In general, market sentiment around special purpose acquisition companies (SPACs) has dwindled considerably since 2020-2021. That said, certain SPAC companies continue to see outsized interest. Forbion European Acquisition (NASDAQ:FRBN) is among the companies in focus today. Shares of FRBN stock surged more than 100% in earlier trading toady, continuing the stock’s volatile trend over the past week.

This move came on news that shareholders have officially approved the SPAC’s planned merger with Canadian gene therapy developer enGene. This deal is expected to be completed before the end of the month. This vote was the key item that needed to be addressed prior to the completion of the merger.

With this stock surging higher, let’s dive into what investors may want to make of this SPAC play.

Is FRBN Stock Worth a Buy?

In this market, investors may be skeptical of SPACs that see their valuations soar on a merger announcement. That’s primarily due to the experience many investors went through with previous SPAC deals. Many saw dwindling share prices once the merger was completed.

There’s certainly plenty of interest around this deal, given enGene’s focus on gene therapy treatments and the potential growth this market provides. However, I’m of the view that any SPAC company that surges in short order, much in the same way FRBN stock has been, is one that investors want to be very cautious with.

I’ll keep Forbion/enGene on my radar moving forward. While anything is possible, and this stock could continue running from here, I’m of the belief that when momentum shifts, it’s likely to do so in a violent fashion. Buyer beware.

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.