Vallon Pharmaceuticals (NASDAQ:VLON) stock is rocketing higher on Wednesday as investors react to news of a merger agreement with GRI Bio.
According to a press release, GRI Bio will combine with a subsidiary of Vallon Pharmaceuticals. Once the merger is complete, the new company will operate under the GRI Bio name and trade under the GRI ticker.
With this change, the merged company will also focus on GRI Bio’s pipeline of products. Of particular interest are its NKT cell regulators. These are being developed to treat inflammatory, fibrotic and autoimmune diseases.
Details of the Merger
Vallon Pharmaceuticals’ subsidiary will obtain all outstanding equity interests of GRI Bio. Afterward, this will result in GRI Bio equity holders having 83% of the outstanding equity in the combined company. The remaining 17% will belong to current Vallon equity holders.
The boards at Vallon and GRI Bio have both given their unanimous support to the merger. Once regulators and shareholders sign off on it, the deal should close during the first quarter of 2023.
Today’s news has VLON stock seeing heavy trading volume. As of this writing, more than 59 million shares of the stock have been traded. That’s a massive surge over its daily average trading volume of about 422,000 shares.
VLON stock is up 94.8% as of Wednesday morning but is down 93.2% year-to-date (YTD).
Investors seeking out more of the latest stock market news will want to keep reading!
InvestorPlace is home to all of the hottest stock news traders need to know about on Wednesday! Among that is what has shares of QuantumScape (NYSE:QS), SolarEdge (NASDAQ:SEDG) and MicroAlgo (NASDAQ:MLGO) stock moving today. You can catch up on all of that news at the links below!
More Wednesday Stock Market News
- Why Is QuantumScape (QS) Stock Down 7% Today?
- SEDG Stock Alert: SolarEdge Gets Boost From Barclays Upgrade
- MLGO Stock Alert: What to Know as MicroAlgo Starts Trading
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On the date of publication, William White did not hold (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.
