A new SPAC (special purpose acquisition company) play is catching the eyes of investors today. The second half of 2021 looks like it will be filled with hot initial public offerings (IPOs) and SPAC mergers like Robinhood and Aurora. Now, a new play will be blending the hype of a new public offering with the pandemic-fed hype toward biotech plays. GX Acquisition (NASDAQ:GXGX) is announcing today their plans to make an attractive biotech outfit public in the newest GXGX merger news.
GX Acquisition is the newest shell company to take a private entity to market. Today, they are making known their selection in Celularity. Celularity is a New Jersey-based biotechnology outfit that specializes in the treatment of cancer and degenerative diseases. The company takes on these persistent and devastating illnesses by harnessing the power of placenta-based stem cells. Most recently, the company launched its T-cell program, in which it is developing treatments against tumorous growths using mutated placental cells.
GXGX Merger With Celularity Announced, GXGX Stock Sees Big Gains
Today, GX is happily announcing the closure of its merger with Celularity. The transaction is already paying off well for Celularity; proceeds from the transaction total a cool $138 million. Investors can look forward to Monday’s trading session, as Celularity will be taking over on the Nasdaq with the ticker symbol “CELU.” In the meantime, the GXGX merger is elevating the SPAC’s stock value.
CEO of GX Dean Kehler is speaking excitedly about Celularity’s prospects after seeing a listing. He says the listing “will enable Celularity to continue to leverage the company’s commercial and clinical stage assets to treat diseases of high unmet need.”
Analysts are clamoring ahead of the CELU listing, like Market Realist, which called the stem-cell play “risky but attractive.” Perhaps one of the most appealing aspects of Celularity is its recent partnership with Peter Thiel’s Palantir Technologies (NYSE:PLTR). The partnership is providing Celularity with fresh cash for furthering its resources. It also ties Celularity to one of the most attractive tech plays on the market right now.
GXGX stock is soaring ahead of the news. The stock is seeing gains of over 34% since the news broke. 15 million shares are exchanging hands today as well, high above GXGX’s daily average volume of 313,000.
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.