Blank-check company Big Rock Partners (NASDAQ:BRPA) is certainly making big moves in the stock market today. In fact, shares of the SPAC are up more than 70%. But without any recent company news or press releases, what do investors need to know about BRPA stock?
To start, investors should know that Big Rock Partners is a special-purpose acquisition company. And beyond that, the company recently confirmed it will take NeuroRx public. Ahead of the NeuroRx SPAC merger, BRPA stock has been climbing higher.
With that in mind, here are 14 things to know about BRPA stock and the NeuroRx SPAC merger:
- Big Rock Partners Acquisition has been in the public markets since November 2017.
- At that time, it raised $69 million through its initial public offering.
- Investors should note that BRPA stock is therefore one of the older SPAC stocks on the market.
- When it first came public, Big Rock Partners said it wanted to focus on the senior housing and broader care industry.
- However, in the years since, it has extended its deadline to choose a business combination several times.
- Most recently, the company extended this timeline in February 2019.
- With this in mind, Big Rock Partners just announced its plans to bring NeuroRx public.
- According to the press release, the combined company will have a value of $500 million.
- Importantly, NeuroRx is a clinical-stage small molecule pharmaceutical company.
- Investors should also note that it specializes in treatments for both Covid-19 and bipolar depression.
- Once it comes public, NeuroRx wants to use the SPAC merger proceeds to expand its pipeline into other central nervous system research.
- And when the NeuroRx SPAC merger closes, BRPA stock will become NRXP.
- NRXP stock will then continue to trade on the Nasdaq Exchange.
- Lastly, the NeuroRx SPAC merger should close in the first half of 2021.
BRPA Stock and the NeuroRx SPAC Merger
So why should investors pay BRPA stock any attention? And why are shares up 70% ahead of the NeuroRx SPAC merger?
Beyond the broad appeal of special purpose acquisition companies, investors may be rushing to BRPA stock because of NeuroRx. What do I mean? Well, the two candidates that NeuroRx focuses on are rather appealing. The first is Zyesami, a drug the company is studying for coronavirus-related respiratory failure. As we continue to hear more about the worsening Covid-19 pandemic, BRPA stock represents a way to get in on the ground floor of a potential treatment.
Additionally, the second drug from NeuroRx is NRX-101. This second drug is for suicidal bipolar depression and PTSD. Another unfortunate aspect of Covid-19 is the spike in mental illness. Therefore, the NeuroRx SPAC merger represents two critical areas in pharmaceuticals.
So what should investors do with BRPA stock here? Be careful. Big Rock Partners Acquisition has been in the market for quite some time before shooting up. Additionally, huge share price moves have triggered limit up limit down pauses in recent days. Until we know more about why BRPA is skyrocketing, caution is certainly warranted.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer with InvestorPlace.com.