Check-Cap (CHEK) stock rocketed higher on Monday after the medical technology company announced a merger deal with embodied artificial intelligence (AI) company MBody AI. If approved, the combination would create a company focused on embodied AI for the autonomous workforce. This company would be renamed MBody AI Ltd, and 90% of its shares would be held by MBody AI investors, with the remaining 10% belonging to Check-Cap shareholders.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
MBody AI wants to lead the embodied AI market, which Morgan Stanley expects to reach $40 trillion by 2050. The company is already developing a proprietary AI stack that allows systems to learn, adapt, and optimize in real time. MBody AI’s initial focus is on the hospitality industry but it plans to expand to the warehousing, office management, and healthcare sectors too.
Check-Cap investors have to approve the deal before it can close. They will note that the company’s legacy medical business will continue operations after the merger. That includes ongoing research and development of medical devices and the maintenance of its patent and intellectual property portfolios.
Check-Cap Stock Movement Today
Check-Cap stock was up 383.98% on Monday, following an 8.73% rally on Friday. The shares were down 24.66% year-to-date and 59.02% over the past 12 months. Today’s news brought heavy trading, as some 67 million shares changed hands, compared to a three-month daily average of about 1 million units.
Is Check-Cap Stock a Buy, Sell, or Hold?
Turning to Wall Street, analyst coverage of Check-Cap is lacking. Fortunately, TipRanks’ AI analyst Spark has it covered. Spark rates CHEK stock an Underperform (26) with no price target. It cites “a lack of revenue generation and persistent losses” as reasons for this stance.
