Evernorth SPAC Stock Surges Ahead of XRP Treasury Merger

Shares of Armada Acquisition Corp. II, the special purpose acquisition company (SPAC) set to merge with Evernorth, surged nearly fourfold last week. The stock closed at US$39.42 (AU$56.76) on 2 October, up from US$10.58 (AU$15.24) at the start of the week. The peak intraday price reached US$53 (AU$76.32), driven by high trading volume.

The merger, expected to close on 7 October, will see Evernorth trading on Nasdaq under the ticker XRPN starting 8 October. The company anticipates approximately US$48 million (AU$69.1 million) in trust proceeds from the deal, down from the US$241.9 million (AU$348.3 million) held at the 20 August record date due to share redemptions.

At closing, Evernorth will hold about 473 million XRP, positioning it as the largest listed company with an XRP treasury. The company acquired 388.7 million XRP in October 2022 at an average price of US$2.44 (AU$3.51). XRP was trading at US$1.50 (AU$2.16) on 2 October.

The SPAC’s sponsor, Arrington XRP Capital Fund, paid US$6.6 million (AU$9.5 million) for its stake in August 2022. Additionally, the company amended its warrant agreement to allow holders to exercise their warrants immediately upon closing, rather than waiting 30 days.