California-based electric vehicle company Faraday Future (FF) and special purpose acquisition company (SPAC) Property Solutions Acquisition Corp. (PSAC) today announced a definitive agreement to merge their businesses, with the combined entity to be listed on Nasdaq under the symbol "FFIE".

The merger transaction provides FF with approximately $1 billion in capital, including $230 million in cash held in trust by PSAC and oversubscription of $775 million in common stock at a price of $10.00 per share, providing sufficient capital to support the mass production and delivery of FF's flagship product, the FF 91.

At a subscription price of $10.00 per PIPE share, the transaction indicates an implied equity value of $3.4 billion for the combined company.

The boards of directors of both FF and PSAC have unanimously approved the business combination, which is expected to close in the second quarter of 2021.

Keystone investors include large financial institutions from the U.S. and Europe, the top three private automotive OEMs in China, and a top tier Chinese city.

FF 91, which will launch within 12 months of the closing of the transaction, has been awarded nearly 900 patents for its Variable Platform Architecture, EIC system, and I.A.I. (Internet, Autonomous Driving, Intelligence) system, FF said.

FF has adopted a global manufacturing footprint, including its manufacturing facility in Hanford, California, and an OEM partnership with a South Korean company in manufacturing.

Over the next five years, FF's plans include the FF 91 series, FF 81 series, and FF 71 series, and its first flagship model, the FF 91, has received orders for more than 14,000 units, FF said.

The FF 81 is expected to be mass-produced and launched in 2023, and the FF 71 is expected to be mass-produced and launched at the end of 2024. In addition to passenger cars, FF plans to launch Smart Last-Mile Delivery in 2023 using its proprietary VPA platform.

PSAC shares went up by 12 percent in pre-market trading on Thursday.

FF expects to sell more than 400,000 units in next five years, says FF 91 orders exceed 14,000