Faraday Future is back again, this time with new investors
The long-troubled electric car maker is back and giving the electric car business another go.
Faraday Future is back. Maybe. Probably? Well, kind of. Anyway, that's what it said in a press release on Monday.
Faraday has had a rough few years of late, and this latest round of investors, coupled with some serious restructuring has the company talking about finally sending its FF91 electric minivan supercar thing into actual honest-to-gosh production.
Who would be crazy enough to invest in a company with the history that Faraday has? And the reputation that its founder has? Well, a few companies. First, there is The9. The9 entered into a joint venture agreement with FF in which it will provide up to $600 million in cash and Faraday will kick in some Chinese land use rights which the two will use to build electric cars .
Next, Faraday Future -- with the help of a valuation advisor -- got its IP valued at $1.25 billion and has used that to attract other funds in the form of bridge investments. Those bridge investments are worth an additional $225 million and are being facilitated by a merchant bank called Birch Lake Investments.
"Birch Lake is pleased to partner with FF at this critical juncture and is looking forward to assisting FF toward becoming a leading manufacturer of EVs in the United States, China and beyond," said Birch Lake CEO Jack Butler in a statement. "FF's technology, product strategy and unwavering commitment to its early 2020 production launch of the FF 91 are impressive."
Faraday Future is also working with a group called Stifel Nicolaus on an equity capital-raising program.
What is all this money going to go toward? Primarily paying suppliers, finishing the design and development of the FF91 and beginning development of a volume-production model which FF is calling the FF81.
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