Faraday Future Announces Strategic $41 Million Investment in Qualigen Therapeutics, Inc. (NASDAQ: QLGN) f for Crypto Business Through PIPE Transaction

Rhea-AI Summary

Faraday Future (NASDAQ: FFAI) has announced a strategic $41 million PIPE investment in Qualigen Therapeutics (NASDAQ: QLGN), marking a significant shift into crypto and Web3 business. The investment, led by FF and its Founder YT Jia, includes a $30 million investment from FF at $2.246 per share (55% ownership) and a $4 million personal investment from YT Jia (7% ownership).

Following the transaction, FF and YT Jia will control approximately 62% of QLGN's outstanding shares. The deal includes significant management changes, with YT Jia becoming Chief Advisor, Jerry Wang appointed as Co-CEO, and FF gaining board nomination rights. The structure allows FF to maintain its EV focus while expanding into crypto through QLGN.

Positive

• FF secures controlling stake (62%) in QLGN through $41M strategic investment
• Deal structure allows crypto expansion without diluting FFAI shareholders
• Strong backing from notable investors including Binance Labs, Sequoia Capital
• YT Jia commits to 2-year lock-up period on personal investment
• FF gains significant control with board nomination rights and management positions

Negative

• Significant shift from QLGN's core business into unrelated crypto sector
• Major ownership dilution for existing QLGN shareholders
• Transaction requires stockholder approval for full board control
• Potential integration and transition risks in new crypto venture

Insights

Financial Analyst

Faraday Future's $41M investment in Qualigen represents a strategic pivot into crypto, gaining majority control while separating crypto ventures from its core EV business.

This transaction represents a significant strategic shift for both Faraday Future (FFAI) and Qualigen Therapeutics (QLGN). FFAI, primarily an EV company, is injecting $41 million into QLGN through a PIPE transaction, effectively acquiring 55% ownership of QLGN shares at $2.246 per share. FFAI's founder YT Jia will personally invest an additional $4 million for approximately 7% ownership, bringing their combined control to over 62% of QLGN.

The structure of this deal is particularly notable. Rather than developing crypto capabilities in-house, FFAI is using QLGN as a separate vehicle for crypto and Web3 initiatives. This corporate structure allows FFAI to maintain its focus on electric vehicles while gaining exposure to the crypto sector through majority ownership of QLGN, without diluting existing FFAI shareholders. The transaction includes significant governance changes, with FFAI gaining substantial board representation and installing its executives in key positions at QLGN.

The participation of other investors, including SIGN Foundation (backed by Binance Labs, Sequoia Capital, IDG, and Circle), suggests broader institutional interest in this convergence of traditional public companies with crypto ventures. The two-year lock-up period for YT Jia's personal investment indicates long-term commitment to this strategic direction.

This deal effectively transforms QLGN from its previous focus into a crypto/Web3 entity, representing a complete strategic pivot for the smaller company. For FFAI, it creates what they're calling a "Dual Flywheel" business model spanning both EV technology and cryptocurrency, potentially allowing for cross-sector innovation while containing financial and regulatory risks associated with crypto ventures within a separate public entity.

LOS ANGELES and CARLSBAD, Sept. 19, 2025 (GLOBE NEWSWIRE) -- Faraday Future Intelligent Electric Inc. (NASDAQ: FFAI) (“Faraday Future”, “FF” or “Company”), a California-based global shared intelligent electric mobility ecosystem company, and Qualigen Therapeutics, Inc. (NASDAQ:QLGN) ("QLGN"), jointly announced that they have entered into a securities purchase agreement (the “Agreement”) for a private investment in public equity (PIPE) in QLGN’s common stock and preferred stock, and will start a in Crypto and web3-related business.

The PIPE financing is being led by Faraday Future and its Founder and Global Co-CEO YT Jia, together with other investors including SIGN Foundation, a blockchain technology company backed by Binance Labs, Sequoia Capital (US, India, China), IDG, and Circle, building software infrastructure for governments and the next generation of capital markets, with a peak token valuation of $1.35 billion. The total financing is for approximately $41 million. Jerry Wang, the President of FF, also participated in this financing.

Under the terms of the Agreement, Faraday Future has agreed, subject to the closing conditions, to invest approximately $30 million in QLGN at an effective price of $2.246 per share, representing beneficial ownership of approximately 55% of QLGN’s outstanding common shares. In addition, YT Jia intends to personally invest approximately $4 million, representing ownership of about 7% of QLGN’s common stock. As a cornerstone investor, YT Jia has also agreed to a two-year lock-up on his personal investment.

At the closing of this transaction, YT Jia will serve as a Chief Advisor of QLGN, Jerry Wang will be appointed as Co-CEO of QLGN, and FF CFO Koti Meka will be appointed as CFO. FF will also have the right to nominate two of the five independent directors. If the proposal is approved at the stockholders’ meeting, FF's nomination rights could increase to four of the seven seats. FF will also have participation rights as to QLGN’s future financing.

