Property Solutions Acquisition Corp. (PSAC) stock prices were down by a marginal 1.83% as of the market closing on June 30th, 2021, bringing the price per share down to USD$15.58 at the end of the trading day. After hours trading saw the stock inch up by 2.70%, bringing it up to USD$16.00.
Shareholder Meeting
June 30th, 2021 saw PSAC and Faraday Future remind the former’s investors to cast their votes in favor of a proposed strategic collaboration that has been in the works since the start of the year. Following a successful vote, the combined entity will trade as a publicly listed company on the Nasdaq under the ticker symbol FFIE. The virtual meeting to approve the pending changes is scheduled for July 20th, 2021, with voting remaining open until 11:59 pm EDT, July 19th, 2021.
Details of Acquisition
The merger is set to generate roughly USD$1 billion in gross proceeds for Faraday Future, of which USD$230 million will be cash held by PSAC in trust, assuming no redemptions. The gross proceeds will also consist of USD$775 million of fully committed common stock PIPE at a price per share of USD$10.00. Accordingly, the transaction is forecasted to fully fund the production of the ultimate-performance luxury electric FF 91, which is set to define its class, within a year of the closing of the transaction. Funds from the transaction will also facilitate the future development of the company’s unique I.A.I system.
About Faraday
Faraday Futures has implemented a worldwide hybrid manufacturing strategy, combining its manufacturing facility in California with a contract manufacturing partner in South Korea. As per the strategy, FF91 is set to revolutionize its driving class among electric vehicles, with nearly 900 filed or issued global patents supporting its proliferation, from Variable Platform Architecture to its Propulsion system, and Advanced Internet, Autonomous Driving and Intelligence technology.
After the Merger
The transaction is expected to close in the second quarter of 2021, after which the combined company will be named Faraday Future Inc. and will trade on Nasdaq with the new ticker symbol FFIE. Estimated post-transaction equity value of the company is expected to be around USD$3.4 billion. PIPE anchor investors include some of the biggest institutional shareholder from the U.S and Europe, a Tier-1 city in China, and a Top 3 Chinese OEM.
Future Outlook for PSAC
Armed with the highly likely upcoming acquisition, PSAC is poised to capitalize on the plethora of opportunities afforded to it from the strategic collaboration. With a world that is hurtling towards cleaner transportation, electric vehicles are a burgeoning market that the company is now well situated to take advantage of.
