Official announcement. Do you still have confidence
$Faraday Future Intelligent Electric Inc. (FFIE.US)$ Hello everyone, we would like to clarify and communicate about major doubts and misunderstandings from retail investors, media misinterpretations, and guidance from malicious shorting agencies after the release of FF's 2023 earnings report yesterday.
1. Why did the stock trading software show that FF's total share capital increased tenfold overnight?
Regarding the increase in the total share capital of FF from more than 40 million shares to more than 400 million shares, the technical reason is that due to delays in the publication of the annual report, FF did not disclose the updated share capital in the nearly 5 months from the shareholders' meeting documents at the beginning of this year until the publication of the annual report yesterday, so the brokerage platform was unable to update the latest data, causing everyone to misunderstand that the stock was “diluted tenfold overnight.”
In fact, these shares have all been gradually issued in multiple batches over the past four months. In fact, there has been no change in the number of shares held by everyone, the market value of shares held, and the proportion of shares held before and after the publication of the annual report.
2. Who are most of these shares issued to? Why are these shares being issued?
As of May 10 this year, the company's total tradable shares have reached nearly 400 million, and most of them have been distributed to the original institutional investors (specifically those that participated in this year's increase). Most of the financing corresponding to these share transfers is convertible bonds that they invested at least six months before the share conversion, and the company has also made relevant general disclosures before.
Everyone knows that in the past six months, the company has experienced a very difficult shortage of capital. We couldn't even pay our rent in recent months, and we almost got kicked out of the company headquarters we bought when we founded it. These original institutional investors continued to help the company during the life and death of the company. After selling the shares issued by the previous company, they quickly invested most of the stock sales proceeds into the company to save the company from delisting and bankruptcy.
At the same time, the company has also adopted a series of cost reduction measures, including salary cuts and even minimum wages for all employees. Everyone in the company made huge sacrifices to save the company. In addition, because the above shares were issued before, everyone was able to work together with investors, and the company had the opportunity to reinvent itself today.
3. After this round of trading, which began on May 13, did the company and the company's original institutional investors trade the nearly 400 million total share capital issued by the company before May 10 and already in circulation?
First, the company did not participate in the above transaction. According to financial reports, the cash balance on May 23 was 5 million US dollars, which also confirms that the company did not issue stock arbitrage.
Second, according to the company's understanding, the company's total tradable shares reached nearly 400 million on May 10, and the original institutional investors have sold all of their shares into secondary market circulation in the past few months, so it is impossible for these investors to trade the aforementioned shares after May 13.
After May 13, I saw that many retail investors expressed their willingness to spontaneously lock up positions to support the company. In order to cherish the hard-won recovery in shareholders' confidence, the company must always stand firm with all retail investors when making decisions. After May 10, the company did not accept any new share transfers.
Even in the future, no new shares will be issued unless we obtain approval from the shareholders' meeting to increase the total number of authorized shares.
In the future, we will continue to protect the interests of retail investors more firmly under the premise of legal compliance. I believe that with the concerted efforts of retail investors in China and the US, we will definitely be able to overcome malicious shorting, jointly promote the success of FF, achieve industrial transformation, and create maximum value for shareholders.
Due to the tight schedule, let's first clarify the above questions today. Next, we will have a series of interactions and answers on other questions. We also hope that retail investors will continue to ask us questions and suggestions.
Once again, I would like to thank every retail investor and shareholder who supports FF from the bottom of my heart.
1. Why did the stock trading software show that FF's total share capital increased tenfold overnight?
Regarding the increase in the total share capital of FF from more than 40 million shares to more than 400 million shares, the technical reason is that due to delays in the publication of the annual report, FF did not disclose the updated share capital in the nearly 5 months from the shareholders' meeting documents at the beginning of this year until the publication of the annual report yesterday, so the brokerage platform was unable to update the latest data, causing everyone to misunderstand that the stock was “diluted tenfold overnight.”
