Official announcement. Do we still have confidence?
$Faraday Future Intelligent Electric Inc. (FFIE.US)$ Hello everyone, we would like to address the major doubts and misunderstandings of retail investors, the misinterpretation by the media, and the guidance from malicious short-selling institutions after the release of FF's 2023 annual financial report yesterday, and provide some clarification and communication.
Why did the total share capital of FF displayed on the stock trading software increase tenfold overnight?
The technical reason for the increase in FF's total share capital from over 40 million shares to over 0.4 billion shares is that due to the delay in the release of the annual report, there was no disclosure of updated share capital information for nearly 5 months from the shareholders' meeting document at the beginning of this year until the release of the annual report yesterday. Therefore, the brokerage platform was unable to update the latest data, leading to the misconception that the stocks were diluted tenfold overnight.
In fact, these shares were gradually issued in multiple batches over the past four months. In fact, the number of shares held, the market value of the shares, and the proportion of shareholding have not changed before and after the release of the annual report.
Who are most of these stocks issued to? Why were these stocks issued?
As of May 10th this year, the company's total outstanding shares had reached nearly 0.4 billion, most of which were issued to the original institutional investors (referring to those who participated in this year's capital increase). The corresponding financing for these convertible bonds is mostly from at least six months prior to their conversion. The company had previously made the relevant overall disclosures.
As everyone knows, in the past six months, the company has experienced a severe shortage of funds. We couldn't even afford to pay the rent in the past few months, and we were almost evicted from the headquarters we bought when the company was founded. These original institutional investors have been continuously helping the company during this life-and-death moment for the company. After selling the previously issued stocks, they quickly invested most of the proceeds into the company, saving it from delisting and bankruptcy.
At the same time, the company has implemented a series of cost reduction measures, including across-the-board salary cuts and even minimum wages. Everyone in the company has made huge sacrifices to save the company. In addition, because of the issuance of the aforementioned stocks, we were able to join forces with the institutional investors to give the company a chance to be reborn today.
After the market trend that started on May 13th, did the company and its original institutional investors trade the nearly 0.4 billion total share capital that was issued by the company and already in circulation before May 10th?
First of all, the company did not participate in the above-mentioned trade. According to the financial report, the cash balance on May 23 was $5 million, which also proves that the company did not engage in stock arbitrage.
Furthermore, according to the company's understanding, the total outstanding shares of the company reached nearly 0.4 billion on May 10, and the existing institutional investors have sold all their shares into the secondary market circulation over the past few months. Therefore, after May 13, these investors could not have traded the aforementioned shares.
After May 13, the company saw many individual investors expressing their willingness to voluntarily lock positions to support the company. In order to cherish the hard-won confidence of these shareholders, the company made a firm decision to stand with all individual investors. After May 10, the company has not accepted any new convertible bonds.
Even in the future, unless we obtain approval from the shareholder meeting to increase the total authorized shares, there will be no further issuance of new shares.
In the future, we will continue to firmly protect the interests of individual investors under the premise of legality and compliance. We believe that with the concerted efforts of individual investors in China and the United States, we will definitely be able to overcome malicious short selling and jointly promote the success of FF, realize industrial transformation, and create the greatest value for shareholders.
Due to the urgent time, we will first clarify the above issues today, and then we will respond to a series of interactions and Q&A sessions regarding other issues. We also hope that individual investors will continue to ask us questions and provide suggestions.
Once again, from the bottom of our hearts, we thank every individual investor and shareholder who supports FF.
Why did the total share capital of FF displayed on the stock trading software increase tenfold overnight?
The technical reason for the increase in FF's total share capital from over 40 million shares to over 0.4 billion shares is that due to the delay in the release of the annual report, there was no disclosure of updated share capital information for nearly 5 months from the shareholders' meeting document at the beginning of this year until the release of the annual report yesterday. Therefore, the brokerage platform was unable to update the latest data, leading to the misconception that the stocks were diluted tenfold overnight.
In fact, these shares were gradually issued in multiple batches over the past four months. In fact, the number of shares held, the market value of the shares, and the proportion of shareholding have not changed before and after the release of the annual report.
Who are most of these stocks issued to? Why were these stocks issued?
As of May 10th this year, the company's total outstanding shares had reached nearly 0.4 billion, most of which were issued to the original institutional investors (referring to those who participated in this year's capital increase). The corresponding financing for these convertible bonds is mostly from at least six months prior to their conversion. The company had previously made the relevant overall disclosures.
As everyone knows, in the past six months, the company has experienced a severe shortage of funds. We couldn't even afford to pay the rent in the past few months, and we were almost evicted from the headquarters we bought when the company was founded. These original institutional investors have been continuously helping the company during this life-and-death moment for the company. After selling the previously issued stocks, they quickly invested most of the proceeds into the company, saving it from delisting and bankruptcy.
At the same time, the company has implemented a series of cost reduction measures, including across-the-board salary cuts and even minimum wages. Everyone in the company has made huge sacrifices to save the company. In addition, because of the issuance of the aforementioned stocks, we were able to join forces with the institutional investors to give the company a chance to be reborn today.
After the market trend that started on May 13th, did the company and its original institutional investors trade the nearly 0.4 billion total share capital that was issued by the company and already in circulation before May 10th?
First of all, the company did not participate in the above-mentioned trade. According to the financial report, the cash balance on May 23 was $5 million, which also proves that the company did not engage in stock arbitrage.
Furthermore, according to the company's understanding, the total outstanding shares of the company reached nearly 0.4 billion on May 10, and the existing institutional investors have sold all their shares into the secondary market circulation over the past few months. Therefore, after May 13, these investors could not have traded the aforementioned shares.
After May 13, the company saw many individual investors expressing their willingness to voluntarily lock positions to support the company. In order to cherish the hard-won confidence of these shareholders, the company made a firm decision to stand with all individual investors. After May 10, the company has not accepted any new convertible bonds.
Even in the future, unless we obtain approval from the shareholder meeting to increase the total authorized shares, there will be no further issuance of new shares.
In the future, we will continue to firmly protect the interests of individual investors under the premise of legality and compliance. We believe that with the concerted efforts of individual investors in China and the United States, we will definitely be able to overcome malicious short selling and jointly promote the success of FF, realize industrial transformation, and create the greatest value for shareholders.
Due to the urgent time, we will first clarify the above issues today, and then we will respond to a series of interactions and Q&A sessions regarding other issues. We also hope that individual investors will continue to ask us questions and provide suggestions.
Once again, from the bottom of our hearts, we thank every individual investor and shareholder who supports FF.
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...
听说这里遍地是黄金 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 听说这里遍地是黄金 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.