Cash-strapped electric vehicle (EV) maker Faraday Future said Tuesday that it received $225 million in bridge financing from the U.S.-based financial services firm Birch Lake Fund Management, extending the lifeline of the carmaker struggling to bring a model to the market.
The bridge financing includes senior secured financing of $75 million and a vendor trust of as much as $150 million to support the supply chain, Faraday said in a statement on its website.
The latest funding will support Faraday’s completion and launch of its flagship FF 91 EV, continue development of the mass-market FF 81 for launch in 2021, and support of its vendor and supply chains, the company said.
Faraday also said it will launch equity capital-raising of as much as $1.25 billion to be completed early in the third quarter of this year with Stifel Nicolaus & Co. as financial adviser.
Faraday, founded by China’s debt-ridden fugitive businessman Jia Yueting, has struggled to keep afloat and deliver vehicles to the market. In March, Faraday got a $600 million injection from mobile gaming company The9 Limited, after it parted ways with Chinese real estate giant Evergrande.
Jia, who founded tech conglomerate LeEco, has remained abroad after the company was hit by billions of dollars of debt woes. China’s securities regulator Monday announced a formal investigation of Jia and his Leshi Internet Information & Technology Corp. for information disclosure violations.