Following completion of the PIPE and the stockholder approval, Faraday Future and its Founder and Global Co-CEO YT Jia, are expected to beneficially own over 62% of QLGN’s outstanding common stock, based on shares outstanding as of the pricing date, giving pro forma effect to the transaction.

This structure will allow FFAI to concentrate on advancing its EV strategy while QLGN can focus on driving growth in crypto and Web3, creating strategic synergies, unlocking new financing channels, and maximizing stockholder value without additional dilution to FFAI stockholders for the crypto-related business.

“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 Richardson, CEO of Qualigen Therapeutics stated. “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 value FF brings to our company.”

Univest Securities, LLC served as sole placement agent in this transaction. FF is represented by Pryor Cashman and QLGN is represented by Lucosky Brookman. QLGN also retained a capital market advisor in connection with this transaction and future capital-market-related activities.

ABOUT FARADAY FUTURE

Faraday Future is a California-based global shared intelligent electric mobility ecosystem company. Founded in 2014, the Company’s mission is to disrupt the automotive industry by creating a user-centric, technology-first, and smart driving experience. Faraday Future’s flagship model, the FF91, exemplifies its vision for luxury, innovation, and performance. The new FX strategy aims to introduce mass production models equipped with state-of-the-art luxury technology similar to the FF 91, targeting a broader market with middle-to-low price range offerings. For more information, please visit https://www.ff.com/us/.

By registering for this event, attendants agree to provide certain personal information, which will be used to manage their participation in the event and communicate important updates. Faraday Future values your privacy and will handle provided personal information in accordance with its privacy policy. To learn more about how FF collects, uses, and protects personal data, please review FF’s full privacy policy at FF.com/us/privacy-policy/.

ABOUT QUALIGEN THERAPEUTICS, INC

Qualigen Therapeutics, Inc. (Nasdaq: QLGN), a clinical-stage therapeutics company focused on developing treatments for adult and pediatric cancers with potential for Orphan Drug Designation. For more information about Qualigen Therapeutics, Inc., please visit www.qlgntx.com.

FORWARD LOOKING STATEMENTS

This press release includes “forward looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. When used in this press release, the words “plan to,” “can,” “will,” “should,” “future,” “potential,” and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements. These forward-looking statements, which include statements regarding the intentions for its crypto assets and subsidiaries and their potential benefits, the Company’s investments in crypto currency, and the Dual-flywheel, Dual-bridge Eco Strategy are not guarantees of future performance, conditions or results and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside the Company’s control, which could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements.

Important factors, among others, that may affect actual results or outcomes include, among others: the Company’s ability to consummate the Spin-Off in a timely manner, if at all; the separate listed entity’s ability to raise future capital on attractive terms, if at all; the Company’s ability to control the management and operations of the separate listed entity; the Company’s ability to successfully execute on a new crypto-based strategy; the Company’s ability to raise funds to support a new crypto-based strategy; the inherent volatility and regulatory uncertainty associated with cryptocurrency investments; current and potential litigation involving the Company; the result of future financing efforts, the failure of any of which could result in the Company seeking protection under the Bankruptcy Code; general economic and market conditions impacting demand for the Company’s products; circumstances outside of the Company's control, such as natural disasters, climate change, health epidemics and pandemics, terrorist attacks, and civil unrest; and the Company's ability to develop and protect its technologies; the Company's ability to protect against cybersecurity risks. You should carefully consider the foregoing factors and the other risks and uncertainties described in the “Risk Factors” section of the Company’s Form 10-K filed with the SEC on March 31, 2025, and other documents filed by the Company from time to time with the SEC.

CONTACTS 
Investors (English): ir@faradayfuture.com 
Investors (Chinese): cn-ir@faradayfuture.com 
Media: john.schilling@ff.com 

FAQ

What is the value of Faraday Future's investment in Qualigen Therapeutics (NASDAQ: QLGN)?

Faraday Future is leading a $41 million PIPE investment, with FF directly investing $30 million at $2.246 per share, and CEO YT Jia personally investing $4 million.

How much ownership will Faraday Future have in QLGN after the investment?

Following the transaction, FF and its CEO YT Jia will control approximately 62% of QLGN's outstanding shares, with FF owning 55% and YT Jia owning 7%.

What management changes will occur at QLGN following the Faraday Future investment?

YT Jia will become Chief Advisor, Jerry Wang will be appointed as Co-CEO, and FF CFO Koti Meka will become CFO. FF will also have rights to nominate up to four of seven board seats.

What is the purpose of Faraday Future's investment in QLGN?

The investment allows FF to expand into crypto and Web3 business through QLGN while maintaining its core EV strategy, creating strategic synergies without diluting FFAI shareholders.

What is the share price for Faraday Future's investment in QLGN?

FF is investing at an effective price of $2.246 per share through the PIPE transaction.