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BOCA RATON - Entero Therapeutics, Inc. (NASDAQ:ENTO), whose stock has surged over 300% in the past six months according to InvestingPro data, has acquired GRID AI Corp, a company that develops AI-driven software for managing distributed energy resources, according to a press release statement issued Wednesday.
The transaction positions the biopharmaceutical company in the growing market of AI energy infrastructure as data centers face increasing power demands. Under the agreement, ENTO acquired 100% of GRID AI, with former GRID AI shareholders set to own approximately 82.5% of ENTO’s fully diluted common stock, pending shareholder approval. InvestingPro analysis indicates ENTO is trading near its Fair Value, with a current market capitalization of $6.77 million.
GRID AI’s technology platform enables utilities, retailers, and large power users to manage electricity loads and distributed energy resources through AI and edge analytics. The company has received over $50 million in investment since 2019 to develop its Dynamic Load Shaping and Aggregation Management Platform.
"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." Financial data from InvestingPro shows ENTO maintains a healthy current ratio of 2.81, indicating strong short-term liquidity, though the company is not yet profitable.
The acquisition comes as data center power consumption is projected to increase significantly due to AI workloads. According to the press release, Goldman Sachs Research forecasts global data-center power demand to rise approximately 50% by 2027 compared to 2023 levels. Unlock 12 additional InvestingPro Tips and comprehensive financial analysis for ENTO with an InvestingPro subscription.
As part of the transaction, former GRID AI shareholders will initially designate two directors to ENTO’s board, eventually appointing five of seven directors upon full implementation of the agreement.
ENTO plans to continue its existing operations in gastrointestinal disease therapies while operating GRID AI as a wholly owned subsidiary.
In other recent news, Entero Therapeutics has acquired GRID AI Corp, a company specializing in AI-driven software for managing distributed energy resources. This acquisition positions Entero Therapeutics in the AI energy-infrastructure market, with GRID AI shareholders set to own approximately 82.5% of the company’s fully diluted common stock. Additionally, Entero Therapeutics announced plans for a 1-for-3 reverse stock split, effective August 18, 2025, as part of efforts to regain compliance with Nasdaq’s minimum bid price requirement. This move was approved by the board of directors and shareholders to maintain the company’s listing on the Nasdaq Capital Market.
The company also secured approximately $3 million through private placement agreements with institutional investors, involving pre-funded warrants and common warrants. In another development, Entero Therapeutics announced it has regained compliance with Nasdaq Listing Rule 5620(a) after successfully holding its annual meeting on June 30. The company received confirmation from Nasdaq’s Listing Qualifications department, ensuring its continued listing on the Nasdaq Capital Market. These recent developments reflect Entero Therapeutics’ strategic moves to strengthen its financial position and market presence.
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