Why Is Check-Cap (CHEK) Stock Up 44% Today?


  • Check-Cap (CHEK) stock is up alongside business combination plans.
  • The company will combine with Nobul AI.
  • This will have Nobul AI taking over the operations of the combined company.
CHEK Stock - Why Is Check-Cap (CHEK) Stock Up 44% Today?

Source: Shutterstock

Check-Cap (NASDAQ:CHEK) stock is on the rise Tuesday as the clinical-stage medical diagnostics company announces a business combination with Nobul AI.

This deal will have Check-Cap hand of the reigns of the company to Nobul AI’s leadership team and shareholders. It will also result in the public company switching focus to the latter’s artificial intelligence (AI)-driven fintech marketplace business.

Paul Medeiros, Chairman of the board of directors at Check-Cap, said the following about the deal:

“Following a comprehensive and thorough review of strategic alternatives, Check-Cap’s Board of Directors concluded that the proposed transaction with Nobul is in the best interest of our shareholders. We intend to hold a special meeting of Check-Cap shareholders in the coming months to vote on this business combination.”

The Check-Cap Board and Nobul AI Board have already approved the deal. Now, they just need approval from regulators and shareholders. Kingswood Capital Partners LLC and ArcStone Securities and Investment Corp. acted as advisors to Check-Cap concerning the deal.

CHEK Stock Movement on Tuesday

News of the business combination brings with it heavy trading for CHEK stock. That has more than 6 million units changing hands as of this writing. This is above its daily average trading volume of about 20,000 shares.

CHEK stock is up 44% as of Tuesday morning.

Investors can find more of the most recent stock market stories below!

We have all of the hottest market news ready to go on Tuesday! Among that is why shares of Stoke Therapeutics (NASDAQ:STOK) stock is up, the biggest pre-market stock movers this morning and more. All of this news is ready to go at the following links!

More Stock Market News for Tuesday

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

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.

Article printed from InvestorPlace Media, https://investorplace.com/2024/03/why-is-check-cap-chek-stock-up-44-today/.

©2024 InvestorPlace Media, LLC