What's Going On With CleanTech Acquisition Stock Today?

CleanTech Acquisition Corp (NASDAQ:CLAQ) shares are trading lower Wednesday after shareholders approved the company's proposed merger with Nauticus Robotics. 

It appears investors had been anticipating a high number of redemptions during the merger process, but according to CleanTech's regulatory filing, just 361,986 shares of the company's common stock were tendered for redemption.

SPACs often have redemption rights, which give investors the right to sell their shares back to the acquisition company for net asset value if they don't want to own the proposed company.

The redemption of SPAC shares reduces the amount of outstanding shares which also leads to a decline in the amount of shares available to short. As a result, high redemption rates can often induce short squeezes. In CleanTech's case, redemptions were lower than anticipated, which appears to be fueling the stock's sharp declines on Wednesday. 

Nauticus Robotics is a developer of cloud-based subsea robots, software and associated services. 

CLAQ Price Action: CleanTech shares were down 31% at $6.52 at time of publication, according to Benzinga Pro.

Photo: Pexels from Pixabay.