Aerwins Technology Inc.’s stock lost about 56% of its value on Monday after the blank-check company Pono Capital completed its acquisition of the maker of battery-powered flying motorcycles. Aerwins was valued at $600 million when Pono Capital announced plans to buy the company in September.
The stock fell to $5 a share on Monday after 99% of Pono Capital’s shareholders opted to redeem their stock rather than keep shares of the combined company, Bloomberg reported. Under the deal, Pono Merger Sub Inc. merged with Aerwins Inc., with Aerwins Inc. continuing as a wholly owned subsidiary of the company, which was previously named Pono Capital Corp. and is now named Aerwins Technology Inc
Shuhei Komatsu, who was formerly the CEO of Aerwins Inc., is now CEO, chair and board member of Aerwins Technology Inc. The company makes the Xturismo hoverbike, which travels at speed of up to 62 miles per hour. The limited edition, now on sale in Japan, costs about $77,000. Most special-purpose acquisition companies, or SPACs, feature stock redemptions, which allow investors to sell back their shares if they want to cash in ahead of a portfolio company acquisition or if they don’t like a proposed business combination. Also read: Bridger Aerospace stock set to double on first day after SPAC merger completed