Faraday Future Announces Strategic $41 Million Investment in Qualigen Therapeutics, Inc. (NASDAQ: QLGN) 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 pivot into the crypto and Web3 space. The deal includes a $30 million investment from FF at $2.246 per share, securing approximately 55% ownership, and a $4 million personal investment from FF's Founder YT Jia.

Following the transaction, QLGN will rebrand as CXC10 and shift its focus entirely to crypto and Web3 initiatives. FF and YT Jia will collectively own over 62% of QLGN's outstanding shares. The deal includes significant management changes, with YT Jia becoming Chief Advisor, Jerry Wang as Co-CEO, and Koti Meka as CFO. FF will gain substantial board control with rights to nominate up to four of seven board seats.

Positive

• Strategic acquisition of 55% ownership in QLGN for $30 million, enabling FF's expansion into crypto/Web3
• Significant board control with rights to nominate up to 4 of 7 board seats
• Support from major blockchain investors including Binance Labs, Sequoia Capital, IDG, and Circle
• Two-year lock-up commitment from YT Jia on personal investment shows long-term commitment
• Majority shareholder support already secured via voting agreement

Negative

• Significant deviation from FF's core EV business into unrelated crypto sector
• Substantial investment of $30 million may impact FF's available capital for EV operations
• Integration risks with completely different business model and industry
• Potential regulatory uncertainties in crypto space could affect investment value

Insights

Corporate Strategic Advisor

Faraday Future's $41M crypto pivot through QLGN acquisition signals strategic diversification but raises execution concerns amid EV struggles.

This $41 million investment by Faraday Future into Qualigen Therapeutics represents a dramatic strategic pivot that requires careful unpacking. The deal effectively gives Faraday Future and its founder YT Jia controlling interest (62%) in a publicly-traded company that will completely transform from therapeutics to crypto/Web3 operations under the new brand CXC10.

The transaction structure is particularly notable. Rather than directly entering the crypto space, Faraday Future is using this PIPE investment to effectively acquire a separate public vehicle. This approach allows FF to pursue crypto initiatives without diluting its own shareholders or potentially alienating EV-focused investors. It creates what management calls a "Dual Flywheel synergy" – allowing the company to maintain its primary EV business while establishing a separate entity for crypto ventures.

The leadership arrangements further cement FF's control, with FF executives taking key positions: YT Jia as Chief Advisor, Jerry Wang as Co-CEO, and FF's CFO Koti Meka assuming the same role at the transformed QLGN. With board nomination rights for up to 4 of 7 seats, FF will maintain governance control.

What's conspicuously absent is any detail about QLGN's current therapeutic business disposition or how exactly the "three growth engines" in crypto will function. The involvement of SIGN Foundation (backed by major players like Binance Labs and Sequoia Capital) adds credibility to the crypto ambitions, but without specifics on the business model, revenue potential, or integration strategy, investors should view this as a high-risk strategic transformation with uncertain outcomes.

Financial Analyst

FF's $41M crypto diversification through QLGN acquisition represents significant capital allocation risk amid EV industry challenges.

The financial mechanics of this transaction reveal a strategic corporate maneuver with significant implications. Faraday Future is investing $30 million at $2.246 per share for approximately 55% ownership of QLGN, while CEO YT Jia personally adds $4 million for another 7%, creating combined controlling interest of 62%.

This transaction structure effectively constitutes a reverse takeover of QLGN, creating a separate public vehicle for FF's crypto ambitions without directly affecting FF's capital structure. For a company in the capital-intensive EV space, allocating $30 million to a completely different business vertical represents a significant commitment of financial resources that could otherwise support core operations.

The two-year lock-up on YT Jia's personal investment signals confidence in the long-term vision, but also raises questions about capital allocation priorities. For QLGN shareholders, who have already provided majority support via voting agreements, this represents a complete business transformation from therapeutics to crypto.

The financial advisory involvement of Univest Securities as placement agent and the engagement of additional capital market advisory services suggest plans for future financing activities. The transaction includes provisions for FF to maintain proportional ownership through participation rights in future financings.

This arrangement creates an interesting financial structure where FF can pursue crypto opportunities without directly exposing its EV-focused investors to that risk profile, while maintaining control of the initiative. However, it also represents significant execution risk as FF attempts to simultaneously build an EV business and establish a crypto operation under separate corporate structures.

LOS ANGELES and CARLSBAD, Calif., 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 crypto and web3-related business.

Upon completion of the required stockholder approval process, it is expected that QLGN will rebrand as CXC10, fully focusing on its three growth engines in crypto and ecosystem buildup for Web3.

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. The total financing is 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 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 stock. 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 voluntary lock-up on his personal investment. QLGN already obtained majority shareholder support of this transaction via voting support agreement.

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, 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 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 is the sole placement agent in this transaction. FF is represented by Pryor Cashman and QLGN is represented by Lucosky Brookman. QLGN also hired a capital market advisory to support 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.

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 (QLGN)?

Faraday Future is investing $30 million at $2.246 per share for approximately 55% ownership, with an additional $4 million personal investment from YT Jia, totaling part of a $41 million PIPE transaction.

How will the FFAI investment in QLGN affect company control and management?

FF will gain significant control with rights to nominate up to 4 of 7 board seats. YT Jia will become Chief Advisor, Jerry Wang will be Co-CEO, and Koti Meka will serve as CFO.

What is QLGN's new business direction after the FFAI investment?

QLGN will rebrand as CXC10 and pivot completely to focus on three growth engines in crypto and ecosystem buildup for Web3, moving away from its previous business model.

Who are the key investors in the QLGN PIPE transaction?

The investment is led by Faraday Future and YT Jia, with participation from SIGN Foundation, which is backed by Binance Labs, Sequoia Capital, IDG, and Circle.

What percentage of QLGN will Faraday Future own after the transaction?

Faraday Future and YT Jia will collectively own over 62% of QLGN's outstanding common stock post-transaction, with FF owning 55% and YT Jia owning approximately 7%.