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Aimei Health Technology (NASDAQ:AFJK) stock is surprisingly down today despite news that the blank-check company will merge with United Hydrogen Group in a special purpose acquisition company (SPAC) merger worth roughly $1.6 billion.

Indeed, United Hydrogen will go public on the Nasdaq through a very fashionable SPAC merger with Aimei, with a new ticker to boot. The deal is expected to complete by the third quarter of this year.

Ma Xia, founder of United Hydrogen, said the following about the news:

“United Hydrogen has been expanding alongside the hydrogen energy market for several years […] We have accumulated extensive knowledge and expertise across the entire hydrogen value chain, assisting clients from various sectors in achieving their green business objectives. Our comprehensive involvement from hydrogen production to end-user applications has led to consistent growth and performance. We are thrilled to partner with AFJK, as we have aligned visions for the market and business model. We are confident that the AFJK team will be instrumental in helping us achieve our long-term goals and success.”

SPAC mergers have become something of a hot new trend in the world of initial public offerings. SPAC mergers allow companies to go public far quicker than through the ordinary IPO process — and with fewer regulatory hurdles.

These types of mergers typically involve blank-check holding companies. A blank-check firm is a publicly traded company whose entire purpose is to merge with a company of its choosing. In doing so, it brings its stock public in the process, shedding its identity in favor of the merged company. A number of big companies have opted to go public via SPAC mergers in recent years, including the likes of SoFi (NASDAQ:SOFI) and DraftKings (NASDAQ:DKNG).

5 Things to Know About the United Hydrogen SPAC Merger and AFJK Stock

1. Following the conclusion of the deal, securities of United Hydrogen Global and newly formed holding company “Pubco” will be traded on the Nasdaq under a new ticker.
2. As part of the deal, all of United Hydrogen’s existing shareholders will “roll 100% of their equity into Pubco.”
3. The deal remains subject to approval by AFJK shareholders and United Hydrogen shareholders, respectively.
4. Aimei is a blank-check company based out of the Cayman Islands.
5. Interestingly, Aimei has only been publicly traded since the start of the year, with AFJK stock currently up 1.8% year-to-date (YTD).
6. United Hydorgen is actually a subsidiary of parent organization Plug Power (NASDAQ:PLUG).

On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.