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Here’s Why Grindr’s (NYSE:GRND) Shares Declined 46% on Monday
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Here’s Why Grindr’s (NYSE:GRND) Shares Declined 46% on Monday

Story Highlights

Dating app Grindr’s SPAC deal with Tiga is not going as planned, and investors are becoming aware of this.

Social networking platform provider Grindr (NYSE:GRND) stock plummeted 46% on Monday after witnessing a stratospheric 515% surge on Friday. Interestingly, an 8-K filing by Tiga Acquisition revealed that 98% of shareholders redeemed their investments at $10.50 per share rather than sit through the merger. This could be one of the reasons behind the sharp dip just one day after the merger.

The LGBTQ dating app had expected to raise around $284 million in cash proceeds from Tiga’s share sales and $100 million from forward purchase agreements. Unfortunately, Grindr will now be able to raise a materially lower amount from the 2% of shareholders who did not redeem their shares.

Since When Is Grindr on the Stock Exchange?

Grindr had a grand debut on the NYSE following the completion of its SPAC merger with Tiga Acquisition on Friday.

The combined company was valued at around $2.1 billion when the merger agreement was inked in May.

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