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Chenghe Acquisition (NASDAQ:CHEA) stock is climbing higher on Tuesday after announcing additional details about its planned special purpose acquisition company (SPAC) merger.
Chenghe Acquisition is planning to combine with Semilux International, Semilux Ltd, and CayCo subsidiary Taiwan Color Optics. After that merger is complete, Chenghe Acquisition will exist as a subsidiary of CayCo and will change its name to Semilux Ltd.
In connection with this SPAC merger, Chenghe Acquisition has reached a Forward Purchase Agreement with certain sellers. That includes Meteora Strategic Capital, LLC, Meteora Capital Partners, LP and Meteora Select Trading Opportunities Master, LP.
This agreement has these sellers agreeing to acquire up to 6 million shares of CHEA stock after the business combination closes. They would do so through the open market and wouldn’t obtain more than a 9.9 stake in the new company.
CHEA Stock Movement Today
With this news comes heavy trading of CHEA stock. That has more than 1.3 million shares changing hands as of this writing. That’s already well above its daily average trading volume of about 220,000 shares.
CHEA stock is up 19.6% as of Tuesday morning. The company’s shares also experienced a 28.2% rally during normal trading hours on Monday.
Investors who are seeking out even more of the most recent stock market stories are going to want to stick around!
We have all of the hottest stock market coverage that investors need to know about on Tuesday! Among that is what’s happening with shares of InVivo Therapeutics (NASDAQ:NVIV) stock, the biggest pre-market stock movers this morning and more. All of that info is available at the links below!
More Stock Market News for Tuesday
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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