Recently, some media reported that Jia Yueting's company, FF Faraday, received a delisting warning from Nasdaq because its stock price has been below $1 for 30 days, and if it can't push the stock price to $1, it will be delisted.
In fact, in August 2023, FF Farah was also going to be delisted because the stock price was less than $1, but Jia Yueting played another trick, that is, merging shares, combining 80 shares into one share, making the original stock price of only about $0.2 become more than $10.
Unexpectedly, after more than 4 months, FF Faraday, which is more than $10 per share, has become $0.231 again, with a total market value of less than $30 million, down 99.5% from the market value of nearly $6 billion at the peak.
Of course, we don't know whether Jia Yueting will play this trick again this time and merge 80 or more shares into one share, so that the stock price will rise again.
But behind such a miserable fall, it is actually Jia Yueting's creditors who are the worst, the debt of 20 billion is estimated to be zero, the key is that they still can't say their bitterness, and Jia Yueting played a golden cicada out of their shells.
We know that before FF Faraday went public, Jia Yueting declared personal bankruptcy and then carried out debt restructuring, and these creditors turned the debt owed by Jia Yueting to them into shares of FF Faraday.
You can flip through the documents at that time, and you can see that when the debt was restructured at that time, its share composition was as follows:
1. seller rolloer equity: 51.1%, which is the shareholding ratio of FF shareholders (such as partner shares, old shareholders of previous financing, Evergrande Xu Jiayin is included in it)
2. PIPE shareholders: 23%, here are the subscribers of the additional shares to raise matching funds.
3、Debt Converted to equity：17.2%，这里是FF的债权人，也就是债转股，也是原本贾跃亭的债主。
4. SPAC shareholders: 6.8%, here are the earliest shareholders of PSAC to subscribe for shares at $10 per share;
5. SPAC sponsor: 1.9%, this is the initiator of the shell (the person who sells the shell);
As can be seen from point 3, these creditors have taken a total of 17.2% of the shares of FF Farath. At the time of debt restructuring, the total amount of recognized debt was US$2.96 billion (about RMB20 billion at the exchange rate at the time).
Xu Jiayin invested 600 million US dollars in Jia Yueting at that time, and he got 16.32% of the shares of FF, which was included in Part 1.
If FF Faraday develops well, as long as the market value reaches about $17.2 billion, these creditors will not lose, because these shares are worth $2.96 billion, and Xu Jiayin will make even more money, $600 million becomes $2.8 billion, making $2.2 billion.
But if the stock goes to zero, it means that the original value of $2.96 billion, about 17.2% of the stocks are all zero, and Xu Jiayin's $600 million is also zero.
The key is that they can't reason with Jia Yueting, and they can't ask him for money anymore, because when the agreement was signed, the debt became shares, and Jia Yueting transferred the debt through debt restructuring, and he was out of his shell and no longer owed money to these people.
It can be seen that Accountant Jia still knows how to play, he designed all this a few years ago, used the listing, transferred the debt, and finally got rid of the debt himself, and people couldn't say that they couldn't find him.
For example, a person owes money, but when he says to the creditor, I don't have any money, but I have some stocks worth this money, so I will pay the shares for the debt. The creditors had to agree, accepted the stock, tore up the IOU, and finally the stock fell to 0.