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Highlights
- CF Acquisition Corp. VI (NASDAQ:CFVI) is gaining investors' attention as its stock soared over 30 per cent during premarket trading.
- During the last trading session on Friday, December 3, the CFVI stock surged 12.5 per cent to close at US$ 11.9 per share.
- CF Acquisition Corp. VI is a SPAC, and it is going to merge with the Canadian online video platform Rumble.
The stock of CF Acquisition Corp. VI (NASDAQ:CFVI) soared 31.3 per cent on Monday, December 6, during premarket hours at it was trading at US$ 15.52 per share at 4:30 AM EST.
The price surge is due to the investors responding positively to the announcement that CF Acquisition Corp. VI has agreed to merge with Rumble, the Canadian online video platform.
Notably, CF Acquisition is a special purpose acquisition (SPAC) company, and the merger is expected to close in the second quarter of next year.
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During the last trading session on Friday, December 3, the CFVI stock surged 12.5 per cent to close at US$ 11.9 per share. As the stock price increases, it is good news for the shareholders. On that note, let's further explore about the Rumble SPAC merger deal:
What's next for CFVI shareholders?
The Board of Directors of both the companies have agreed to go forward with the deal, and this transaction will also require the approval of the CF Acquisition and Rumble shareholders.
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Notably, the Rumble stockholders have approved the merger deal with a SPAC, and it is currently valued at around US$ 2.1 billion. Under the agreement, Rumble shareholders can receive additional shares of the combined entity if the stock achieves a price range of US$ 15 to US$ 17.5 per share.
The premarket price increase of the CFVI stock indicates that the stock will most likely stay above the US$ 15-mark, allowing the video platform's shareholders to earn more shares.
Bottom line
The SPAC merger is expected to generate US$ 400 million for Rumble, and it wants to get listed on the Nasdaq Stock Market. The combined entity will be called Rumble Inc., and until the merger is completed, shares will trade on Nasdaq under the stock symbol CFVI.
The Toronto-based company claims to be a neutral video platform, and it has emerged as one of the most popular video distribution platforms in the market today.
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In the third quarter of this year, Rumble had 36 million average monthly users, which is expected to grow in the future.
