Shares of Armada Acquisition Corp. II (XRPN) closed at $19.20 on Tuesday, a 50.3% drop from $38.65 the previous day, according to StockAnalysis data. The decline erased most of a near-quadrupling rally that had lifted the SPAC to a $53 session high on Oct. 2.

Armada trades under the XRPN ticker pending its merger with Evernorth, a planned XRP-treasury company. In an Oct. 6 SEC filing, Evernorth said an administrative delay had pushed closing to around Oct. 9 from Oct. 7. Trading of the combined company on Nasdaq is now expected around Oct. 12.

What triggered the reversal?

Armada shareholders approved the Evernorth transaction on Sept. 30. The stock then closed at $23.43 on Oct. 1, hit $53 the next session, and finished that day at $39.42. XRPN held steady at $38.65 on Oct. 5 before halving the following day.

Even after the collapse, XRPN remained roughly 81% above its Sept. 28 close of $10.58. That gap illustrates how quickly speculative capital rotated into the vehicle after the shareholder vote — and how abruptly it exited once redemption math became clearer.

How thin will Evernorth's public float be?

Armada disclosed 23 million shares subject to redemption at June 30, backed by $241.2 million in its trust — about $10.49 per share, per the SPAC's most recent quarterly filing. Evernorth subsequently said only about $48 million of trust proceeds are expected to remain for the combined company.

Applied to Armada's June redemption value, that residual implies roughly 4.6 million shares surviving from the original 23 million redeemable — a redemption ratio approaching 80%. The companies have not yet disclosed the final count, so the figure remains an estimate.

That arithmetic matters operationally. Heavy SPAC redemptions leave few shares available for trading, magnifying moves when speculative demand spikes and reversing just as sharply once that demand fades.

What does Evernorth actually bring to market?

The combined entity expects to hold about 473 million XRP at closing, alongside roughly $300 million in gross cash proceeds. That figure includes $225 million from private placements, $30 million from a convertible-note financing, and approximately $48 million remaining from Armada's trust before transaction expenses.

Investors backing the transaction include Ripple, SBI Group, Arrington Capital, Pantera Capital, Kraken and GSR, according to Evernorth's Oct. 1 announcement.

CEO Asheesh Birla has positioned the vehicle as more than a passive XRP wrapper. "Evernorth plans to deploy capital across the XRP ecosystem to increase XRP exposure per share over time," Birla said in announcing the PIPE commitments.

What comes next

The Oct. 12 trading debut will deliver the first market-clearing price for those claims. Shortly after closing, Evernorth is expected to publish its final redemption tally, the cash actually delivered from Armada's trust, and the combined company's full share structure — data points that will let investors separate the stated capital-deployment strategy from the temporary scarcity of pre-merger XRPN shares.

Armada's outstanding warrants will also become exercisable around the same window, adding a further source of potential equity supply to the post-merger float.