Jaguar Health (NASDAQ:JAGX) bulls are not messing around today. In fact, shares of JAGX stock are already up 20% following some major company news. So what do you need to know right now?
As a quick recap, Jaguar Health is a biopharmaceutical company that specializes in treating gastrointestinal conditions. Its lead product Mytesi has U.S. Food and Drug Administration approval as an antidiarrheal for individuals who have HIV/AIDs and take antiretroviral medications. Now, the company is seeking to expand the use of Mytesi and explore other GI drugs.
So what has Jaguar Health racing higher today? Well, in addition to its pipeline promise, the company has long been stoking hype in the special purpose acquisition space. Jaguar Health has a subsidiary Napo Pharmaceuticals, and is also working to launch a European subsidiary Napo EU. This soon-to-form subsidiary wants to focus on treating diarrhea in patients with long-haul Covid-19. It also has been in talks to come public via a SPAC.
Today, Jaguar Health announced major moves on that front. Specifically, through a company press release, Jaguar announced it had signed a memorandum of understanding with the lead sponsor of a blank-check company. The SPAC, which Jaguar refers to as the Dragon special purpose acquisition company, is not yet public. However, once it debuts, it intends to merge with Napo EU and take it public on the AIM Italia exchange. Additionally, Jaguar Health identified Josh Mailman as the lead sponsor of the Dragon SPAC. Mailman is an impact investor from New York, with a history. He founded Social Venture Circle, the Threshold Foundation and the Business for Social Responsibility. Now, Jaguar Health says he also serves on the boards of Benefithub, Giving Assistant, Baltix Design and Red Rabbit.
What to Know About the JAGX Stock News
So what does the latest special purpose acquisition company news mean for JAGX stock? Importantly, investors should note that many experts are bullish on such a merger. Jaguar Health had already confirmed its intent to take Napo EU public via SPAC, and we also knew it wanted to list the public company on the AIM Italia. Now, we have confirmation of the specific blank-check company and the lead investor. This comes after another special purpose acquisition company and its sponsors were in talks to take Napo EU public earlier in 2021.
So what about those experts? It is true that many think such a SPAC deal will ultimately benefit JAGX stock. One of those bulls is InvestorPlace contributor David Moadel. Earlier this week, Moadel said investors should consider a long position in Jaguar Health. Behind his argument is the Covid-19 angle, as well as the SPAC plans. With more light now on the latter part of his thesis, Jaguar Health looks perhaps even more enticing.
Keep this news on your radar here.
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.