Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.
Shares of Locust Walk Acquisition Corp (NASDAQ:LWAC) are surging higher Wednesday morning after the merger with eFFECTOR Therapeutics was approved.
eFFECTOR Therapeutics is focused on selective translation regulation inhibitors to treat cancer. The SPAC merger valued the company at $419 million, including a $60 million PIPE with an investment from Pfizer Inc's (NYSE:PFE) venture capital arm Pfizer Ventures.
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!
Related Link: Exclusive: Accelerate CEO On SPAC Arbitrage, Why You Can't Always Bet On SPAC Sponsor
Why The Stock Is Soaring: Locust Walk Acquisition raised $175 million in its IPO, selling 17.5 million shares in its offering.
SPAC expert Julian Klymochko tweeted that 16.98 million LWAC shares were redeemed at the merger vote, representing 97% of shares outstanding.
“That is the highest redemption rate I’ve ever seen,” Klymochko tweeted.
FREE REPORT: How To Learn Options Trading Fast
In this special report, you will learn the four best strategies for trading options, how to stay safe as a complete beginner, a 411% trade case study, PLUS how to access two new potential winning options trades starting today.Claim Your Free Report Here.
The result of the high redemption made LWAC a low float stock with $5.2 million remaining in the trust and around 525,000 shares in the float.
More shares of the company will become available after the merger is complete and PIPE shares become tradeable.
The move on Wednesday follows several other SPAC mergers that had heavy redemption and became low float stocks.
Helbiz Inc (NASDAQ:HLBZ) shares hit $25 during the merger process after seeing heavy redemption. Shares now trade at $7.05.
Wheels Up Experience Inc (NYSE:UP) shares hit $15 after seeing a redemption rate of 55.8% during the merger vote. UP shares now trade at $7.92.
Shares of eFFECTOR will trade as EFTR on the Nasdaq once the deal is complete.
LWAC Price Action: Shares are up 162% to $23 at the time of publication, earlier hitting a high of $70 in premarket trading. Prior to the merger being approved, shares of LWAC traded between $8.33 and $10.05.
Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.