Shares of RF Acquisition Corp II (NASDAQ: RFAI) experienced a historic surge on Friday, closing at $58.00 after shareholders overwhelmingly approved the proposed business combination with Nanyang Biologics. The stock skyrocketed 355.6% during the regular session, extending its weekly gain to an astonishing 524.3%. Trading was exceptionally volatile, with shares ranging from a low of $35.22 to a high of $73.00, on volume of 2.85 million shares—more than ten times Thursday's activity.
The approval, announced after the market close on August 21, 2026, removes a critical hurdle for the merger. Of the votes cast, 93.9% favored the business combination, the merger, and the issuance of shares for Nasdaq listing. However, the market's enthusiasm was tempered by a concerning preliminary redemption count. Shareholders submitted redemption requests for 3,956,323 shares, representing 98.95% of the 3,998,108 ordinary shares outstanding after an earlier August redemption. These requests are preliminary and can be withdrawn with company consent, but if they stand, they could dramatically reduce the cash available in the trust and the public float.
According to company disclosures, the trust held approximately $44.52 million after 833,157 shares were redeemed on August 12 at roughly $11.13 per share. Applying that same redemption rate to the new requests implies a potential payout of $44.03 million, leaving a mere $0.49 million in residual trust cash. This estimate underscores the fragility of the deal's financial structure, though the final figures will only be known at closing.
The proposed transaction values Nanyang at approximately $1.5 billion in pre-transaction equity. Existing Nanyang holders will roll over their equity and retain a majority stake in the combined entity, which is expected to trade under the ticker NYB. RF Acquisition Chairman Tse Meng Ng expressed confidence in Nanyang's ability to create lasting value for patients and shareholders, highlighting the company's Vecura platform, which uses artificial intelligence to screen natural compounds. Nanyang claims to have screened 700,000 compounds in five months and expanded its library to over 1.5 million compounds.
Friday's price action was a stark departure from the SPAC's typical trading pattern. The stock ended Monday at $9.29, then climbed steadily to $10.00, $11.19, and $12.73 before the explosive rally. The close represented a 421.1% premium over the approximate redemption value. Despite the surge, sell-side coverage remains thin, with MarketBeat listing only one recommendation—a Sell from Weiss Ratings—and no published price targets. No Buy or Hold ratings are available in that dataset.
RF Acquisition remains a shell company until the deal closes. At June 30, it held just $10,191 in cash outside the trust and reported a $1.28 million working-capital deficit. Management has also cited substantial doubt about the company's ability to continue as a going concern. These factors highlight the speculative nature of the investment, even after Friday's rally.
Looking ahead, investors will closely monitor the final redemption count, the exact trust proceeds, and the timing of the closing. A confirmed tiny float could sustain high volatility, while withdrawals of redemption requests would alter both liquidity and the cash available to the combined company. The deal still faces potential failure, and the risks include dilution, additional financing needs, and the inherent clinical and regulatory hurdles of Nanyang's drug pipeline.
For now, the market has priced in a successful merger, but the massive redemption requests cast a shadow over the company's financial viability. The coming days will be crucial in determining whether this surge is sustainable or a prelude to a sharp correction.
