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Cheche (NASDAQ:CCG) stock is on the move Tuesday after completing its special purpose acquisition company (SPAC) merger with Prime Impact Acquisition I.
Unfortunately, shares of CCG stock have been on a wild ride since the stock went public. For example, the company’s shares underwent a massive rally during normal trading hours on Monday. However, it then lost much of that increased value before markets closed.
That negative movement is continuing today with shares of CCG stock falling 17.1% as of Tuesday afternoon. This comes as some 242,000 shares of the stock change hands. For comparison, its daily average trading volume is around 497,000 shares.
What to Know About the CCG Stock SPAC Merger
Cheche is a Chinese automotive insurance company that got approval from shareholders for the merger earlier this month. However, the company’s trust saw significant drops throughout the year after extension votes for the merger.
For example, 2,725,066 shares were redeemed as of March 1, which dropped its cash held in trust to $48 million. There were even more redemptions in the months following, with the company’s cash held in trust sitting at roughly $4 million.
This, in combination with the recent volatility, means that investors will want to be wary about taking a stake in CCG stock right now. While some traders might be hoping for another rally, there’s no guarantee that will happen.
Coverage of CCG stock isn’t the only news we have worth knowing about on Tuesday!
Our deep dives into the stock market offer up all sorts of stories that traders need to be aware of. Just a few examples of those include what’s happening with car stocks, a stock market crash warning, and the latest news moving shares of AMC Entertainment (NYSE:AMC) stock. You can catch up on all of this news by checking out the links below!
More Tuesday Stock Market News
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.