Benzinga - by Vandana Singh, Benzinga Editor.
Check-Cap Ltd (NASDAQ:CHEK) shares are trading higher after Nobul AI Corp, on Monday, agreed to acquire Check-Cap, under which the shareholders of Nobul will become the majority holders of the combined company.
If completed, the business combination will create a public company headquartered in Toronto, Canada, focused on an AI-driven fintech marketplace and buying and AI-enabling traditional companies to generate higher returns for their shareholders.
In connection with the transaction, the combined company will apply for listing on the NASDAQ and TSX.
The executive team of Nobul will serve as the executive team of the combined company, led by Regan McGee, Nobul’s Founder, Chief Executive Officer, and Chairman.
“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,” said Paul Medeiros, Chairman of the Board of Directors of Check-Cap.
“The proposed business combination with Check-Cap is expected to be a transformative step forward in the execution of our mission to deliver value to our shareholders. Nobul has a proven track record of successful M&A and PE transactions, and this merger will give us a platform to pursue many more of these opportunistic transactions as a public company,” stated Mr. McGee.
Nobul is an AI-driven fintech company offering a category-leading technology solution for home buyers and sellers.
Check-Cap is a clinical-stage medical diagnostics company aiming to redefine colorectal cancer (CRC) screening by introducing C-Scan, a preparation-free screening test to detect polyps before they may transform into colorectal cancer and enable early intervention and cancer prevention.
C-Scan is an investigational device and is not available for sale in the United States.
Price Action: CHEK shares are up 36.9% at $2.69 during the premarket session on the last check Tuesday.
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