(Yicai Global) Oct. 16 -- Faraday Future, the US new energy vehicle start-up founded by disgraced Chinese business tycoon Jia Yueting, has secured an amended bridge loan of up to USD45 million to give it breathing space as it prepares for an initial public offering and to launch its flagship FF91 electric car, the Beijing Business Today reported today.
The funds are an expansion and roll-over of a debt financing loan reached in 2019, Faraday said on Oct. 14. US merchant bank Birch Lake, which stepped in to support Faraday during a previous funding crisis, has returned to support the firm. It is joined by US venture capital firm ATW Partners which has rich experience in stock IPO incubation projects, it added.
Faraday’s IPO has been on the cards for a long time, and the firm is reportedly in talks with a shell company to hasten the process.
A successful IPO will be key to helping get the FF 91 to market which is essential for the survival of the company, industry insider Ding Shaojiang said. The USD45 million won’t go far. The Los Angeles-based firm said at the end of last year that it needs around USD850 million to start mass production, he added.
Once the financing has been raised, Faraday said it expects it to take around nine months for the FF91 to start rolling off the production line.
The company is in talks with an Asia Pacific partner and is close to announcing the hiring of various heavyweights inside and outside the vehicle industry, the Beijing Business Today reported, citing a company insider.
The recent approval by a US court of a personal bankruptcy reorganization plan to settle founder Jia’s mountain of debts in China has likely helped clear the way for Faraday’s fundraising to proceed more smoothly.
Editor: Kim Taylor