Faraday Future Intelligent Electric Inc. (Nasdaq: FFIE), a California-based global intelligent electric mobility company, announced plans to implement a 1-for-40 reverse stock split of its common stock, effective at 5:00 p.m. ET on August 16, 2024. The stock will begin trading on a split-adjusted basis starting August 19, 2024.
At the company’s Annual Meeting of Stockholders on July 31, 2024, shareholders approved a proposal allowing the Board of Directors to amend the company’s Certificate of Incorporation to effect the reverse stock split and reduce the total number of authorized shares of common stock. The Board approved the 1-for-40 reverse stock split on August 4, 2024. As a result, every 40 shares of issued and outstanding common stock will automatically be combined into one share. The company’s Class A common stock will trade under a new CUSIP number, 307359 885, while Class B common stock will have CUSIP number 307359 877. Publicly traded warrants will remain under the symbol “FFIEW,” but the number of shares exercisable per warrant will be adjusted proportionally.
The reverse stock split will also reduce the number of shares issuable upon conversion of the company’s convertible securities and the exercise or vesting of stock options, restricted stock units, and private warrants, with a corresponding increase in conversion and exercise prices. Additionally, authorized shares of common stock will be reduced from 4.17 billion to 104.25 million.
No fractional shares will be issued due to the reverse stock split; stockholders entitled to fractional shares will instead receive one full post-split share. The reverse stock split will affect all common stockholders proportionally without impacting individual ownership percentages.
Faraday Future has appointed Continental Stock Transfer & Trust Company as the exchange agent for the reverse stock split. Stockholders holding shares through brokers or other nominees will have their positions adjusted automatically.
