Armada Acquisition Corp. II Shares Surge Ahead of Evernorth Merger
Shares of the shell company Armada Acquisition Corp. II rose 273% last week as the market prepares for its upcoming merger with XRP treasury firm Evernorth.
Armada Acquisition Corp. II saw its share price climb roughly 273% last week, trading at nearly four times its trust value ahead of the company's planned merger with Evernorth. The stock closed at $39.42 on Friday, up from $10.58 the previous week, and continued to rise in pre-market trading on Monday.
The merger between the special purpose acquisition company and the XRP treasury firm is expected to close on Oct. 7. The combined entity is slated to begin trading on Oct. 8.
The sharp price movement follows indications that a significant portion of the trust funds may be returned to shareholders. Quarterly filings from June showed the trust held $241.2 million, but recent announcements suggest only $48 million will remain for the transaction. This implies that approximately 80% of the trust money will be redeemed, which can reduce the number of publicly traded shares and lead to increased price volatility.
Upon closing, Evernorth expects to hold about 473 million XRP, valued at roughly $714 million based on a price of $1.51 per token. The company's financing for the deal includes $225 million from private placements, $30 million in convertible notes, and the remaining $48 million from the trust.
Some of the XRP held by the company was purchased at a higher cost basis. Evernorth previously spent $214.1 million to acquire 84.4 million XRP through the end of 2025, averaging about $2.54 per token. That specific holding is currently valued at approximately $127 million.
