Biopharma stocks have been hot, as buyers race to track down the most exciting, cutting-edge companies before they reveal their optimistic clinical trial data. But there’s one play that’s attracting attention for some different reasons. Intec Pharma (NASDAQ:NTEC) also has investors interested for its short-squeeze potential and an upcoming merger. So, what’s the deal with NTEC stock?
NTEC is a big winner on today’s trading session.
The stock gained over 48% on the day. Intec Pharma also saw 34 million shares trading hands against the daily average of less than 1 million. There’s a lot to unpack in regard to NTEC’s short interest, business model, and coming merger. Here’s what you need to know.
NTEC Stock Speaks to Investors on Multiple Levels
- Intec Pharma is a clinical-stage biotech company, based in Israel.
- Intec focuses its efforts on the development of drugs using its proprietary Accordion Pill technology.
- The Accordion Pill is a drug delivery technology which promises to improve the efficacy of existing drugs with improved gastric retention and a slower release of the drug.
- NTEC stock has been on Reddit trader’s radars for some months now, seeing interest on smaller retail trading subreddits.
- The stock is also one which sees interest from short-squeeze investors. It currently has a short volume ratio of 23%.
- Lots of investors have been tuning into NTEC stock since the announcement of its merger with Decoy Biosystems, a biotech outfit which develops products to target tumors and viruses.
- The merger, set to close in the coming days, is being preceded by a private placement and a reverse share split.
- Intec Israel will be conducting a 1-for-4 reverse share split. The split will convert every four Israeli shares for a U.S. share of the company.
- After this, Intec Israel will merge with a SPAC subsidiary of Intec U.S. This will form the entity that’s officially merging with Decoy.
- After the domestication merger, and before the Decoy merger, the company is conducting a private placement, which will see an expected $30 million fundraise for Intec.
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.
On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.
Read More: Penny Stocks — How to Profit Without Getting Scammed
