Jia Yueting Xu Jiayin officially broke: FF said funding was not sealed and continued to do business in China and the United States.
澎湃 Reporting Chen Yuzhen
Preventing the founder of the American music industry Jia Yueting, he won a New Year's gift.
On December 31, 2018, Evergrande Health (00708.HK) announced that Evergrande Health and FF (Faraday Future) controlled by Jia Yueting had reached a restructuring agreement, and Evergrande will not continue to invest in FF. As regards the investment already made, Evergrande Health will make 32% of FF's preferred assets and will acquire FF assets in China.
All original agreements between the two parties will be resolved. Evergrande no longer needs to inject funds into FF and agree to lift the existing promise. Both parties also agree to revoke and waive all existing litigation, arbitration proceedings and all future litigation rights.
Faraday said in a later announcement that the new agreement is a consensus between Shiying Company (a wholly owned subsidiary of Evergrande Health) and FF based on the long-term interests of the company, shareholders, partners and users. The new agreement will adjust the ownership structure of FF and the corresponding rights of the relevant shareholders.
At the same time, the rights to the preservation of FF assets and the rights to finance their own funds are released, which can be used for the future debt financing and capital financing of the company. Following the signing of the new cooperation agreement, FF's capital financing and debt financing will move forward rapidly. With regard to the financing of own resources, many investors around the world expressed their intention to invest in FF. Several investors have begun due diligence: in terms of debt financing, since you have preserved all the preservation of assets, you are expected to move forward. The FF A pre-investment financing round was valued at 2.45 billion US dollars, and the post-investment valuation was adjusted to 3.25 billion US dollars.
Evergrande is the future investor of Faraday. In June 2018, the company became the largest shareholder in the future of Faraday. On November 30, 2017, Shi Ying signed a merger and subscription agreement with the original shareholder of FF (FF Top Holding Ltd., the real controller is Jia Yueting). Evergrande pledged to invest 2 billion US dollars in 3 years, representing 45% of the joint venture Smart King. At the current price, FF was valued at $ 4.4 billion. In May of 2018, the first investment of Evergrande of 800 million American dollars had been paid.
The sweet period of the two did not last long since, in October 2018, due to the problem of payment, the face became public, the conditions of capital injection and the complementary agreements of the New fund for Evergrande and the financing autonomy of FF, words of Evergrande and Jia Yueting. . Jia Yueting and FF appealed to Evergrande to the arbitration tribunal of Hong Kong, and Evergrande also became counteracted.
During this period, the capital flow of FF has been exhausted thanks to the initiative to turn the face with Kim Jongda, which caused FF to use a large number of layoffs and disputes to go through the difficult period, including many members of the founder team Nick Sampson. The executive chose to leave.
The last day of 2018, the disputes between Jia Yueting and Xu Jiayin finally came to an end. The FF, who was deeply in financial difficulties and could not be financed independently by Evergrande, has now gained a glow of life.
More importantly, Jia Yueting still maintains real control over FF. According to the restructuring announcement announced by Evergrande, Jia Yueting can repurchase Evergrande's 32% equity capital within 5 years.
And the price of Jia Yueting for repurchase rights in five years is different, from the first year to the fifth year: 600 million US dollars, 700 million US dollars, 800 million US dollars, 920 million US dollars and 1.05 millions of US dollars. In other words, if Jia Yueting can repurchase this part of the equity in the first year, there will be no need to make any additional return to Evergrande.
In the statement, Faraday mentioned in the future that he would like to express his sincere gratitude to Shiying Company (the subsidiary of Evergrande Health to invest in FF). FF has successfully completed the product development stage and achieved the last year. There are many pre-production cars on the bottom line, just one step away from the production car delivery. FF will continue to focus on delivering the product according to the established plans, maximizing the interests of shareholders, global suppliers and subscribers.
However, the difficulties facing Jia Yueting are still not small, especially because their individual is still burdened with huge debts.
At the beginning of December 2018, Yu Yun Capital, who had financial disputes with Jia Yueting, said that the Supreme Court of the Eastern Caribbean had made a decision in favor of the capital, allowing creditors to freeze Jia Yueting through its candidate and several layers of marginalized societies faraday. Actions maintained by Future (FF). The court also allowed the execution of a Chinese arbitration against Jia Yueting in the British Virgin Islands. In addition, LeTV repeatedly asked Jia Yueting to use FF-related assets to offset the debt with LeTV.
Annex: declaration on the signing of a new cooperation agreement between FF and Shiying Company
Recently, FF (Faraday Future Inc.) and Shiying Company investor formally signed a new cooperation agreement, terminated the original investment agreement, resolved the dispute and released the rights of asset preservation loan and stock financing.
In accordance with the signed agreement, FF's participation structure and the corresponding rights and interests are updated accordingly. FF asset preservation guarantee rights and capital financing rights can be issued, which can be used for the future debt financing and capital financing of the company. FF will continue to conduct business in the two main markets of China and the United States, and will guarantee the global management of the global FF operations through the strengthening of the dual-country strategy between China and the States United In order to give a better support to the long-term development of the company, FF decided to take the initiative to withdraw from the lawsuit.
Following the signing of the new cooperation agreement, FF's capital financing and debt financing will move forward rapidly. With regard to the financing of own resources, many investors around the world expressed their intention to invest in FF. Several investors have begun due diligence: in terms of debt financing, since you have preserved all the preservation of assets, you are expected to move forward. The FF A pre-investment financing round was valued at 2.45 billion US dollars, and the post-investment valuation was adjusted to 3.25 billion US dollars.
FF expressed sincere gratitude to Shiying Company for its strong support and help. FF has successfully completed the product development phase. In the last year, it has successfully launched several pre-production vehicles, leaving only one step away from the delivery of production cars. FF will continue to focus on delivering the product according to the established plans, maximizing the interests of shareholders, global suppliers and subscribers.
At the moment, the central projects of production and delivery of FF 91 continue actively promoting. Thanks to the global suppliers partners for their support for FF in recent years, especially in recent months. We will completely deal with the financing problems, meet product delivery commitments and work with suppliers partners, global investors and users to realize the ultimate vision of a shared intelligent travel ecosystem.
Faraday Future on December 31, 2018
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