Beijing (PingWest)—Electric vehicle firm Faraday Future announced on Thursday that it will go public through a merger with Property Solutions Acquisition Corp, a special-purchase acquisition company (SPAC), in a deal valuing the combined entity at $3.4 billion.
The deal, supported by a private investment of $775 million, is expected to fetch Faraday Future $1 billion in gross proceeds.
Chinese automaker Geely is set to be an anchor investor in the private placement, Reuters reported on Wednesday, citing people familiar with the matter.
Faraday plans to set up a new base in China and enlist Geely for contract manufacturing services.
Los Angeles-headquartered Faraday Future was founded by the notorious Chinese entrepreneur Jia Yueting, who finalized his personal bankruptcy filing in June 2020. The founder’s bankruptcy application was criticized by the media because multiple sources disclosed that he and his family still own a large amount of assets.
Jia is well known for establishing Leshi, a streaming media platform in China. But since then, the company began to expand into the manufacture of mobile phones, TVs, and even electric cars, which led to heavy debts.
The EV company has exhausted all $2 billion or so that Jia and Chinese real estate giant Evergrande put in over the years. Breitfeld has said that it needs $850 million in order to get to production. However, according to The Verge, at the end of July 2019 (the most recent data shared in Jia’s bankruptcy filings), Faraday Future had just $6.8 million in cash.
The CEO said Jia no longer owns stock in Faraday, which is more than half-owned by employees through an executive partnership and an employee stock ownership plan.
The combined company will be listed on Nasdaq under the ticker symbol "FFIE", Faraday Future and Property Solutions Acquisition Corp said.