Supply: Dmitry Demidovich/ShutterStock.com
The world of particular function acquisition firms (SPACs) is about to get an thrilling new member. Clean-check firm Lionheart III Corp (NASDAQ:LION) is rising at the moment as momentum builds for its merger with Australia-based safety software program options firm Safety Issues. LION inventory surged earlier at the moment and, though it has since misplaced some momentum, shares stay firmly within the inexperienced.
As of this writing, LION inventory is up greater than 10% for the day. In the meantime, SMX — Safety Issues’ inventory ticker on the Australian Securities Alternate — is up 14%, having loved a day of regular development. Clearly, the market is eagerly anticipating the profitable SPAC merger of this firm.
Does this imply that LION will proceed to rise as traders watch for additional merger updates? Let’s take a more in-depth take a look at the market at the moment and assess the forces pushing up shares.
What’s Occurring With LION Inventory?
What’s vital to recollect is that Lionheart’s profitable merger settlement isn’t breaking information. The SPAC introduced the merger on Jan. 31, 2023 following a particular assembly of shareholders. The corporate additionally submitted an 8K submitting to the U.S. Securities and Alternate Fee (SEC) the day earlier than. Later, on Feb. 1, LION inventory ranked among the many day’s prime pre-market movers, rising 15%. This rally light within the ensuing days, however now LION is rising steadily and traders appear excited for the finalization of the deal.
Within the merger announcement, Lionheart III didn’t disclose any key dates for when the deal would progress. That begs the query of why each SMX and LION inventory are surging at the moment, weeks after the 8K submitting and with out a clear growth-driving catalyst.
LION’s volatility could also be on account of hypothesis revolving round its low market capitalization and low every day buying and selling quantity. Moreover, LION inventory has been gaining momentum on Twitter alongside names like de-SPAC Ocean Biomedical (NASDAQ:OCEA). Like Safety Issues, Ocean Biomedical just lately introduced that its merger with a SPAC had been permitted as of a Feb. 3 assembly.
What’s apparent from this pattern is that investor curiosity in de-SPACs is excessive now. Retail traders need to see these shares maintain rising and appear to imagine they’ll. It’s unclear if it will proceed, however the coming months might even see some thrilling market debuts if investor enthusiasm for SPACs continues to develop.
On the date of publication, Samuel O’Brient didn’t maintain (both straight or not directly) any positions within the securities talked about on this article. The opinions expressed on this article are these of the author, topic to the InvestorPlace.com Publishing Pointers.
