SNPR - Why Tortoise Acquisition II Stock Dropped 14.1% in March
Shares of special purpose acquisition company (SPAC) Tortoise Acquisition II (NYSE: SNPR) are currently trading almost exactly where they started the year. But they hardly went in a straight line. The stock was up more than 60% in February after the SPAC announced it has plans to merge with electric charging network company Volta. The deal valued the combined company at over $2 billion, and investors jumped in. But a rotation away from aggressive, and speculative, electric vehicle-related companies into more cyclical names followed that spike, and shares dropped quickly. In March, that trend continued, with shares down 14.1% for the month.
The merger announcement was made on Feb. 8, 2021, which is when the stock peaked at over $17 per share. Volta will receive about $600 million in net proceeds from the deal, helping the company to grow its charging-network business. But since then, shares have been on a downtrend to under $11 per share, bringing the valuation of the combined company back close to the level of the transaction, which was based on a $10 per share SPAC price.
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Why Tortoise Acquisition II Stock Dropped 14.1% in March