In fact, these shares have all been gradually issued in multiple batches over the past four months. In fact, there has been no change in the number of shares held by everyone, the market value of shares held, and the proportion of shares held before and after the publication of the annual report.
2. Who are most of these shares issued to? Why are these shares being issued?
As of May 10 this year, the company's total tradable shares have reached nearly 400 million, and most of them have been distributed to the original institutional investors (specifically those that participated in this year's increase). Most of the financing corresponding to these share transfers is convertible bonds that they invested at least six months before the share conversion, and the company has also made relevant general disclosures before.
Everyone knows that in the past six months, the company has experienced a very difficult shortage of capital. We couldn't even pay our rent in recent months, and we almost got kicked out of the company headquarters we bought when we founded it. These original institutional investors continued to help the company during the life and death of the company. After selling the shares issued by the previous company, they quickly invested most of the stock sales proceeds into the company to save the company from delisting and bankruptcy.
At the same time, the company has also adopted a series of cost reduction measures, including salary cuts and even minimum wages for all employees. Everyone in the company made huge sacrifices to save the company. In addition, because the above shares were issued before, everyone was able to work together with investors, and the company had the opportunity to reinvent itself today.
3. After this round of trading, which began on May 13, did the company and the company's original institutional investors trade the nearly 400 million total share capital issued by the company before May 10 and already in circulation?
First, the company did not participate in the above transaction. According to financial reports, the cash balance on May 23 was 5 million US dollars, which also confirms that the company did not issue stock arbitrage.
Second, according to the company's understanding, the company's total tradable shares reached nearly 400 million on May 10, and the original institutional investors have sold all of their shares into secondary market circulation in the past few months, so it is impossible for these investors to trade the aforementioned shares after May 13.
After May 13, I saw that many retail investors expressed their willingness to spontaneously lock up positions to support the company. In order to cherish the hard-won recovery in shareholders' confidence, the company must always stand firm with all retail investors when making decisions. After May 10, the company did not accept any new share transfers.
Even in the future, no new shares will be issued unless we obtain approval from the shareholders' meeting to increase the total number of authorized shares.
In the future, we will continue to protect the interests of retail investors more firmly under the premise of legal compliance. I believe that with the concerted efforts of retail investors in China and the US, we will definitely be able to overcome malicious shorting, jointly promote the success of FF, achieve industrial transformation, and create maximum value for shareholders.
Due to the tight schedule, let's first clarify the above questions today. Next, we will have a series of interactions and answers on other questions. We also hope that retail investors will continue to ask us questions and suggestions.
Once again, I would like to thank every retail investor and shareholder who supports FF from the bottom of my heart.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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103723015 : So what action will there be?
103440782 : you know some people just want to see what they want to see. this piece dont matter. trading like anything is also alot of stomach feeling, faith, psychology. Also imo, stocks has no logics. even good earnings can dip in stock price. so...
美滋滋 OP : Should have wanted to be empty. Chop it on both sides
能涨不能涨 Leo坦克 :
统一六国 : Seriously, I really don't dare to go to the bottom of FF now. I sold 10,000 shares for 4 cents, and sold more than 1.13 yuan at a total cost. The rest were still 12,333 shares and kept 10,000 shares. The day before yesterday, when I returned 1,000 shares with 1 cent 7, I never dared to buy them again. Another account, more than 200,000 shares of FF has basically returned to zero. Now I'm just watching the drama with 11,000 shares and I'll keep 1,000 shares. 10,000 shares will be delisted along with it, or heaven. Anyway, I'm watching it decline now...
103723015 美滋滋 OP : Take a look at this post.
MayFlower : It's been several months, so why hasn't it been clarified until today? It's already causing chaos.
Moonlightvision : Dont use the word "unless" to scare people away, you are the one risking your company if you are not certain with your statement.
28282828 : And then someone keep repeating saying that futu is a scam. Looks like they know nothing
103723015 Moonlightvision : This is unless it's a word to push away responsibility.