Evernorth Revises Nasdaq Listing Terms Due to Slumping XRP Price

The Nasdaq listing of Evernorth Holdings is being revised due to the current price of XRP, which is significantly lower than the original estimate. The company, backed by Ripple, aims to create the largest public XRP reserve and is set to merge with SPAC Armada Acquisition Corp. II.

Instead of using a fixed company valuation, the parties have switched to a flexible mechanism where the final number of shares will be tied to XRP's volume-weighted average price (VWAP) at the time of deal closure. This adjustment is made because XRP's current price is around $1, below the original assumed price of $2.36.

The deal was valued at over $1 billion and would have seen Evernorth issue a fixed number of shares at $10 each. However, with the revised terms, fewer shares will be issued, but each share will be backed by more XRP, increasing investors' share of the fund's treasury.

Evernorth currently holds 473 million XRP tokens, including a strategic contribution from Ripple of over 126 million tokens made at the signing stage. The reserve was accumulated at an average price of $2.54 per token, representing approximately $1.2 billion in investments.