CURO's stock skyrockets as company is set to cash in on its investment in Katapult
Shares of CURO Group Holdings Corp. skyrockted 72% toward a 13-month high in very active morning trading Friday, as the provider of credit to non-prime consumers said it set to cash in from Katapult Holding Inc.'s move to go public through a reverse merger with special purpose acquisition company (SPAC) FinServ Acquisition Corp. , in a deal implying an enterprise value for Katapult of about $1 billion. Trading volume swelled to 3.3 million shares, compared with the full-day average of about 146,200 shares. Based on the fact that CURO owns about 40% of Katapult, the merger deal will provide CURO a consideration of $365 million, consisting of a combination of cash and stock in the new company. So far, CURO said it has made a total cash investment in Katapult of $27.5 million. Once the deal closes, CURO expects to receive $125 million in cash and retain an ownership stake of 21% of the new public company. CURO's stock has climbed 24.1% year to date, while the S&P 500 has gained 14.8%.
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