Why is Rising Dragon Acquisition stock surging today?

Rising Dragon Acquisition Corp. stock surged 115.0% in pre-open trading today, reaching $10.97, after the company disclosed the mutual termination of its merger agreement with HZJL Cayman Limited, a deal that had been in place since January 2025 and was set to create a combined entity operating as Xpand Boom Technology Inc. on Nasdaq. The termination, which took effect October 30, 2026, was approved by the boards of both companies, with neither party required to pay a termination fee, and both sides agreeing to release each other from claims related to the original agreement.

Rather than signaling distress, the announcement was accompanied by a forward-looking commitment from Rising Dragon’s management to continue pursuing an initial business combination with a new target within the timeframe permitted under its governing documents — a posture that appears to have been interpreted by traders as an opportunity for a fresh, potentially more favorable deal. The stock’s micro-cap SPAC structure, with a very limited tradeable float following prior shareholder redemption cycles, means that even a small surge in buying interest can produce dramatic price swings, a pattern that has characterized RDAC’s trading history on multiple occasions.

The broader market provided little in the way of a macro tailwind on the day, with the S&P 500 slightly negative, the Dow Jones under more meaningful pressure, and the NASDAQ modestly in positive territory — confirming that today’s move is driven entirely by company-specific developments rather than any sector-wide or index-level momentum.

Taken together, the combination of a clean merger exit with no financial penalties, a stated intention to pursue a new deal, and the stock’s structurally thin float created the conditions for an outsized pre-market move — one that carried the hallmarks of a low-float squeeze layered on top of a genuine corporate catalyst.