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Proposed to go public to raise 1 billion US dollars FF official announced a new plan for car building | Zhuhai | US dollars_Sina Technology


Original title: FF official announced a new plan to build a car

Recently, Faraday Future (Faraday Future, hereinafter referred to as “FF” or “Company”), headquartered in California, USA, announced on its official website that it has reached a final agreement with the special purpose acquisition company “SPAC” on a business combination. The company plans to invest in Nasdaq Securities. The listing on the trading market is completed, and the stock code is “FFIE”.

According to the content announced by FF, this combined transaction provides FF with approximately US$1 billion in funds, including US$230 million in cash held by PSAC in trust (assuming no redemption), and US$10.00 per share. The price has oversubscribed for $775 million in fully committed common stock PIPE. The common stock PIPE in this financing includes more than 30 long-term institutional shareholders from the United States, Europe and China. PIPE cornerstone investors include large financial institutions from the United States and Europe, China’s top three private auto OEMs and China’s first-tier cities .

The transaction is expected to be completed in the second quarter of 2021. After the transaction is completed, FF is valued at approximately US$3.4 billion. Industry insiders pointed out that becoming a listed company is an important milestone for FF, which will provide FF with further opportunities to obtain funds through the open market.

FF’s flagship product, FF 91, is planned to be launched within about twelve months after the merger is completed. Since its establishment, FF has invested more than US$2 billion in accumulated funds.

On January 29, Zhejiang Geely Holding Group Co., Ltd. announced that it had signed a framework cooperation agreement with FF. The two parties plan to cooperate in the field of technical support and engineering services, and explore the possibility of providing foundry services by the joint venture between Geely and Foxconn. As a financial investor, Geely Holding Group also participated in a small amount of investment in FF’s listing in the United States. On January 27, many media reported that Zhuhai City will also participate in the investment of 2 billion yuan in FF companies.

Analysts pointed out that as a traditional car company, Geely’s existing operation management capabilities, supply chain system and vehicle manufacturing capabilities will accelerate the implementation of FF’s products and strategies in China. At the same time, FF can also realize the industrial layout in Europe through Geely, and prepare for the future expansion of the European market. For Geely, through cooperation with FF, it can jointly seize the technology and market in the field of smart electric vehicles.

The cooperation between Zhuhai and FF has also been brewing for a long time. In December 2020, FF established “Fafa Automobile (Zhuhai) Co., Ltd.” in Zhuhai. The company has a registered capital of US$250 million and is wholly-owned by FF’s Hong Kong entity. Its business scope includes the sales of new energy vehicles.

Public information shows that FF was founded in 2014 by Jia Yueting, founder of LeTV Group. In 2016, the LeTV system encountered a financial crisis, and Jia Yueting went to the United States to invest in the car-building project FF. However, FF financing suffered repeated setbacks and faced a serious cash flow crisis at one time. The mass production of the first car, the FF 91, was repeatedly postponed.

This time FF announced that in the next 5 years, the company’s B2C passenger car plan will include the FF 91 series, FF 81 series and FF 71 series. FF 81 is expected to be launched in mass production in 2023, and FF 71 is expected to be launched in mass production at the end of 2024. FF predicts that sales will exceed 400,000 units in the next five years, and its first flagship model, the FF 91, has received more than 14,000 orders. In addition to passenger cars, FF also plans to use its VPA platform to launch the “Last Mile Intelligent Transport Vehicle” (SLMD) in 2023.


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