Aurora Acquisition (NASDAQ:AURC) stock is down a jaw-dropping 25% today as the company faces continued turbulence surrounding its special purpose acquisition company (SPAC) merger with Better.com. Specifically, Aurora is erasing some of its 223% gains yesterday as the company awaits an Aug. 11 shareholder vote on its potential merger.
What’s up with AURC stock lately?
Well, this blank-check company’s recent volatility is due to the perception of progress regarding its merger with Better.com, a SoftBank Group (OTCMKTS:SFTBY) backed mortgage lender. On Monday, Aurora announced via a securities filing that it had set the merger vote for Aug. 11. This came alongside an update that both Aurora and Better.com had filed necessary forms on July 19 as per the Hart-Scott-Rodino Act.
The new Aug. 11 date is an extension to Aurora’s previous SPAC deadline, which would’ve required the merger to go through by March. That in itself was also an extension.
So, yesterday’s jump — and perhaps today’s fall — is due to the fact that Aurora may soon go through with its long-anticipated merger. Still, at the end of the day, the decision remains in the hands of investors on Aug. 11.
AURC Stock Proves Volatile Ahead of Make-or-Break Merger Vote
Aurora is a blank-check company, meaning the business itself doesn’t do much of anything other than identify a merger target. Indeed, the purpose of SPAC companies like Aurora is to take another business public. Aurora has little-to-no pertinent financial data as it pertains to earnings and revenue.
SPAC mergers have grown in popularity of late as a speedy and easier means of going public without the hiccups and delays associated with traditional initial public offerings (IPOs). A number of major companies have gone public via SPAC mergers in recent years, including Lucid (NASDAQ:LCID) and SoFi (NASDAQ:SOFI). Some celebrities even invest in certain SPACs, given the relative importance shareholders have in determining the fate of their SPAC’s merger decision.
Aurora, which first went public in 2021, has had a notably boring stock price history. Indeed, AURC stock has hovered between $9 and $10 per share for practically its entire existence. That is, until yesterday’s eye-popping surge.
Depending on the results of the Aug. 11 vote, this may represent the start of a new future for Aurora as Better.com’s new publicly traded home.
On the date of publication, Shrey Dua did not hold (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.
