Muds Stocks: Here's A Detailed Outlook Of SPAC Mudrick Capital

3 min read | April 07, 2021 06:56 AM EDT | By Shreya Biswas

Muds Stocks: Here's A Detailed Outlook Of SPAC Mudrick Capital

Mudrick Capital Acquisition Corporation (NASDAQ:MUDS, MUDS:US)

The two companies are likely to seal the deal by the end of 2021 second quarter or early on in Q3 2021. If and when that happens, the combined company will be named after Topps Co, while the SPAC’s stocks on the Nasdaq platform will begin trading under the symbol of ‘TOPP’.

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The new merged enterprise is also expected to have gross proceeds of around US$ 571 million, which will include the US$ 250 million Mudrick Capital raised via through a private investment in public equity (PIPE).

The announcement led to Mudrick stocks recording heavy trading on Tuesday, with its intraday volume standing at 38.95 million. For comparison, note that the stock’s 10-day average trading volume is about 3.93 million.

Mudrick stocks have grown about 14 per cent since the blank check company went public in January this year. The stock expanded by over 16 per cent in the last one month and by about 17 per cent in April so far.

1-year chart of Mudrick Capital’s stock performance (Source: EODHD/Others/Thomson Reuters)

Mudrick Capital’s merger with Topps comes at a time when many companies are choosing the SPAC route to go public rather than the traditional IPO format. Once the merger is complete, former Disney head Michael Eisner will continue as the combined company’s chairperson. His enterprise, Tornante Company, and Madison Dearborn Partners teamed up to buy the New York-based firm back in 2007.

Mr Eisner has announced that he will roll all of his shares in the collectibles company into an equity stake in the new, combined entity.

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