Allego NV (NYSE:ALLG) shares are trading significantly higher Wednesday after the company announced the completion of its SPAC merger agreement with Spartan Acquisition Corp, which resulted in 98% of the company notes being redeemed at the merger vote.

More than 54 million shares of Spartan common stock were redeemed and converted into the right to receive a pro rata portion of the funds in the acquisition company's trust account in cash. As a result, the company will pull about $540 million from its trust to pay redeeming shareholders.

At redemption time, all redeemed shares cease to be outstanding which lowers Allego's total float size.

The unexpected low float is often a contributing factor to increased volatility. The company appears to be gaining retail investor interest following merger completion.

Allego offers end-to-end charging solutions for electric vehicles.

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ALLG 52-Week Range: $7.42 - $13.39

The stock was up 21.4% at $10.05 at time of publication.