Property Solutions Acquisition (PSAC) peaked investor interest after confirmation of filing essential documents with the U.S. Securities and Exchange Commission (SEC)in regards to the PSAC merger in the electric-vehicle (EV) community.
PSAC stock price increased by more than 10% as it notified its aim to merge with Farraday Future, a distinguished company specializing in Electric vehicles, in late January. Hence the SPAC price increased up to $20 per stock, which is approximately double compared to its price in the beginning of2021. However, the share price plunged $12 per PSAC share by early March, as investor interest for SPACs, in general, decreased, even though the agreement was still on.
Could The Property Solutions Acquisition Corp. (NASDAQ: PSAC) Ownership Structure Be Significant For Company Valuation?
With a market capitalization of US$366m, Property Solutions Acquisition does consist of institutional investors, with LLC owning 18% of shares outstanding, however, no single shareholder has significant control over the company as, the second-largest shareholder owns a tiny proportion of 4% with the third-largest shareholder owning 3.4% respectively.
43% of the company is owned by the general public which can still make a collective impact on company policies, even though ownership may not be adequate to overturn a decision in their favor.
Private Companies own 18%, of the Property Solutions Acquisition shares, depicting that the company has credibility among institutional investors, however still considers general public ownership to be of most significance.
Conclusion
PSAC offered a better-than-expected outlook for the current quarter, and are anticipated to produce a decent profit as their stock price surged 10% after announcing their merger with Faraday future, a renowned company in the lucrative Electric-vehicle market. Furthermore, SPAC price per share reaching an all-time high of $20, and diversification into the EV industry has further peaked investor interest.
