By Michael Elkins
California-based electric vehicle startup, Faraday Future (NASDAQ:FFIE) announced today that the company has reached a comprehensive resolution to its governance dispute with FF Top.
The agreement comes after Faraday Future said last week that its company leaders were facing death threats and a misinformation campaign as they sought to raise money for the production of its first vehicle.
A binding agreement with FF Top resolves a range of issues, including an agreement for the holding company to withdraw its lawsuit against the FFIE board immediately, changes in FFIE board membership and board size, and certain amendments to Faraday Future’s Shareholder Agreement with FF Top.
As part of the agreement, Sue Swenson will step down from her role as Executive Chairperson of the company and Chairperson of the Board upon the company receiving $13.5 million in net financing proceeds.
"The resolution of governance and related issues with our largest shareholder is a major accomplishment and an important step forward for Faraday Future and all our stakeholders. We can now focus our effort on building the FF 91. We appreciate all parties’ efforts in reaching this agreement," said Dr. Carsten Breitfeld, Global CEO of Faraday Future.
"FF Top is glad that a resolution has been reached. We look forward to this opportunity for a new start and brighter future for FFIE, and to all parties performing their obligations under the governance agreement, to achieve the best interests of Faraday Future and all shareholders," said a spokesperson from FF Top.
Shares of FFIE jumped 38.41% in early trading on Monday.