Why OTR Acquisition Shares Are Soaring Today

Shares of a SPAC are trading significantly higher Friday after a large portion were redeemed as part of the SPAC process.

What Happened: OTR Acquisition Corp OTRA completed Thursday its merger vote with Comera Life Sciences.

A total of 10.3 million shares, representing 98.4% of all OTR Acquisition shares were redeemed as part of the merger. As a result, only 168,000 shares of OTR Acquisition remain tradeable.

“Up there with one of the highest % redemptions on record,” SPAC expert Julian Klymochko tweeted.

There is no PIPE funding on the SPAC deal, which could increase the chances that the company needs to do financing to fund future growth as it will get a fraction of the proceeds it originally projected. There is also some risk that the deal will close given the low capital and high redemptions.

Comera is developing biologic medicines to improve safety for patient using its formulation platform SQore. The company said it was planning to collaborate with pharmaceutical and biotechnology companies when it announced its SPAC deal.

Companies that have low floats and have completed their SPAC vote have often traded higher and seen several halts.

OTRA Price Action: OTR Acquisition shares were up 105% to $20.30 in after-hours trading Thursday; In Friday's premarket session, the stock was up about 46% at press time.