Concorde International Group Ltd. (CIGL) shares tumbled Thursday, reversing what looked like celebration mode after the stock jumped 61.11% in after-hours trading Wednesday on merger news. Turns out the market had second thoughts.

The Deal Structure

Concorde disclosed in an SEC filing that it's merging with Hong Kong-based YOOV Group Holding Limited, a deal that values the AI company at $600 million. YOOV specializes in artificial intelligence-as-a-service solutions, providing business automation through a cloud platform.

The structure is straightforward: YOOV becomes a wholly owned subsidiary of CIGL, and YOOV equity holders walk away with 200 million newly issued Class A ordinary shares. The math works out to a $3 per share reference price for Concorde stock, supporting that $600 million valuation on a fully-diluted basis.

What Needs to Happen

The merger needs two green lights: CIGL shareholder approval and Nasdaq listing authorization. The shareholder vote looks like a formality, though. Swee Kheng Chua controls 97.56% of voting power and has already committed to voting yes.

If everything closes, Concorde plans to add "YOOV" to its corporate name and switch to a new Nasdaq ticker symbol.

Where the Stock Stands

Concorde shares closed down 18.70% at $2.18 Thursday, trading uncomfortably close to the stock's 52-week low of $1.40.