Penny Stock Check-Cap Has Nearly Doubled Its Value Today – What’s Going On With MBody AI Merger?

Check-Cap on Monday received written confirmation from the Nasdaq listing qualifications department saying that it has regained compliance with Nasdaq’s minimum shareholders’ equity requirements.

• The confirmation clears a key regulatory requirement for Check-Cap advances to complete its previously announced, shareholder-approved merger with MBody AI. 
• Check-Cap in September had announced that it has entered into a merger agreement, pursuant to which Check-Cap’s subsidiary Merger Sub will merge with and into MBody AI. 
• Shareholders in November had approved the merger of Check-Cap with MBody AI.

Shares of Check-Cap rallied nearly 100% on Monday after it said it has received written confirmation from the Nasdaq listing qualifications department saying that the company has regained compliance with the bourse’s rules for continued listing.

The confirmation clears a key regulatory requirement for Check-Cap advances to complete its previously announced, shareholder-approved merger with MBody AI. 

MBody AI Merger

Check-Cap in September had announced that it has entered into a merger agreement, pursuant to which Check-Cap’s subsidiary Merger Sub will merge with and into MBody AI, with MBody becoming a wholly owned subsidiary of Check-Cap. 

Check-Cap in a regulatory filing had said that the new company will change its name from “Check-Cap, Ltd.” to “MBody AI Ltd.” or a similar name approved by the Israeli Registrar of Companies. 

MBody AI is an emerging leader in embodied artificial intelligence, developing and actively deploying the MBody AI Orchestrator, a hardware-agnostic platform that delivers real-time data intelligence and AI-driven performance insights across robotic systems.

Shareholder Approval

Shareholders in November had approved the merger of Check-Cap with MBody AI. As per a regulatory filing, 98.01% of votes cast during the annual general meeting were in favor of the merger. 

Shareholders had also approved a reverse share split of the Check-Cap’s ordinary shares within a range of 1 for 14 to 1 for 100. The company said the exact ratio will be determined by further action of the company’s board of directors. 

How Did Stocktwits Users React?

Retail sentiment around MBAI trended in ‘neutral’ territory amid ‘extremely low’ message volume. 

Shares in the company have rallied more than 114% over the past 12 months.