By Michael Elkins
Faraday Future Corporation (NASDAQ: California-based electric vehicle startup) announced today that the company has reached a comprehensive resolution of its governance dispute with FF Top.
The deal comes after Faraday Future said last week that its leaders face death threats and a disinformation campaign as they seek to raise funds for its first vehicle.
A binding agreement with FF Top resolves a range of issues, including an agreement for the holding company to immediately withdraw the lawsuit against the FFIE Board of Directors, changes to the membership of the FFIE Board of Directors and the size of the Board of Directors, and some modifications to the Faraday Future shareholder agreement with FF Top.
As part of the agreement, Sue Swenson will step down from her role as the company’s CEO and chair of the board when the company receives $13.5 million in net funding proceeds.
“Resolving governance and related issues with our largest shareholder is a major achievement and an important step forward for Faraday Future and all of our stakeholders. We can now focus our efforts on building FF 91. We appreciate the efforts of all parties in getting to this point,” said Dr. Carsten Breitfeld, CEO. Faraday Future Corporation’s Global.
“FF Top is pleased that a solution has been found. We look forward to this opportunity for a fresh start and a brighter future for FFIE, and for all parties fulfilling their obligations under the Governance Agreement, in the best interests of Faraday Future and all of us,” said a spokesperson for FF Top.
FFIE shares jumped 38.41% in early trading on Monday.