The S&P 500 is set for its worst first half of the year in more than 50 years, but Northern Lights Acquisition Corp (NASDAQ:NLIT) is looking to buck that trend. NLIT stock is roaring higher on the day, up more than 100% at the time of writing. At one point it was up more than 215% on the day — a tripling from yesterday’s close.
What has it rallying so much? The biggest reason is the rumored closing of its merger with Safe Harbor, a cannabis financial services provider.
Earlier in the week, the company announced that it was rescheduling its special meeting for June 28 at 4:00 p.m. Eastern. That meeting was being held to approve the deal with Safe Harbor. However, Northern Lights also received additional funding from one its partners — 5AK — to extend the time for a vote.
Specifically, the company received an “aggregate of $1,150,000 (representing $0.10 per public unit sold in the Company’s initial public offering) into the Company’s trust account to extend the period of time it has to consummate the Business Combination by three months from June 28, 2022 to September 28, 2022.”
NLIT Stock Explodes on Planned Merger
The second part of that quote contains today’s catalyst. It reads: “The Company currently anticipates that the Business Combination will close by June 30, 2022.”
Of course, it’s been a volatile rally so far. Shares opened up just 3% this morning, but then exploded higher by more than 200%. From the high, NLIT stock has already pulled back 54%.
Interestingly though, the stock has only traded just over 500,000 shares on the day. So it could clearly be a case of a small group of buyers really moving this name.
On the date of publication, Bret Kenwell 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.