Armada Acquisition Corp. II, which is preparing to merge with XRP reserve company Evernorth, has seen a remarkable surge in its shares. Shares of the company, traded under the ticker symbol XRPN, have gained approximately 273% in value over the past week.
Shares in Armada Acquisition Corp. II, which is slated to take Evernorth public, have surged 273% in a week. The merger is expected to be completed on October 7th.
The stock closed the last trading day of the week at $39.42, having risen 68% in a single day. It also touched the $53 level during trading. XRPN was trading at approximately $10.58 a week earlier. Evernorth stated that it expects the merger to be completed on October 7th, provided the remaining conditions are met.
Armada operates as a SPAC, or special purpose buying company. These companies raise money from investors, hold the funds in an account, and then merge with a private company to enable that company to go public on the stock exchange. The company Armada will merge with is Evernorth, which plans to hold a large amount of XRP.
Evernorth is expected to hold approximately 473 million XRP upon completion of the transaction. At the time of this news, with XRP trading at approximately $1.51, this reserve is valued at around $714 million. However, the 84.4 million XRP the company acquired for $214.1 million, with a contract until the end of 2025, is now worth approximately $127 million.
It’s not possible to say that the sharp rise in XRPN stock is solely due to expectations surrounding XRP. Armada had $241.2 million in funds at the end of June, with approximately $48 million remaining for the merger. This suggests that around 80% of the funds could be returned to shareholders wishing to withdraw.
*This is not investment advice.
