Faraday Future Intelligent Electric Inc. (NASDAQ: FFAI) announced it signed a $45 million financing agreement with a US institutional investor, receiving the full amount on the same day as the agreement, according to a press release statement.

The financing consists of two notes: $15 million funded directly to the company and $30 million deposited into a controlled account. The first note carries a 9% annual interest rate and includes an original discount of $750,000. Redemptions may occur over an 18-month period following a six-month waiting period, subject to certain conditions.

The company stated the proceeds will support its embodied artificial intelligence ecosystem strategy, focusing on robotics business and delivery of its FX Super One vehicle. Faraday Future described this as its most favorable financing transaction in recent years from a dilution perspective.

Under the agreement, up to 5% of daily trading volume may be redeemed if the company's Class A shares trade at least 15% above the Nasdaq minimum price. The notes are subject to an issuance cap preventing the company from issuing shares exceeding 19.99% of outstanding Class A common stock without stockholder approval.

The company's management team is undergoing changes and restructuring, which will be disclosed publicly upon board approval. California State Treasurer Fiona Ma unveiled the FF embodied AI robotics education and innovation lab.

Faraday Future plans to propose a 45% increase in authorized shares at its annual stockholders meeting, adding approximately 140 million shares. The company also proposed a reverse stock split as a precautionary measure for Nasdaq compliance.