(Bloomberg) -- Faraday Future Intelligent Electric Inc. will overhaul its board under an agreement with a large shareholder group, sending shares soaring as it ends a highly contentious battle that had brought litigation and allegations of death threats.
Susan Swenson, the electric-vehicle maker’s executive chair, will step down from all non-director positions and board committees when Faraday receives $13.5 million in funding, according to a regulatory filing Monday. She and another director, Brian Krolicki, will resign from the board entirely after the company secures another $85 million of financing commitments and receives $35 million.
Faraday will also add a 10th seat to its board until its annual meeting, at which point the size will be reduced to seven members -- with three of the new nominees selected by shareholder FF Top Holding LLC. As part of the agreement, which was reached Sept. 23, the investor group that collectively controls about 36% of shares will end its litigation against Faraday.
Its shares jumped 37% to $1.05 at 9:42 a.m. in New York. Faraday hasn’t announced a date for the annual meeting.
The shareholder group last week sued Faraday as part of its ongoing campaign to reshape the company and force Swenson and Krolicki off the board, saying in the lawsuit that the startup was “suffering from a crisis of leadership.” Faraday responded Sept. 22 with a statement detailing a “misinformation campaign” that had disrupted capital-raising efforts and claimed its leaders had received death threats.
Read more: EV Startup Faraday Cites Death Threats in Campaign Against Board
The automaker has said it believes FF Top and its parent are under the influence of co-founder Jia Yueting. He was sidelined in April after an internal probe led by Swenson concluded that managers misled investors on Jia’s day-to-day control and influence.
Faraday also announced Monday that it’s again pushing off the launch of its first electric vehicle until at least next year. The startup pledged when it went public in 2021 that it would begin production by July 2022, but has had to delay the debut because it needs more cash. As part of the plan to trim costs and conserve cash, it’s cutting staff and delaying payments.
The Los Angeles-based startup has also faced a number of other obstacles, including the delayed the launch of its first electric SUV in July, and the resignation of its auditor. The SEC has opened a probe into Faraday’s financial statements.
(Updates with share trading beginning in first paragraph)
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