Investing.com — Qualigen Therapeutics Inc (NASDAQ:QLGN) stock soared 89.5% Monday following Faraday Future Intelligent Electric Inc’s (NASDAQ:FFAI) announcement of a strategic investment in the company.
Faraday Future revealed plans to invest approximately $30 million in Qualigen, which would give the electric vehicle maker about 55% of Qualigen’s common stock on a pro forma basis. The announcement was made during Faraday’s annual 919 event held in Los Angeles on September 19.
FF Founder and Co-CEO YT Jia will separately invest approximately $4 million in Qualigen through a loan from FFGP, securing roughly 7% of the company’s common stock. Jia’s investment includes a two-year lockup period, and he will serve as chief advisor to Qualigen.
The total investment package, which includes participation from blockchain technology company SIGN Foundation, amounts to approximately $41 million, subject to final closing adjustments and stockholder approval.
Following the investment, Qualigen reportedly plans to rebrand as CXC10 and shift its focus toward crypto and Web3-related business activities. The company aims to develop “three growth engines with six potential major products” for crypto ecosystem development.
As part of the arrangement, Faraday Future Global President Jerry Wang is expected to be appointed as Co-CEO of Qualigen. Additionally, FF will initially have the right to nominate two of five Qualigen directors, with potential to increase to four of seven board seats pending stockholder approval.
The strategic investment aligns with what Faraday Future describes as its “Dual-Flywheel & Dual-Bridge” Eco Strategy, which the company says is designed to maximize stockholder value.
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