What’s happening with OTR Acquisition stock today?

OTR Acquisitions Company Shares of (NASDAQ:OTRA) are trading higher on Wednesday after the company filed its Form 8-K with the U.S. Securities and Exchange Commission, a move that appears to be related to a large number of investors opting for buyouts.

According to the filing, holders of a total of 9,769,363 shares of the company’s stock repurchased their shares in connection with the proposed business merger with Comera Life Sciences.

The total before redemptions was 10,447,350 shares. Only 677,987 shares were subject to redemption but were not redeemed.

Special purpose acquisition companies, or SPACs, often have redemption rights that give investors the right to sell their shares back to the acquiring company for its net asset value.

Redemption of SPAC shares reduces the number of shares outstanding, which simultaneously leads to a reduction in the number of shares available for sale. As a result, high redemption rates can often result in short selling.

OTR Acquisition expects the business combination to occur no later than May 19.

See also: ‘We faced unexpectedly high costs’: why Target shares are falling today

OTR price action: OTR Acquisition shares were up 6.92% to $10.98 at the time of publication.

Photo: Lorenzo Cafaro from Pixabay.