Shanghai (ZXZC)- Evergrande Health Industry Group Limited (Evergrande Health) announced on November 29 that the emergency arbitrator of the HKIAC (Hong Kong International Arbitration Centre) has rejected the application submitted by Smart King to deprive Season Smart Limited of the right to mortgage Smart King's assets.

It is known that Smart King is the joint venture between Season Smart and FF Top Holding Ltd., the original shareholder of Faraday Future (FF). Evergrande Health claimed on June 25 that it acquired 100% stake in the Hongkong-based Season Smart with an investment of HK$6.746 billion, which meant it also indirectly obtained 45% stake in Smart King.

However, Faraday Future announced on November 30 that its latest appeal of emergency arbitration will be transferred to an official arbitral tribunal that will be formed soon and be adjudicated by the latter. It also said Evergrande Health's announcement about FF being rejected by HKIAC is not entirely true. Currently, FF, supported by the U.S. investment banking firm Stifel, is in talks with many investors worldwide and accelerating its financing plan.

On October 25, Evergrande Health released an inside information saying that the HKIAC vetoed Smart King (on behalf of FF)'s application about entirely depriving Season Smart of the right as Smart King's shareholder to approve financing plans and removing Season Smart's right to mortgage assets. Meanwhile, the arbitrators agreed Smart King to get funds limited by rigorous conditions as a temporary rescue measure in light of FF's current severe financing crisis.

After the first-time rejection, FF said on November 13 that it submitted another application for emergency relief arbitration to the HKIAC regarding Evergrande Health's refusal to remove the asset preservation over FF. In addition, the EV maker stated it is unable to get financing through asset based mortgage because Evergrande Health chooses to preserve Smart King's core asset as much as possible.