Faraday Future (FF), the electric car company founded by Jia Yueting, an entrepreneur who in October 2019 filed for bankruptcy in the US after running up billions of dollars in personal debt, will file for listing in the US through SPAC (Special Purpose Acquisition Company) and announce its financing in China in within two weeks at the earliest, according to 36kr.
Geely Holding plans to invest $30-40 million in FF, to be announced next week at the earliest, 36kr said, citing sources.
In addition, although Evergrande Group had a dispute with FF over the control of its entity in CHina, Evergrande is still involved in the negotiations for FF's fundraising in China this time. Evergrande Group holds a 32% stake in FF.
Reuters reported on January 25 that FF will build a new factory in a first-tier city in China with an initial capacity of 100,000 units.
FF's manufacturing service partner is none other than Geely Holding, and the two sides will also cooperate on FF models such as self-driving, 36kr said, adding that FF has already negotiated with CATL on power battery cooperation matters.
Previously, Bloomberg reported that FF is seeking to list as a SPAC in the US stock market and is currently in talks with Property Solutions Acquisition about a merger.
SPAC is a form of fast-track IPO. In the process, a SPAC platform is set up to raise capital, and then the entity's business company is acquired, allowing the latter to achieve a listing transaction.
In a Bloomberg report, FF's SPAC platform company is seeking more than $400 million in funding to support the deal, which would value the combined entity at about $3 billion.
