Share of the chain of hospitality complexes Selena started trading last Thursday after completing a merger with the SPAC company and since then has been running like a roller coaster for no apparent reason. On its first trading day, the stock initially traded in volatility and fluctuated between decreases and increases, but later began to soar and ended the trading day with a 319% increase.
The next day (Friday) there was a sharp drop in the share price, at a rate of about 63%. So at the end of the week and after two stormy trading days, Selina’s share closed at a price of about $15.1 – which reflects an aggregate increase of about 50%.
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● Fagaia crashed more than 67% in Nasdaq trading, which is probably why
● Selena entered Wall Street at a value of more than a billion dollars
Selina was founded by Rafi Mosari (CEO) and Daniel Rudavsky (Chief Growth Officer) in 2014. The company operates a chain of hospitality complexes that operates in more than 20 countries. At the end of 2021, the company employed 1,673 people.
Revenues of $86 million in 2022
Data published by the company prior to the merger with the SPAC indicated growth in revenues and an increase in losses in 2021. The company ended last year with revenues of $92.7 million, a 167% growth compared to 2020 (the year when tourism was significantly affected by the Corona epidemic), and the net loss increased by 33% to 184 million dollars. The bottom line was affected by an amount of about 103 million dollars of financing costs.
In the first half of 2022, the company’s revenues reached $86 million, a growth of 142% compared to the corresponding half, but the company did not provide data on the bottom line.
Celina completed the merger at an activity value of $942 million, or approximately $1.2 billion after money. It was not reported what was the redemption rate of the shareholders in the SPAC company, meaning how many of them preferred to redeem the investment money rather than participate in the merger.
The volatility in Selina is similar to two other cases of Israeli companies that were merged into SPAC companies recently – Maniyat Stickspay which rose by a three-digit rate on its first trading day, and before that the fintech stock Pagaia .
The latter began trading at the end of June, peaked in August after jumping almost 12 times in two weeks, and has since wiped out 96% of its value. In the case of Fagaya, the sharp increases in the stock led to the lifting of the ban on the sale of the shares by the company’s stakeholders.
In Salina, according to the trading registration documents, it was determined that the block on the sale of shares by those who own 1-5% of the company’s shares will be for a period of 180 days, or until a merger or liquidation event that will allow all shareholders to receive compensation in cash or other securities.
For those who own more than 5% of Selina shares or for the SPAC entrepreneurs, the block is for one year and the conditions for removing it are similar. But it will be possible to advance the removal of the block even if Selina’s share bypasses the price of $12 for 20 days out of 30 consecutive trading days, but those that will start only after 180 days from the completion of the merger.