Carsten Breitfeld, chief executive of faraday Future, an electric car start-up, said on Monday local time that the company was planning to close a deal and go public as soon as possible through a reverse merger with a special purpose merger with SPAC, Reuters reported.
“We are working on this deal and expect to announce some news in the near future, ” Bi said of the possibility of a deal. However, he declined to say who Faraday was in talks with in the future and when a deal would be possible.
SPAC usually refers to shell companies that do not actually operate. Compared to traditional IPOs, the process of listing through the SPAC backshell is simpler and faster. The easy way to list is now popular with investors, with 20 companies listing and raising capital in the US through SPAC deals in the first seven months of this year, according to media reports.
Faraday hopes to raise money by going public to mass produce its first electric luxury SUV, the FF 91, as soon as possible. The company expects to raise between $800 million and $850 million. Bifukang revealed that the car could be delivered after nine months of financing and that mass production of the FF 91 would begin 12 months after the deal.
As for the car’s production base, it will initially be produced at a plant in Hanford, California, but will eventually be used by a contract manufacturer in Asia. Mr Bifocon said Faraday had reached an agreement with the company in the future. He declined to give the name of the company.
The FF91, Faraday’s first and flagship car of the future, was released in January 2017, but more than three years later, it has yet to be mass-produced.
In January, the FF91 was unveiled at the CES show, and the car is said to be very close to the mass-produced version. The FF91 sells for about $200,000 in the U.S. and about $2 million in China as a luxury car. At the time, Mr. Bi told the media that the car was still $850 million short of production.
The funding gap has made it difficult for the FF’s mass production program to move forward. In a Reuters report, Mr Bi acknowledged that Mr Jia’s shares had been a “major obstacle” to the introduction of other investors. However, this has improved since Mr Jia’s personal bankruptcy restructuring programme hit the ground in July.
At present, Jia Yueting no longer holds FF shares, its personal equity has been transferred to third-party management of creditor trusts, Bi Fukang revealed that through the partnership system and employee shareholding plan, employees own more than 50% of Faraday’s future shares.
Admitting that Faraday had struggled to execute his business plan in the past, Mr. Bifocon said that because of the company’s history and sometimes bad news, not everyone really trusted us. But now they want to see us as a stable company.