0001213900-26-044633
SEC filingFaraday Future amended a securities purchase agreement to increase a private placement to $12 million, issued a convertible preferred stock series, and entered into a $2 million loan, all with a single accredited investor.
Faraday Future has restructured a significant financing arrangement with its accredited investor, Gold King Arthur Holding Limited, consolidating a loan and an equity investment. The core transaction is the amendment of a securities purchase agreement, which increases the total capital commitment from $10 million to $12 million and fundamentally alters its structure. The company eliminated a potentially dilutive 'true-up' provision tied to future share price declines, replacing it with a fixed warrant. This warrant is milestone-based, exercisable only after the delivery of the 500th FX Super One vehicle, aligning investor returns with operational execution. The $12 million is split, with a small portion ($500k) for common stock and the majority ($11.5 million) directed to a newly created Series C Convertible Preferred Stock. This preferred stock is immediately convertible into common shares at a price of $0.26 and carries voting rights. Separately, but with the same investor, the company secured a $2 million, one-year loan at 10% interest, which the investor has the right to convert into the equity offering. The press release frames these changes as protective of existing stockholders by removing dilution uncertainty and tying the warrant to a concrete operational target, while the proceeds are intended to support the company's robotics and vehicle delivery goals for 2026.