Galmed Pharmaceuticals (NASDAQ:GLMD) stock is gaining on Friday after the company announced an investment agreement with OnKai.
That agreement has Galmed Pharmaceuticals making a $1.5 million equity investment in OnKai. This saw it leading a $6 million investment round in the artificial intelligence (AI) based healthcare platform.
Galmed Pharmaceuticals’ investment in OnKai gets its $1.5 million in series seed preferred shares of OnKai stock. When converting that into a stake in the AI company, Galmed Pharmaceuticals will own 18% of OnKai stock.
To go along with this, Galmed Pharmaceuticals also gains the right to appoint one person to the OnKai board of directors. Allen Baharaff, CEO of Galmed Pharmaceuticals, is set to take that board seat.
Investors will note that the investment agreement also grants Galmed Pharmaceuticals the right to merge with OnKai. However, the company must do so in the three years following the investment round.
Finally, Galmed Research and Development, a subsidiary of Galmed Pharmaceuticals is now acting as a service provider for OnKai. This will see the two work together on finance, business development, strategic planning, execution, and other matters.
GLMD Stock Movement Today
Galmed Pharmaceuticals stock is experiencing heavy trading following today’s investment news. As of this writing, more than 2.5 million shares of the stock have changed hands. For comparison, the company’s daily average trading volume is about 92,000 shares.
GLMD stock is up 36.8% as of Friday morning.
Investors seeking more of the latest stock market news are in luck!
We have all of the hottest stock market news worth reading about on Friday! Among that is what has Nanobiotix (NASDAQ:NBTX) stock up, the biggest pre-market stock movers this morning, and more. You can catch up on all of this news at the links below!
More Friday Stock Market News
- Why is Nanobiotix (NBTX) Stock Up 107% Today?
- Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Friday
- MULN Stock Alert: The MULN Army Is Betting on the Next Meme Stock
On the date of publication, William White 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.
