An XRP treasury SPAC surges nearly 300% ahead of Evernorth merger
Armada Acquisition Corp. II shares surged nearly 300% following news of its upcoming merger with Evernorth. The volatility is attributed to high redemption rates by shareholders, which reduced the available float of shares.
Why it matters
The event illustrates the extreme market volatility often associated with SPAC mergers and the impact of redemption mechanics on stock pricing.
Armada Acquisition Corp. II (XRPN) closed at $39.42 on Friday, up 68% that day and about 273% for the week, according to StockAnalysis data . The shares briefly touched $53, compared with $10.58 a week earlier. Shares are higher by another 9.5% in pre-market trading Monday.
Evernorth told CoinDesk in an email that it expects the merger to close on Wednesday, Oct. 7, subject to remaining conditions.
Armada is a special purpose acquisition company, or SPAC. It raised money, holds it in a trust and later merges with a private business. Public shareholders can request their money back before the deal closes, rather than keep their shares in the combined company.
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