Meeting Set to Boost Faraday Future’s Growth with Key Proposals
Faraday Future Intelligent Electric Inc., a California-based global shared intelligent electric mobility ecosystem company, has announced that it will host an Extraordinary General Meeting of Stockholders (EGM) on March 7, 2025. The primary objective of this meeting is to seek approval for several strategic proposals that are crucial for the company’s long-term growth and operational efficiency. Faraday Future is urging all stockholders to vote in favor of these proposals, which are designed to bolster the company’s strategic initiatives and financial stability.
Proposal Highlights
1. Share Authorization Proposal
One of the key proposals to be presented at the EGM is an amendment to the company’s Charter to increase the number of authorized shares of Common Stock by 25,000,000. This amendment will raise the total number of authorized shares from 104,245,313 to 129,245,313, marking a 24% increase. Additionally, the total number of authorized shares, including Preferred Stock, will increase from 114,245,313 to 139,245,313. This adjustment is primarily aimed at meeting the company’s obligations to holders of certain convertible notes, ensuring that Faraday Future remains financially agile and capable of fulfilling its contractual commitments.
2. Private Placements Proposal
Another significant proposal involves seeking approval for the issuance of Common Stock to holders of certain convertible notes and warrants in accordance with Nasdaq Listing Rule 5635(d). This measure is essential for maintaining regulatory compliance while also enabling the company to honor its financial obligations. By securing approval for this proposal, Faraday Future will ensure that it can continue to leverage private placements as a strategic tool for raising capital and supporting its growth initiatives.
3. Auditor Ratification Proposal
The final proposal on the agenda is the ratification of the appointment of Macias Gini & O’Connell LLP (MGO) as the company’s independent registered public accounting firm for the fiscal year ending December 31, 2025. The ratification of MGO underscores Faraday Future’s commitment to maintaining rigorous financial oversight and transparency, which are critical for building investor confidence and ensuring long-term financial health.
Building Confidence in Strategic Direction
The proposed 24% increase in authorized shares is a carefully considered move that balances the company’s immediate capital needs with the interests of its stockholders. This increase is designed to support three key strategic initiatives: fulfilling existing commitments to holders of certain convertible notes, maintaining flexibility for future strategic opportunities, and advancing the FX mass-market strategy alongside the continued production of the FF 91 2.0.
1. Addressing Concerns & Stock Stability
Faraday Future Meeting is committed to remaining compliant with Nasdaq’s continued listing standards, including the minimum bid price rule. As long as the company’s stock price remains above $1.00, there will be no need for additional measures related to the minimum bid price rule. The company has stated that a reverse stock split will only be considered as a last-resort compliance measure. Furthermore, Faraday Future is vigilant against illegal short-selling activities and will conduct investigations if any suspicious activities are detected.
The company has consistently taken strategic actions to enhance its business plans and operations, aligning them with its long-term strategic goals. These actions are aimed at Meeting strengthening the company’s market position and ensuring sustainable growth.
2. Justifying the Share Increase & Managing Dilution Perception
Faraday Future acknowledges the concerns related to share dilution and has adopted a cautious approach to increasing authorized shares. The funds raised through this increase have been instrumental in improving liquidity and supporting the development of the FX brand. By carefully managing the issuance of new shares, the company Meeting aims to balance capital needs with stockholder interests, ensuring that the dilution impact is minimized.
3. Reinforcing Strategic Growth & Future Confidence
The company is focused on adopting a healthier, long-term capital strategy that supports cost optimization, operational efficiency, and the execution of the FX strategy. Faraday Future plans to use the remaining $20 million in gross financings efficiently, Meeting ensuring that resources are allocated to high-impact areas that drive growth and innovation.
A stronger and revamped business strategy has led to renewed engagement with top-tier investment banks, suppliers, and OEM partners. The company is in constant discussions with potential strategic investors, including those from the Middle East, to explore new opportunities for growth and collaboration.
Matthias Aydt, Global Chief Executive Officer of Faraday Future, emphasized the importance of these proposals in executing the company’s dual-brand strategy. “These proposals, particularly the increase in authorized shares, are critical to executing our dual-brand strategy,” said Aydt. “The successful completion of our recent two $30 million financings demonstrates investor confidence in our vision, and the additional authorized shares will help ensure we can continue to execute both our premium FF 91 program and our exciting new FX mass-market initiative.”
