Today, investors in special purpose acquisition company (SPAC) GreenVision (NASDAQ:GRNV) are seeing impressive gains. Indeed, despite waning interest in SPACs, GRNV stock has more than doubled today on astronomical volume.
This move comes amid a significant amount of interest in the company’s merger target. Today, GreenVision announced it has completed its merger with Helbiz, a micromobility company. According to the press release, the combined company will operate under the Helbiz name and trade under the ticker symbol “HLBZ” on the Nasdaq. This ticker is expected to be live shortly, pending some issues we’ll get to in just a moment.
However, until it goes live, investors seem to be keen on grabbing as many GRNV shares as possible today. That’s partly because Helbiz will be the first micromobility company trading on the Nasdaq. But retail investors are also pointing to this stock as a potential “infinity squeeze” play due to unusual volume in the company’s shares and warrants. Additionally, a low float combined with a delisting notice have made for an intriguing contrarian play for traders.
Perhaps someone knows something we don’t. However, as we’ve seen with so many other squeeze plays, investors playing momentum can do quite well in a short amount of time. In this market, it appears retail traders are grabbing onto any opportunity to make money. Accordingly, GRNV stock is a trending one today.
Let’s dive into some of the details of this merger for those intrigued by today’s price action in GRNV stock.
GRNV Stock Skyrocketing on Merger Announcement
Today’s announced merger with Helbiz is one that’s been approved by investors and is slated to complete shortly. However, an intriguing piece of the announcement today is that due to redemptions of $16 million, the company will not meet the Nasdaq’s initial listing requirements of a $15 million free trading public float. The company’s plan is to remedy the deficiencies over the next seven days and file an updated S-1 covering the private placement of shares issued to PIPE (private investment in public equity) investors. Upon the S-1 being declared effective, 2.65 million PIPE shares will be considered as part of the “free trading float.” Accordingly, the company should meet its listing requirements at that time.
To date, the transaction is expected to net $24.5 million in gross cash proceeds. PIPE financing raised $21.5 million in net proceeds from the aforementioned private placement of 2.65 million shares.
Investors banking on the success of GRNV stock and Helbiz are focused on how the company will use these funds to grow its business. The transportation revolution is underway, and investors are increasingly looking to grab a slice of this pie.
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On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
