Topps SPAC Falls On Rival Launch, AMC Movement: Why MUDS Shares Are Rebounding Wednesday

Shares of a company that announced a SPAC deal with a trading card company suffered a decline Tuesday due to two major reasons, though shares are quickly rebounding Wednesday.

Here is what investors should know.

What Happened: Mudrick Capital Acquisition Corporation II MUDS announced a SPAC merger with trading card company Topps earlier this year.

Mudrick Capital, the sponsor of the SPAC, was part of a private placement for $230.5 million in shares with AMC Entertainment Holdings Inc AMC. It was reported later that Mudrick Capital sold its shares for a profit and was turning bearish on the company.

As a result, followers of AMC began to circulate the MUDS ticker around and the stock quickly became a target of investors looking to short shares and buy puts on the SPAC.

Shares of MUDS also fell as a new NFT company was launched by Fanatics, Michael Novogratz and Gary Vee that's launching with MLB NFTs. The announcement was seen as a rival to Topps, which has launched NFTs of its MLB trading cards.

Related Link: Trading Card Company Topps Announces SPAC Deal, Continued NFT Expansion

Wednesday Rebound: Shares of Mudrick Capital are trading higher Wednesday on news that the company will continue to release MLB NFTs in the future.

Topps reported that first-quarter sales were $166.6 million, a 55% year-over-year increase.

“The strong momentum we experienced last year has continued in 2021 and we are excited about our growth opportunities over the near and long term,” said Topps CEO Michael Brandstaedter.

Topps also confirmed it's working partnership with Major League Baseball and plans for additional non-fungible tokens in the future.

“Topps is one of our oldest and most important MLB licensees and we look forward to continuing to work with them to bring new MLB-licensed trading card products in physical, digital and NFT forms to market,” said Major League Baseball Chief Revenue Officer Noah Garden.

Topps has cleared up speculation that they would lose the rights to MLB NFTs from the launch of a rival. Shares are rebounding Wednesday on the company's press release. 

Price Action: Shares of Mudrick Capital Acquisition Corporation are up 7% to $12.37 on Wednesday.