Pono Capital Corp. (NASDAQ: PONO) is a Hawaiian company focused on asset acquisition and value creation by business restructures. The company has seen somewhat overlooked by the market, as of late, resulting in a static stock price for nearly two years. Recently, with a business update, things began taking a disruptive shift for the stock.
PONO’s Price Shifts After Static State
The stock for Pono Capital Corp. (PONO) shows a remarkable price trajectory. It has remained somewhat static since late 2021, taking on a very minuscule climb, and trading close to the $10 mark. Towards the end of January 2023, however, the stock began seeing a volatile shake, that came with a volume surge, finally bringing movement to the PONO price curve. By early February, the stock peaked at $18, resulting in a price jump of nearly 68%. Ever since that rise, however, PONO has been on a corrective descent, dropping to $11 by Friday, and down to a further $7.90 during the after-hours through the weekend.
SPAC Merger and Valuation
Although PONO’s sudden movement may seem spontaneous to many, a potential trigger for its action may be a recent SPAC merger. Last week, the company’s shareholders voted to approve a business combination with the Japanese company, Aerwins (AWIN), which is a tech developer specializing in air mobility devices. According to the terms of the merger, Pono holds a valuation of $150 million, which suggests the $10 price of the stock was appropriate. Based on this information, it comes as no surprise as to why its rise to the $18 mark could not sustain itself further.
Conclusion
PONO’s stock price has jerked into action following the news of its SPAC merger, spurring market bulls into action. What followed, however, was a short-lived price pump that could not push on, given the rise above the determined value of the company’s stock.
