VivoPower (NASDAQ:VVPR) stock is rocketing higher on Tuesday after the company announced plans for its Tembo subsidiary to go public via a special purpose acquisition company (SPAC) merger.
That merger will see Tembo combine with SPAC Cactus Acquisition Corp 1 (NASDAQ:CCTS). This combination will see Cactus Acquisition issue 83.8 million shares in exchange for Tembo shares, priced at $10 per CCTS share.
To go along with this, VivoPower will issue a dividend to shareholders once the SPAC merger closes. That will see it distribute 16.76 million Tembo shares to investors. That will represent 20% of the 83.8 million Tembo shares and will grant five Tembo shares for each share of VVPR stock.
Investors in VVPR stock will be eligible for the Tembo dividend stock payment if they are on record as of April 30, 2024. The company expects the business combination agreement to close in May 2024 with the later transaction set for August 2024.
VVPR Stock Movement on Tuesday
VVPR stock is seeing incredibly heavy trading following this SPAC merger announcement. That has more than 73 million shares changing hands as of this writing. That’s already well above its daily average trading volume of about 45,000 shares.
VVPR stock is up 259.6% as of Tuesday morning.
Investors can find more of the most recent stock market news below!
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On the date of publication, William White 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.
