LOS ANGELES - Faraday Future Intelligent Electric Inc. (NASDAQ: NASDAQ:FFIE), an electric vehicle and technology company, has declared a reverse stock split of its shares at a ratio of 1-for-3, set to take effect after market close on February 29, 2024. The company's common stock is anticipated to commence trading on a split-adjusted basis from the opening of the market on March 1, 2024.
The decision for the reverse stock split follows the approval from the company's stockholders during the Special Meeting held on February 5, 2024. This action will consolidate every three shares of issued and outstanding common stock into one share.
The reverse stock split aims at reducing the number of shares of common stock available and proportionally adjusts the conversion and exercise prices of the company's outstanding convertible securities, stock options, restricted stock units, and private warrants.
Post-split, the company's Class A common stock will have a new CUSIP number, 307359 703, and will continue to be listed on the Nasdaq Capital Market under the ticker symbol FFIE. The Class B common stock will also receive a new CUSIP number, 307359 802.
The publicly traded warrants of Faraday Future, symbolized as FFIEW, will remain unchanged in CUSIP number but will be adjusted in terms of the number of shares of Class A Common Stock they are exercisable for, with every three warrants becoming exercisable for one share at a price of $2,760 per share.
There will be no issuance of fractional shares as a result of the reverse stock split. Instead, shareholders entitled to a fractional share will receive one full share of the post-reverse stock split common stock. This adjustment will affect all shareholders proportionally and will not alter any shareholder's percentage ownership of the company's common stock.
Continental Stock Transfer & Trust Company has been chosen by Faraday Future to act as the exchange agent for the reverse stock split. Shareholders who hold their shares through a bank, broker, or nominee will not need to take any action as their holdings will automatically reflect the reverse stock split, subject to individual broker processes.
This information is based on a press release statement and further details about the reverse stock split and the related Charter amendment can be found in the definitive proxy statement filed with the Securities and Exchange Commission on January 10, 2024, and supplemented on January 24, 2024.
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