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Summary
- Electric vehicle startup Faraday & Future Inc announced plans to go public via a merger with SPAC Property Solutions Acquisition Corp.
- Stocks of the blank check company have been trending high on the markets since the announcement.
- It is reportedly looking to generate gross proceeds of about US$ 400 million in an equity offering.
Stocks of blank check company Property Solutions Acquisition Corp have been trending in the North American markets after electric vehicle startup Faraday & Future Inc Sunday announced its plans to go public via a merger with the special purpose acquisition company (SPAC).
The SPAC is looking to generate gross proceeds of about US$ 400 million in an equity offering, which is estimated to give the combined enterprise a market valuation of about US$ 3 billion, as per reports.
Both the companies are yet to make an official statement regarding the transaction.
©Kalkine Group 2020
What We Know About Property Solutions Acquisition Corp
Stocks of Property Solutions Acquisition Corp trade on the Nasdaq exchange under the ticker of ‘PSAC’. The SPAC’s shares have climbed by almost five per cent since its debut in September 2020 and by about a per cent in January to date.
The SPAC raised about US$ 230 million in an initial public offering (IPO) in July last year.
Property Solutions Acquisition Corp, which is led co-CEO and chairperson Jordan Vogel, reported total assets worth US$ 230 million in its quarter ending September 2020. The company posted a net loss of US$ 0.1 million in the latest quarter.
The SPAC, incorporated in Delaware in February last year, had specified in its SEC filing that though the company is not tied down to a particular sector, it planned to build business combinations with entities in the real estate industry.
The SPAC stocks were trading at US$ 10.10 apiece at the time of writing this.
What We Know About Faraday & Future Inc
Faraday & Future Inc is an electric vehicle company based in Los Angeles. The company, currently operated CEO Carsten Breitfeld, was founded by Chinese entrepreneur Jia Yueting in May 2014.
Faraday & Future is known for its first production and flagship vehicle, FF 91, which is said to be released to the market approximately a year after it receives a complete round of financing, as per reports.
The surge of EV players amid federal push for green vehicles has disrupted markets across the globe. More manufacturers are expected join this EV rush, which may push up the stock prices of green automakers that are already on a high, thanks to TESLA stocks.
