(Yicai Global) Sept. 28 -- Shares of Faraday Future Intelligent Electric jumped after the US electric vehicle startup said it has settled a corporate governance dispute with FF Top Holding, its biggest shareholder, clearing the way for the return of the carmaker’s Chinese founder, and has secured USD100 million in new financing.

Faraday Future [NASDAQ: FFIE] fell back from an opening surge of 16.8 percent in New York yesterday to close 5.9 percent higher at 89 US cents a share. The benchmark Nasdaq Composite index gained 0.3 percent.

FF Top will drop its lawsuit against Faraday Future and its board, and in return Chairperson Sue Swenson and former chairman and current director Brian Krolicki will step down, the California-based automaker said on Sept. 26. Faraday Future’s board will undergo a major shakeup after the firm’s annual general meeting, FF Top added, cutting the number of seats to seven from nine and returning control to founder Jia Yueting and his partners after more than a year.

FF Top, which owns 20 percent of Faraday Future and 36 percent of the voting rights, sued the carmaker last week, seeking to remove Swenson and Krolicki, who were trying to push the company into unnecessary bankruptcy, it claimed.

To finance mass production and delivery of its first model, the FF91, Faraday Future also said it has secured up to USD40 million in short-term funds in the form of convertible secured notes and warrant exercise payments and USD60 million of near-term financing from Daguan International’s investment arm Senyun International, also in the form of convertible secured notes.

Under the deal reached, Adam He has been appointed independent board member and member of the nominating and corporate governance committee and audit committee to ensure the planned board changes go smoothly. Jordan Vogel resigned as lead independent director on Sept. 23.

He, who is also the chief financial officer of Wanda America Investment Group, is a certified public accountant in China and New York with vast experience in initial public offerings, the listing of special purpose acquisition companies, and auditing.

Editor: Futura Costaglione