Faraday Future raises $25M via convertible notes with aggressive anti-dilution terms

Filed May 18, 2026 · Period ending May 15, 2026 · ~1 min read

Key Changes

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  Closed $25M convertible note financing with 8% interest, convertible to common stock at prices subject to full-ratchet anti-dilution protection that resets conversion price downward if company issues shares below current conversion price.

  Item 1.01 verify on EDGAR →
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  Notes include Floor Breach Event trigger: if stock trades below $0.15528 on 5+ days within any 10-day period, noteholders can demand full cash redemption within 5 trading days unless company cures by lowering floor or stock recovers.

  Item 1.01 verify on EDGAR →
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  Nasdaq exchange cap limits conversions to 19.99% of outstanding shares without stockholder approval; if cap is reached due to price declines and anti-dilution adjustments, company may face forced cash redemptions.

  Item 1.01 verify on EDGAR →