Ares Acquisition Corporation II (AACT) experienced a notable rise of 6.42% in after-hours trading on Tuesday, pushing its share price up to $9.45. This positive movement came shortly after the firm announced it successfully secured funding for its proposed merger with Kodiak Robotics, a leader in autonomous vehicle technology.
Institutional investors, including Soros Fund Management, led by George Soros, and Cathie Wood’s ARK Investments, have committed over $212.5 million through PIPE financing for the merger. This sum far exceeds the initial $100 million target. Combined with approximately $62.9 million left in the trust account, the total fund exceeds $275 million, excluding expenses.
Don Burnette, CEO of Kodiak Robotics, expressed confidence in the transaction, saying the substantial funds raised underscore strong investor confidence in Kodiak.
Following the merger, the new entity aims for a listing on NASDAQ, trading under “KDK” for common stock and “KDKRW” for warrants, subject to meeting required listing and closing conditions.
Over the past year, AACT shares have decreased by 17.78%, with the share price peaking at $11.54 on June 2. In the last six months alone, the asset’s value has dropped by 20.57%. The company, based in New York, has had its stock prices range from $8.64 to $11.62, with a market capitalization of $549.31 million and an average trading volume of 464,430 shares. The current price-to-earnings ratio stands at 33.99.
During Tuesday’s session, AACT closed at $8.88, marking a 22.11% drop before it recovered in after-hours trading. Data from Benzinga indicates that AACT exhibits a positive price trend across various time frames despite previous declines.
This development highlights the ongoing support for autonomous vehicle technology and reflects investors’ optimism in Kodiak Robotics’ future potential.