Shares of Armada Acquisition Corp. II, the SPAC poised to take Evernorth public, fell 50.3% to $19.20 on Tuesday, according to data from StockAnalysis. The decline followed a steep drop from a high of $53 reached on Oct. 2 after a speculative surge earlier in October. The company had originally planned to list on Nasdaq on Oct. 8, but Evernorth announced an administrative delay on Oct. 6, pushing the merger completion to around Oct. 9 and the Nasdaq debut to approximately Oct. 12. Evernorth stated the delay would not affect the merger's closing.

The stock's volatility intensified after shareholders approved the transaction on Sept. 30. It surged to $53 on Oct. 2, peaked at $39.42 the next day, and closed at $38.65 on Oct. 5 before collapsing to $19.20 on Tuesday. Despite the drop, the shares remained about 81% above their Sept. 28 close, reflecting early investor enthusiasm.

Armada reported 23 million shares subject to redemption as of June 30, supported by $241.2 million in its trust account, or roughly $10.49 per share, per its SEC filing. Evernorth later indicated only about $48 million of that trust would remain for the combined entity, suggesting redemptions near 80%. The exact redemption count has not yet been disclosed, so the remaining public float is still an estimate.

Heavy redemption activity can limit available shares, amplifying price swings when demand surges and then reverses. XRPN's movements thus reflect demand for a SPAC nearing completion rather than the long-term value of the merged company. Evernorth aims to become the largest publicly traded firm focused on an XRP treasury, holding approximately 473 million XRP and raising about $300 million in gross proceeds, including $225 million from private placements and $48 million from Armada's trust. Backers include Ripple, SBI Group, Arrington Capital, Pantera Capital, Kraken, and GSR.

CEO Asheesh Birla described the vehicle as more than a shell around XRP, planning to grow XRP exposure per share over time. The merger will also introduce additional equity sources, such as warrants, which may affect the final share structure. Final redemption figures and cash contributions from the trust will be critical for investors assessing the company's true value post-merger.