Faraday Future shares are trading lower after the company announced it filed for approval to issue a Class A common stock and/or warrants offering up to $300 million. The company also announced a reverse stock split and said it would defer the second delivery phase of its limited edition FF 91 2.0 Futurist Alliance.
Portfolio Pulse from Benzinga Newsdesk
Faraday Future has filed for approval to issue a Class A common stock and/or warrants offering up to $300 million. The company also announced a reverse stock split and will defer the second delivery phase of its limited edition FF 91 2.0 Futurist Alliance.
June 20, 2023 | 12:52 pm
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Faraday Future's stock is trading lower after announcing a $300 million stock/warrants offering, reverse stock split, and deferring FF 91 2.0 Futurist Alliance delivery.
The announcement of a $300 million stock/warrants offering may dilute the value of existing shares, leading to a negative impact on the stock price. Additionally, the reverse stock split and deferral of the FF 91 2.0 Futurist Alliance delivery may cause uncertainty among investors, further contributing to the stock's decline.
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