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Grindr Inc GRND shares look to have settled into a trading range Monday morning after running wild on Friday following the company’s public debut.
What Happened: Grindr began trading on the New York Stock Exchange last week following the completion of its business combination with Tiga Acquisition Corp. The stock surged by more than 300% before pulling back.
The elevated volatility in the name is likely a result of the high number of investors who opted to redeem shares during the merger process. A total of 27,114,767 shares of common stock, representing more than 98% of total shares, were presented for redemption, per a regulatory filing.
SPACs often have redemption rights, which give investors the right to sell their shares back to the acquisition company for net asset value if they don’t want to own the proposed company.
The redemption of SPAC shares reduces the amount of outstanding shares which also leads to a decline in the amount of shares available to short. As a result, high redemption rates can often induce short squeezes.
Grindr is the world’s largest social networking app for gay, bi, trans and queer people.
GRND Price Action: Grindr shares were up 2.82% at $37.52 at time of publication, according to Benzinga Pro.
Photo: Bruno /Germany from Pixabay.
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Image and article originally from www.benzinga.com. Read the original article here.