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.
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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.
