in significant losses for our stockholders.”
After delivering one FF 91 2.0 electric vehicle year to date, the US-based company is targeting to deliver the second one of the year (and the 13th overall) “around July 31”.
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In an interview with the YouTuber “The Omar Gosh Vlogs,” Faraday’s founder YT Jia revealed that deliveries will continue on the last day of July, when the Annual Meeting of shareholders will take place.
The company will host an investor community day at its headquarters on July 20, eleven days before the Annual Meeting where shareholders.
Faraday will also seek approval to increase the number of authorized shares of Class A and Class B common stock from 463,312,500 to 4,169,812,500, and the total number of authorized shares of common and preferred stock from 473,312,500 to 4,179,812,500.
Shareholders will also vote to elect five directors to serve until next year’s annual meeting as the board also seeks ratification of Macias Gini & O’Connell LLP as the independent accounting firm for the current fiscal year.
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Another item on the agenda is an amendment to the 2021 Stock Incentive Plan to increase the number of shares of Class A Common Stock available under the plan by 88,252,926 shares.
Recently, the company also said it entered into a $4.9 million lease financing arrangement with Utica Leaseco, as revealed in an SEC filing.
The agreement aims to support the EV maker’s operational and production capabilities. Year to date, the company has delivered only one vehicle as it seeks more funding in the Middle East region.
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Written by Cláudio Afonso | LinkedIn | X
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