PainReform stock soars on DeepSolar acquisition

Investing.com -- Shares of PainReform (NASDAQ:PRFX) surged 75% in premarket trading following the announcement that the company has executed a definitive agreement to acquire DeepSolar, a solar analytics platform owned by BladeRanger Ltd (TASE:BLRN). This strategic move represents a significant shift for the clinical-stage pharmaceutical company, traditionally focused on pain treatment technologies.

The acquisition, expected to close by the end of February 2025, hinges on customary closing conditions. DeepSolar, known for its AI-driven optimization of solar energy assets, could provide PainReform with a competitive edge in the growing solar energy management sector. The platform is designed to integrate with SCADA systems, offering real-time monitoring and performance analytics, potentially reducing operational costs by up to 30% and maximizing energy production.

DeepSolar’s market presence spans both B2B and B2C sectors, targeting large-scale solar operators and individual homeowners. With the solar energy market expanding rapidly, the SolarPower Europe report forecasts a 25.32% annual growth rate through 2026. PainReform’s acquisition of DeepSolar’s advanced AI technology is seen as a move to tap into this burgeoning market.

The terms of the agreement include PainReform acquiring all rights, titles, and interests in DeepSolar’s assets, including intellectual property and customer relations. In exchange, BladeRanger will receive a combination of ordinary shares and various warrants in PainReform.

Ehud Geller, Chairman of PainReform, commented on the acquisition, "We are incredibly excited about the unique opportunity this acquisition presents. While at first glance, a pharmaceutical company acquiring a solar analytics business may seem unconventional, the rationale is both compelling and strategic."

Despite the pivot towards solar analytics, PainReform reassures stakeholders of its continued commitment to its core pharmaceutical business. The company’s management and Board of Directors will remain intact, focusing on leveraging the strategic and financial benefits of the DeepSolar acquisition.

The transaction details have been disclosed in PainReform’s Form 6-K filed with the Securities and Exchange Commission. As the market reacts to this news, investors are keenly observing PainReform’s foray into the high-margin solar sector while maintaining its pharmaceutical endeavors.

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