There’s a good-news, bad-news situation happening for investors of Alpine Acquisition (NASDAQ:REVE). The bad news is that Alpine is, once again, delaying its shareholder meeting to vote on a proposed business combination Two Bit Circus. The good news, though, is that REVE stock is rallying anyway.
Let’s start with the backstory. In May of last year, Alpine Acquisition, a special purpose acquisition company (SPAC), signed a definitive agreement to acquire Two Bit Circus. This transaction was expected to close during 2022’s third quarter.
Two Bit Circus operates a network of “Micro-Amusement Parks,” which are small, tech-infused experiences that blend carnivals, circuses and amusement parks. They involve “unexpected social experiences that bring people together elbow-to-elbow to play, eat, drink, and generally experience life at the highest resolution.”
That sounds like fun, but it’s not necessarily fun when a SPAC merger doesn’t happen in a timely manner. 2022’s third quarter came and went, and the Alpine-Two Bit merger didn’t happen. Perhaps Alpine’s shareholders hoped the business combination would be finalized this week. As it turns out, those hopes would only lead to disappointment.
REVE Stock Rallies Despite Shareholder Vote Delays
Fast-forward to the present time, and there’s more unfortunate news to relay. Reportedly, for the “second time in less than a week,” Alpine Acquisition adjourned a shareholder meeting to vote on the proposed business combination with Two Bit Circus.
Apparently, Alpine has now pushed the meeting’s date back to March 16. This, according to the company, will allow for “additional time to engage with its stockholders and finalize terms in connection with the proposed business combination.”
One might wonder whether there’s resistance to the proposed merger among some of Alpine’s shareholders. In any event, all of this should, at least in theory, put negative pressure on the Alpine Acquisition share price. Yet, Wall Street is always full of surprises.
Interestingly, REVE stock rallied 8% in early-morning trading and was still up 6% as of 11:00 a.m. Eastern today. Evidently, some financial traders are still optimistic about the long-delayed proposed SPAC merger between Alpine Acquisition and Two Bit Circus.
On the date of publication, David Moadel 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.
