(Yicai Global) April 12 -- Leshi Internet Information & Technology Corp., Beijing has issued a reply to a query from Shenzhen Stock Exchange on April 11, which outed Faraday Future’s strategic investor as a Hong Kong institution.
Jia did not sell any equity nor obtain any funds in the funding round, the reply also said. This may suggest that Jia, whose assets are frozen in China, led Faraday Future to secure new financing, but did not cash out to repay his debts. Shenzhen Rui Chi Electronics Co., a Guangdong province-based smart car company, purchased a plot for processing and manufacturing in a bonded area in Nansha District, Guangzhou for CNY364 million (USD58 million) on April 8 to be used to make cars.
Rui Chi is an affiliate of Faraday Future, and all the land-purchase funds came from an institutional investor in Hong Kong which is also a strategic investor in Faraday & Future Inc.
As Leshi faced a cash crunch, Jia absconded to the US in July, prompting Tencent Holdings Ltd. co-founder Zeng Liqing to dismiss Jia’s teetering imperium as a “Ponzi scheme.” Jia resigned from Leshi purportedly to push ahead with his carmaking plan. Following a half year of tribulations, plagued by brain drains, lawsuits and funding shortages, Jia revealed at its supplier summit on Feb. 14 that Faraday Future had secured USD1.5 billion in financing. The investor has sent financial officers to the company to monitor every transaction and signed a non-disclosure agreement with Faraday Future, and this sets strict requirements on disclosing the background to the investment and investor, state news portal The Paper reported. The saga continues.