Cantor Equity III Stock Dives 4.86% to Record Low Amid Merger Legal Scrutiny Valuation Concerns

The share price dropped to a record low today, with an intraday decline of 4.86%.

Cantor Equity III’s stock slump followed the announcement of its proposed merger with Air Limited, a leading flavored hookah producer, finalized on November 7. The deal, which exchanges one share of the combined entity for each Cantor III share, aims to take Air Limited public via a SPAC structure. However, concerns persist over whether the terms fairly value Cantor’s existing portfolio or anticipate post-merger synergies. Meanwhile, a class action investigation by Monteverde & Associates PC has raised legal uncertainties, scrutinizing potential securities law violations related to the merger’s disclosures.

Investor sentiment remains fragile as the merger’s success hinges on regulatory approvals and market acceptance of Air Limited’s growth prospects. The 1:1 share ratio and unresolved legal scrutiny have fueled volatility, with shareholders weighing long-term potential against short-term risks. Delays in approvals or adverse legal outcomes could further erode confidence, while a smooth transition might stabilize the stock. The dual pressures of strategic opportunity and compliance challenges underscore the precarious balance Cantor faces in its post-merger trajectory.