Faraday Future Intelligent Electric Inc. (NASDAQ: FFAI) said it has amended its March 2025 financing to eliminate all warrant obligations tied to the round, reducing potential dilution by nearly 40%.
The amendment, disclosed in an August 21 SEC filing, removes the requirement to issue approximately 237,615 warrants, including 64,489 exercisable for Class A common stock linked to remaining closings under the March 21, 2025 Securities Purchase Agreement. It also cancels investors’ rights to receive warrants tied to roughly 173,126 shares linked to incremental warrant exercises.
The company said the move avoids nearly $4.75 million in potential equity issuance based on its current stock price and a $5 conversion floor. The elimination completes the removal of all warrants from the March 2025 financing, following a December 2025 termination that was disclosed in a January 2, 2026 Form 8-K.
Faraday Future’s Executive Chairman Jerry Wang described the amendment as a step toward restoring capital value. The company, founded in 2014 and headquartered in California, focuses on AI-driven robotics, including humanoid and bionic systems, alongside automotive applications.
The financing amendment was finalized after negotiations with all five investors from the March 2025 round. The agreement also includes partial transfers of investment commitments and adjustments to remaining closing terms, though specific financial terms of the transfers were not disclosed.
