Faraday Future, the US-based electric car and smart vehicle developer backed by real estate developer China Evergrande, agreed today to a reverse merger with a special purpose acquisition company.
The deal will allow Faraday to take the Nasdaq Capital Market listing secured by Property Solutions Acquisition Corp (PSAC) when it floated in July 2020 in a $200m initial public offering. It will value the merged company at about $3.4bn once the transaction closes.
The transaction will be boosted by $775m in private investment in public equity (PIPE) financing anchored by investors including undisclosed Faraday shareholders and an unnamed original equipment manufacturer and tier-1 Chinese city.
Founded in 2014, Faraday has developed and launched an electric vehicle called the FF91 and also provides an intelligent driving software platform in addition to design and engineering services.
Investment firm Season Smart had provided a reported total of $2bn in funding for Faraday before China Evergrande subsidiary Evergrande Health Industry paid $860m to acquire Season Smart in 2018, taking a 45% stake in Faraday in the process.
Carsten Breitfeld, CEO of Faraday, said: “We are excited to enter into this partnership with PSAC. This is an important milestone in our company’s transformation, one that we achieved with strong commitment from our employees, suppliers and partners in the US and China, as well as the city of Hanford, California.
“I am excited that this business combination will allow us to launch the class defining FF 91, building upon the founder’s original vision to help our users and shareholders take part in shaping the future of mobility.”
