Today marks the first day of trading for $Redbox Entertainment(RDBX.US)$. The latest in a string of SPAC mergers, Redbox has seen impressive interest today.
RDBX stock soars on debut trading more than 60% higher.
Indeed, it appears investors like what they see with this digital entertainment company. Redbox is most commonly known for the DVD kiosks it has placed across various retail locations in the U.S. and around the world. However, the company has moved from physical DVD sales to an on-demand and free ad-supported streaming model.
Given the interest in the streaming space of late, today's price action on Redbox's opening day may not be surprising. However, considering how other SPAC mergers have performed lately, this is a welcome surprise for early investors in this SPAC.
Let's dive into a few things investors may want to know about Redbox.
What to Know As RDBX Stock Begins Trading
Redbox officially went public today, completing its merger with Seaport Global.
This SPAC deal provided $88 million in aggregate proceeds to Redbox.
The company expects to use these funds to grow its streaming services business and pay down debt.
The company aims to create "a one stop experience that spans multiple entertainment mediums and simplifies the streaming experience."
Redbox has used data obtained from its physical DVD kiosks to advise its digital offerings.
Investors betting on RDBX stock are hopeful this transformation will yield fruit.
Redbox is listed on the Nasdaq with more than 45 million shares outstanding. According to filings, 2 million shares will make up the immediately tradeable float.