""SPAC Stock"" – Google News
Special Purpose Acquisition Company (SPAC) shares One (NYSE: AONE) jumped more than 12% early Monday morning and holds on to about half of its gains as of 12:20 p.m. EDT – up 6.3%.
If you’re not sure what exactly one is, that’s not surprising. It’s a little confusing so let me unwrap this for you. The stock market ticker “AONE” used to belong to the manufacturer of rechargeable car batteries A123 Systems, but A123 was taken over by the Chinese Wanxiang Group in 2013. (Certain assets were later sold to the Chinese Lithium Works in 2018.)
AONE is now the ticker for One, a San Francisco-based SPAC that announced last month that it would acquire Markforged, additive manufacturing machine maker “The Digital Forge”, a 3D printer maker. These machines print objects using carbon fiber reinforced composites or metal filament materials. It is hoped to get Markforged Public into a reverse merger IPO sometime in the summer of 2021 with “approximately $ 2.1 billion in equity and approximately $ 400 million in net cash.” (Translation: the stock should have a market capitalization of $ 2.5 billion, of which $ 400 million will be secured with cash.)
In this case, Markforged will be publicly traded on the NYSE under the ticker symbol MKFG, and the troubled ticker “AONE” will again be abandoned.
Nice and good. But if One announced its SPAC deal last month and the deal won’t close in three or four months, why is One moving today?
It’s not always easy to see why stocks go up and down, especially when it comes to volatile SPAC stocks. In that case, investors appear to be reacting this morning to a earnings report from a rival 3D printer maker and an IPO for SPAC. Desktop metal (NYSE: DM). Desktop reported that it lost $ 0.57 per share in the fourth quarter of 2020, a smaller loss than a year ago, even though revenue was down 38% year over year.
That sounds like pretty bad news to me. (Analysts believe so too. Desktop Metal sales rose to just $ 8.4 million in the fourth quarter, below consensus expectation of $ 9.3 million. 3D printer maker is one that follows it higher.
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