Special purpose acquisition company (SPAC) Virtuoso (NASDAQ:VOSO) has announced that its shareholders approved its merger with connected vehicle data startup Wejo. And boy, did people notice. Perhaps unsurprisingly, VOSO stock closed up 43% on the day, which represents practically its only major movement since the SPAC went public in March. VOSO is currently sitting on its all-time high of $19.90.
The purpose of a SPAC is to acquire and subsequently take public a private company that investors of the SPAC consider viable. After the SPAC merger, shares of the SPAC, in this case Virtuoso, will be converted into the acquired company. That means that all cash and assets on hand for Virtuoso will transfer to Wejo.
With the monumental level of anticipation behind the merger, what will Wejo look like in the public markets?
VOSO Stock: Can Virtuoso Take Wejo to the Moon?
British-based Wejo operates a cloud-integrated, “industry-leading car data marketplace.” It currently is working alongside software company Palantir (NYSE:PLTR) to create an integrated data ecosystem for commercial use in the automotive industry. This relationship is likely leading the bullish charge on the SPAC. Despite the anticipation, it should be noted that PLTR closed down more than 4%.
Palantir has actually been involved in six SPACs over the past year, most of which involve data-driven companies. Palantir, c0-founded by Silicon Valley mogul Peter Thiel, reportedly assists Wejo with scalability. This should be unsurprising, as Palantir has worked with its other investments to assist them with growth. For investors then, the Wejo SPAC merger also represents an opportunity to benefit from Palantir’s management.
With that exciting catalyst in mind, what else should you know?
Wejo stock will trade under the ticker WEJO, while its warrants will trade under WEJOW. Shares will list on the Nasdaq and begin trading starting Friday, Nov. 19.
If the performance from VOSO stock today was any indication, you won’t want to miss this debut. Stay glued to your ticker sheets to see if this hype turns into something more substantive.
On the date of publication, Shrey Dua 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.