Hotel101 Global Holdings Corp. shares drop 10.37% in after-hours following business merger and market capitalization mismatch.

Hotel101 Global Holdings Corp. plunged 10.37% in after-hours trading, following the completion of its business merger on June 30, which led to the suspension of JV SPAC Acquisition Corp. stock and the conversion of each share into one share of Hotel101 Global stock (HBNB), which began trading on Nasdaq on July 1. The merger resulted in changes to the share structure and market adjustments. Additionally, the deemed equity value of the merged entity was $2.3 billion, but the market capitalization on July 1 was $7.465 billion, causing a valuation mismatch.