Faraday Future Terminates Incremental Warrants Tied to $21.0M Notes

What Happened
Faraday Future Intelligent Electric Inc. announced on its Form 8-K (filed Sept 3, 2026) that on August 31, 2026 it entered into incremental warrant termination agreements with holders of certain incremental warrants issued under a March 21, 2025 securities purchase agreement (the “March SPA”). Under the agreements, the Company and the warrant holders mutually agreed to terminate incremental warrants that were exercisable for (i) convertible promissory notes with an aggregate principal amount of $21,021,369 (convertible into Class A common stock), (ii) common stock purchase warrants, and (iii) shares of the Company’s Series B preferred stock. The Company issued a press release about the agreements on September 1, 2026.

Key Details

• Date of agreements: August 31, 2026; press release issued September 1, 2026.
• Dollar amount involved: convertible promissory notes with aggregate principal of $21,021,369.
• Instruments terminated: incremental warrants exercisable into the noted convertible promissory notes, Common Stock purchase warrants, and Series B preferred stock.
• Related filings: termination agreement filed as Exhibit 10.1 and press release as Exhibit 99.1 to the 8-K.

Why It Matters
The mutual termination cancels the specific incremental warrants and their related conversion/exercise rights described in the March SPA. For investors, that means those particular potential future issuances — the $21.0M of convertible-note conversions, associated common-stock warrants, and Series B preferred share conversions tied to these warrants — will not occur under these terminated instruments. This removes those specific contingent claims on the company’s equity and debt that had existed under the incremental warrants.