Faraday Future Nears US Listing After SEC Okays SPAC Merger

(Yicai Global) June 25 -- Faraday Future, a California-based electric vehicle startup founded by Chinese businessman Jia Yueting, is poised to list in the United States after the Securities and Exchange Commission approved its merger with a so-called blank check company.

The stockholders of Property Solutions Acquisition Corporation [NASDAQ: PSAC], a special purpose acquisition company, will hold a meeting on July 20 to vote on its merger with Faraday Future, the two firms said today. The combined business would start to trade on the Nasdaq the day after.

Faraday Future and PSAC announced in January that they had reached a final merger agreement. The estimated USD1 billion in funds secured through the combination will enable Faraday Future to mass produce its FF 91 model.

According to previously released information, the July 20 meeting will also consider the election of directors of the new company. Carsten Breitfeld, Faraday Future’s global chief executive, and business development team leader Matthias Aydt are expected to be on the board.

Special purpose acquisition companies are a fairly new vehicle for backdoor listings. SPACs have cash but no actual operations or other assets, and are listed on the US stock market. They choose companies with high development potential to conduct a reverse merger, allowing the target company to go public.

Jia, who also set up Beijing-based internet firm Leshi Holdings Group, fled China for the US in 2017 to escape mounting debts largely caused by an overambitious diversification drive. In September 2019, Faraday Future said that he had stepped down as chief executive.

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