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Follow-up of rent arrears of Faraday's future headquarters

2024-05-27 Update From: AutoBeta NAV: AutoBeta > News >

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Today, Phoenix New Media Technology reported that Faraday reached an agreement with its landlord, Rexford Industries (Rexford Industrial), not to move out of its Los Angeles headquarters for the time being. It is worth mentioning that in February this year, Rexford Industries sued Faraday Future over rent arrears. At that time, Faraday was accused of defaulting on rent and related maintenance fees and taxes in January and February.

This time, under the latest agreement between the two sides, Faraday must pay 312524.46 US dollars in arrears by April 30 this year, while paying this month's rent of 305617.08 US dollars on or before April 15. In addition, next month's rent of $312419.63 will have to be paid on or before May 6. If Faraday fails to meet any of these terms in the future, Rexford Industries has the right to demand immediate payment within 48 hours. If Faraday does not pay in the future, Rexford Industries can expel Faraday Future. On the contrary, Faraday will pay on time in the future, and the lease between the two parties can expire in September 2025.

Interestingly, the building at Faraday's Los Angeles headquarters, originally owned by Faraday Future, was bought by Jia Yueting for $13.2 million in 2014. But due to a shortage of funds for Faraday's future, Jia Yueting sold it to Atlas Capital, a New York real estate company, and continued to rent the building back from Atlas Capital. He sold the assets and rented them back for use, which is also the routine operation of Jia Yueting in raising funds to build cars. In 2022, Atlas Capital sold the building to Rexford Industries for $64.3 million and took over the lease of FF.

In fact, this is not the first time Faraday has been revealed to be in arrears with rent in the future. In January, Faraday was also sued by BXP Realty, its San Jose office landlord, alleging that Faraday failed to pay rent in December and had an outstanding balance of $127311.16. At that time, in response to the news, Faraday said in the future that it was actively conducting friendly consultations with the landlords of the San Jose office and Gardiner headquarters in order to resolve the current problem as soon as possible. There has also been news recently that Faraday was due to submit regulatory documents on April 2 in the future, but the company delayed the submission of its 2023 annual financial report, in part because Faraday delayed payments to third-party audit consultants in the future. From these rent arrears, delays in payment and other matters, it is not difficult to see that Faraday is still short of funds in the future.

Recently, Faraday has not only faced financial pressure in the future, but also received warnings of delisting. It is understood that Faraday's future share price has been below $1 from November 9 to December 27 last year, in violation of Nasdaq listing rules. According to Nasdaq listing rules, Faraday will need to close at least $1.00 per share for at least 10 consecutive trading days in the next 180 days, that is, before June 25 this year, before it can continue to be listed on the Nasdaq capital market. If Faraday does not meet the minimum purchase price by June 25 this year, Nasdaq will issue a delisting notice to it.

The matter here is not done yet, and Faraday will recall all vehicles delivered since 2023 because of airbag warning lights.

After 10 years of car construction, Faraday has spent a huge amount of money in the future, but only 11 cars have been delivered in terms of delivery. But even if the quantity delivered is small, Jia Yueting still believes in his dream of building a car.

Today, Jia Yueting also released a video saying that he will not give up and will not give in, dedicated to all the futurist of Faraday's future. Thank you for your support for Faraday's future. It's a good thing to have a dream, but with the increasingly fierce competition for new energy vehicles, Faraday needs a steady stream of funding in order to survive in the future. It is very difficult to get external funding based solely on double-digit deliveries.

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