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BOCA RATON - Entero Therapeutics, Inc. (NASDAQ:ENTO), whose stock has surged over 300% in the past six months and currently shows signs of being overvalued according to InvestingPro analysis, has acquired GRID AI Corp, a company specializing in AI-driven software for managing distributed energy resources, according to a press release issued Wednesday.
The transaction positions the biopharmaceutical company, currently valued at $7.94 million, in the growing AI energy-infrastructure market, with GRID AI shareholders set to own approximately 82.5% of ENTO’s fully diluted common stock, while existing ENTO shareholders will retain 17.5%.
GRID AI’s platform uses artificial intelligence and edge analytics to manage behind-the-meter assets such as EV chargers, batteries, and rooftop solar systems to balance electricity supply and demand in real time. The company has received over $50 million in investment since 2019 to develop its technology.
"This transaction is transformative for ENTO," said Jason Sawyer, Interim Chief Executive Officer of ENTO. "By combining GRID AI’s grid-edge intelligence with our public-company platform, we intend to scale solutions that help utilities and hyperscalers meet unprecedented AI-driven power demand."
The acquisition comes amid projections of significant growth in data center power demand. According to the press release, Goldman Sachs Research forecasts global data-center power demand to increase approximately 50% by 2027 and potentially 165% by 2030 compared to 2023 levels.
As part of the agreement, former GRID AI shareholders will initially designate two directors to ENTO’s board, with the right to appoint five of seven directors upon full implementation of the agreement.
ENTO plans to continue its existing operations in developing therapies for gastrointestinal diseases while operating GRID AI as a wholly owned subsidiary.
The transaction is subject to shareholder approval and ENTO may file an initial listing application for its common stock as required by NASDAQ’s change of control regulations.
In other recent news, Entero Therapeutics has announced a 1-for-3 reverse stock split, effective August 18, 2025, as part of its efforts to regain compliance with Nasdaq’s minimum bid price requirement. This decision, approved by both the board of directors and shareholders, aims to maintain the company’s listing on the Nasdaq Capital Market, which requires a minimum bid price of $1.00 per share. Additionally, Entero Therapeutics has raised approximately $3 million through private placement agreements involving pre-funded and common warrants. The company recently regained compliance with Nasdaq Listing Rule 5620(a) following its annual meeting, ensuring its shares remain listed on the Nasdaq Capital Market. Furthermore, Entero Therapeutics received an extension from Nasdaq to meet the minimum stockholders’ equity requirement by October 8, 2025. The company must adhere to specific terms of the extension to avoid potential delisting. Entero Therapeutics has acknowledged that there is no assurance of regaining compliance or maintaining its listing, despite these efforts.
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