Faraday Future completes $41 million investment in Qualigen Therapeutics

NEW YORK - Faraday Future Intelligent Electric Inc. (NASDAQ:FFAI), currently valued at $190.64 million and identified as undervalued by InvestingPro analysis, has completed a $41 million strategic investment in clinical-stage cancer treatment developer Qualigen Therapeutics, Inc. (NASDAQ:QLGN), according to a statement released Tuesday.

The investment gives Faraday Future approximately 55% ownership of Qualigen’s pro forma common stock. Faraday Future contributed about $30 million of the total investment, while the company’s Founder and Global Co-CEO YT Jia invested an additional $4 million, securing roughly 7% ownership which he has committed to lock up for two years. InvestingPro data shows the company faces liquidity challenges with a current ratio of 0.34, making this investment particularly significant for its strategic direction.

Additional investors in the transaction included SIGN Foundation, a blockchain technology company backed by Binance Labs, Sequoia Capital, IDG, and Circle.

The strategic investment, first announced during Faraday Future’s annual 919 Futurist Day on September 19, represents what the company describes as a milestone in executing its business strategy.

Univest Securities, LLC acted as the sole placement agent for the transaction.

Qualigen Therapeutics focuses on developing treatments for adult and pediatric cancer, including its investigational QN-302 compound, which is a small molecule selective transcription inhibitor, and a family of Pan-RAS oncogene protein-protein interaction inhibitor small molecules.

Faraday Future, founded in 2014, is a California-based electric mobility company known for its FF 91 model and is working on introducing mass production models with similar technology at lower price points. The company’s stock has faced significant headwinds, declining nearly 53% over the past year, though analysts anticipate substantial sales growth in the current year according to InvestingPro, which offers 20+ additional insights about the company’s financial health and market position in its comprehensive Pro Research Report.

The information in this article is based on a press release statement from Univest Securities.

In other recent news, Qualigen Therapeutics has successfully closed a $41 million private investment in public equity (PIPE) financing, marking a significant development for the company. This financing was led by Faraday Future Intelligent Electric, which invested $30 million, acquiring approximately 55% of Qualigen’s common stock on a pro forma basis. The investment signifies a strategic shift for Qualigen as it plans to rebrand as CXC10 and focus on Web3 and crypto-related ventures. Additionally, Faraday Future’s Founder and Global Co-CEO, YT Jia, contributed an extra $4 million, securing about 7% ownership with a commitment to a two-year lockup period. This investment was part of a broader initiative involving other prominent investors, including SIGN Foundation, backed by notable firms such as Binance Labs and Sequoia Capital. The announcement of Faraday Future’s investment was made during their annual 919 event in Los Angeles. Meanwhile, YT Jia has also made further investments in Faraday Future stock, purchasing approximately $180,000 worth as part of a previously adopted trading plan. These recent developments highlight significant strategic moves by both Qualigen Therapeutics and Faraday Future.

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