How do you get your cryptocurrency public company stock to increase by 3,750% over six trading days to reach a high of $550 a share?
Well, Phunware, Inc., a software company that plans on issuing a digital coin “that could be used to pay people who share their personal data with digital marketers,” went public through the back door.
It merged with a special purpose acquisition corporation (SPAC) that was already public. But the number of shares available for trading were about 1/10 what Nasdaq requires because the others were “restricted” and not liquid.
The huge demand drove up the price of the small supply.
As a result, Nasdaq is looking to change its listing qualification rules to not count restricted shares.
A new SEC filing shows that more shares will be coming into the market soon, many held by insiders. (Surprise?)