What happened

Shares of Forum Merger II (FMCI), the special purpose acquisition company that plans to soon bring plant-based foods maker the Tattooed Chef public through a reverse merger IPO, are having a good day Wednesday, rising 12.3% in midday trading.

So what

Why are these shares rising in the absence of any analyst upgrades, price target changes, or any other news of note? I suspect the answer is as simple as was stated up above.

Forum Merger II will absorb Tattooed Chef, renaming itself to that in the process. Plans are to effect this merger this very quarter -- Q3 2020.

In short, ever since the third quarter began, the clock began ticking faster toward a de facto IPO of Tattooed Chef. No one knows precisely when it will happen, but investors appear to be betting that once it does happen, shares of a newly public Tattooed Chef will surge.

Block letters spelling out IPO

Image source: Getty Images.

Now what

That could turn out to be a self-fulfilling prophecy. Since Q2 ended and Q3 began on Sept. 1, shares of Forum Merger II are already up a staggering 50% on no news other than the upcoming merger and IPO.  

The only question now is how much more the stock will go up before the merger happens ... and whether there will be any more room for the stock to rise after it happens.