Faraday Future Intelligent Electric Inc. (NASDAQ:FFIE) shares are trading higher premarket on Monday. On Sunday, the company disclosed securing around $30 million in cash financing commitments.

The financing comprises $7.5 million pre-funded in the fourth quarter of 2024 and $22.5 million in new cash commitments structured as unsecured convertible notes and warrants.

The Convertible Notes have a conversion price of $1.16 per share, while the Warrants are exercisable at $1.392 per share, subject to adjustments.

The underlying shares are currently unregistered and not immediately tradable. The financing remains subject to customary closing conditions.

The funds will support the development of Faraday X (FX). The company is targeting the mainstream U.S. EV market with plans to deliver its first two FX prototype mules to Los Angeles later this month.

Product development and testing will commence at the company's Hanford, CA, manufacturing facility.

FFIE CEO Matthias Aydt said, "The new funding lays a solid foundation for both FF and its new brand as the Company approaches the end of 2024 and enters the new year."

"I am optimistic about the opportunities that this new funding will bring, including supporting the ongoing production of our FF 91 2.0 and the growth of the FX brand."

Last month, the company announced the launch of a development phase after its first FX prototypes arrived at its headquarters.

Price Action: FFIE shares are up 12.07% at $1.3000 premarket at the last check Monday.

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Photo Courtesy of Faraday Future Intelligent Electric