Check-Cap stock soars on merger agreement with MBody AI

Investing.com -- Check-Cap Ltd. (NASDAQ:CHEK) stock soared 360% in premarket trading Monday after the company announced it has entered into a definitive merger agreement with MBody AI.

The merger will create a combined company focused on embodied AI for the autonomous workforce, while Check-Cap’s legacy business will continue its research and development activities as part of the combined entity. Under the terms of the agreement, current MBody AI equityholders will own 90% of the combined company, with Check-Cap shareholders retaining 10%.

MBody AI develops what it calls the "brains of autonomy," a proprietary AI stack that powers intelligent systems capable of learning and adapting in real time. The company initially focuses on the hospitality sector but plans to expand into warehousing, office management, and healthcare.

"We are excited to enter into a definitive merger agreement with MBody AI," said David Lontini, Chairman of the Board of Directors and Interim CEO of Check-Cap. "It has been a long road for Check-Cap since announcing a review of strategic alternatives back in 2023. We believe we have found the right revenue-generating merger partner that will allow us to enter into a high-growth industry while continuing to focus on our legacy business."

The combined company will be renamed "MBody AI Ltd." and will retain Check-Cap’s legacy assets, consisting primarily of patents and proprietary medical equipment. The merger is subject to approval by Check-Cap shareholders at the Annual General Meeting scheduled for October 17, 2025.

The companies also plan to secure financing through a private placement on mutually acceptable terms. The merger is expected to create potential synergies with Check-Cap’s Ghost Kitchen franchise rights in New Jersey.

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