Faraday Future (FF) and Qualigen Therapeutics (QLGN), a biopharmaceutical company, recently announced a strategic partnership. The two parties signed a securities purchase agreement, under which FF will invest approximately $41 million (approximately RMB 292 million) in QLGN's common and preferred shares through a private placement (PIPE) offering. This partnership marks Faraday Future's official entry into the crypto and Web3 sectors. Following shareholder approval, QLGN will be renamed CXC10, fully focusing on crypto and Web3 ecosystem development.
The investment was led by Faraday Future and its founder and co-CEO, Jia Yueting. Other investors include the SIGN Foundation, a blockchain technology company backed by top institutions such as Binance Labs and Sequoia Capital. Jia Yueting will personally invest approximately $4 million (approximately RMB 28.46 million), representing a 7% stake, which he will voluntarily lock up for two years. This investment is directly related to his debt repayment plan. Jia Yueting announced that he would establish a second creditor trust, using 50% of his equity incentives as co-CEO and half of the proceeds from this investment to repay remaining debts under Chinese law, with the remaining half to be reinvested in the car manufacturing business.
Analysts point out that this partnership is a key step in Faraday Future's diversification strategy, allowing it to quickly enter the Web3 market through a backdoor listing on QLGN. Jia Yueting's dual actions of personal investment and debt repayment commitments not only demonstrate the continuity of his business strategy but also attempt to improve his credibility in the Chinese market.
