Faraday Future Intelligent Electric Inc. (NASDAQ: FFAI) (“Faraday Future”, “FF” or “the Company”), a California-based global shared intelligent electric mobility ecosystem firm, together with Qualigen Therapeutics, Inc. (NASDAQ: QLGN) (“QLGN”), today announced that they have entered into a securities purchase agreement (the “Agreement”) for a private investment in public equity (PIPE) in QLGN’s common and preferred shares, with plans to launch a new crypto and Web3-focused business.
Subject to shareholder approval, QLGN is expected to rebrand as CXC10 and concentrate fully on its three core growth engines in crypto and Web3 ecosystem development.
The PIPE financing totals approximately $41 million and is led by Faraday Future and its Founder and Global Co-CEO, YT Jia, alongside other investors including SIGN Foundation, a blockchain company supported by Binance Labs, Sequoia Capital (US, India, China), IDG, and Circle, which builds software infrastructure for governments and the next generation of capital markets. Jerry Wang, President of FF, also participated in the financing.
According to the Agreement, Faraday Future has committed, subject to closing conditions, to invest around $30 million in QLGN at an effective price of $2.246 per share, representing a 55% beneficial stake in QLGN’s outstanding common stock. YT Jia also intends to make a personal investment of $4 million, equating to approximately 7% of QLGN’s common stock. As a cornerstone investor, he has agreed to a two-year voluntary lock-up on this personal investment. QLGN has already secured majority shareholder backing for the transaction through a voting support agreement.
At completion, YT Jia will become Chief Advisor to QLGN, Jerry Wang will be appointed Co-CEO, and FF CFO Koti Meka will assume the role of CFO. Faraday Future will gain the right to nominate two of QLGN’s five independent directors, with the potential to nominate four of seven seats if the proposal is approved at the shareholders’ meeting. FF will also hold participation rights in future QLGN financings.
Following the PIPE transaction, Faraday Future and YT Jia are expected to beneficially own more than 62% of QLGN’s outstanding common stock, based on shares outstanding at the pricing date, on a pro forma basis.
The structure of the transaction enables FFAI to remain focused on advancing its electric vehicle strategy while QLGN drives growth in crypto and Web3. The arrangement is designed to create strategic synergies, open new financing opportunities, and maximise shareholder value without diluting FFAI investors for the crypto venture.
“This strategic investment represents an important milestone in our evolution,” said YT Jia, Founder and Global Co-CEO of Faraday Future. “I believe that FFAI will truly become a company powered by Dual Flywheel synergy and Dual Bridge empowerment—connecting EAI with crypto, and bridging Web2 with Web3.”
“This is a very exciting day for all stakeholders of Qualigen Therapeutics,” said Kevin A. Richardson, CEO of QLGN. “The company will be embracing the new economy and technology which will reshape the future. The board unanimously voted to move forward with this transformative transaction and stand behind the leadership FF brings to our company.”
Univest Securities acted as sole placement agent for the transaction. Faraday Future was advised by Pryor Cashman, while QLGN was represented by Lucosky Brookman. QLGN also engaged a capital markets advisory to support this deal and related future activities.