Faraday Future Intelligent Electric Inc. (NASDAQ: FFAI) (\u201cFaraday Future\u201d, \u201cFF\u201d or \u201cCompany\u201d), a California-based global shared intelligent electric mobility ecosystem company, and Qualigen Therapeutics, Inc. (NASDAQ: QLGN) (“QLGN”), jointly announced that they have entered into a securities purchase agreement (the \u201cAgreement\u201d) for a private investment in public equity (PIPE) in QLGN\u2019s common stock and preferred stock, and will start a crypto and web3-related business.<\/p>\n\n\n\n
Upon completion of the required stockholder approval process, it is expected that QLGN will rebrand as CXC10, fully focusing on its three growth engines in crypto and ecosystem buildup for Web3.<\/p>\n\n\n\n
The PIPE financing is being led by Faraday Future and its Founder and Global Co-CEO YT Jia, together with other investors including SIGN Foundation, a blockchain technology company backed by Binance Labs, Sequoia Capital (US, India, China), IDG, and Circle, building software infrastructure for governments and the next generation of capital markets. The total financing is approximately $41 million. Jerry Wang, the President of FF, also participated in this financing.<\/p>\n\n\n\n
Under the terms of the Agreement, Faraday Future has agreed, subject to closing conditions, to invest approximately $30 million in QLGN at an effective price of $2.246 per share, representing beneficial ownership of approximately 55% of QLGN\u2019s outstanding common stock. In addition, YT Jia intends to personally invest approximately $4 million, representing ownership of about 7% of QLGN\u2019s common stock. As a cornerstone investor, YT Jia has also agreed to a two-year voluntary lock-up on his personal investment. QLGN already obtained majority shareholder support of this transaction via voting support agreement.<\/p>\n\n\n\n
At the closing of this transaction, YT Jia will serve as a Chief Advisor of QLGN, Jerry Wang will be appointed as Co-CEO of QLGN, and FF CFO Koti Meka will be appointed as CFO. FF will also have the right to nominate two of the five independent directors. If the proposal is approved at the stockholders\u2019 meeting, FF’s nomination rights could increase to four of the seven seats. FF will also have participation rights as to QLGN\u2019s future financing.<\/p>\n\n\n\n
Following completion of the PIPE, Faraday Future and its Founder and Global Co-CEO YT Jia are expected to beneficially own over 62% of QLGN\u2019s outstanding common stock, based on shares outstanding as of the pricing date, giving pro forma effect to the transaction.<\/p>\n\n\n\n
This structure will allow FFAI to concentrate on advancing its EV strategy while QLGN can focus on driving growth in crypto and Web3, creating strategic synergies, unlocking new financing channels, and maximizing stockholder value without additional dilution to FFAI stockholders for the crypto-related business.<\/p>\n\n\n\n
\u201cThis strategic investment represents an important milestone in our evolution,\u201d said YT Jia, Founder and Global Co-CEO of Faraday Future. \u201cI believe that FFAI will truly become a company powered by Dual Flywheel synergy and Dual Bridge empowerment\u2014connecting EAI with crypto, and bridging Web2 with Web3.\u201d<\/p>\n\n\n\n
\u201cThis is a very exciting day for all stakeholders of Qualigen Therapeutics,\u201d said Kevin A. Richardson, CEO of QLGN.\u201d The company will be embracing the new economy and technology which will reshape the future. The board unanimously voted to move forward with this transformative transaction and stand behind the leadership FF brings to our company.\u201d<\/p>\n\n\n\n
Univest Securities is the sole placement agent in this transaction. FF is represented by Pryor Cashman and QLGN is represented by Lucosky Brookman. QLGN also hired a capital market advisory to support this transaction and future capital-market-related activities.<\/p>\n","protected":false},"excerpt":{"rendered":"
Faraday Future Intelligent Electric Inc. (NASDAQ: FFAI) (\u201cFaraday Future\u201d, \u201cFF\u201d or \u201cCompany\u201d), a California-based global shared intelligent electric mobility ecosystem company, and Qualigen Therapeutics, Inc. (NASDAQ: QLGN) (“QLGN”), jointly announced that they have entered into a securities purchase agreement (the \u201cAgreement\u201d) for a private investment in public equity (PIPE) in QLGN\u2019s common stock and preferred …<\/p>\n","protected":false},"author":2,"featured_media":10133,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[17],"tags":[9,1310,1291],"class_list":["post-10132","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy","tag-business","tag-general","tag-investment"],"yoast_head":"\n