GlucoTrack Inc. (NASDAQ:GCTK) shares surged 15.98% to $0.58 in after-hours trading on Thursday, reversing a 5.48% decline earlier in the day. The stock closed at $0.50 before the late-session rally, according to Benzinga Pro data.
Merger Completion
The increase follows the announcement of GlucoTrack's strategic business combination with Lokahi Therapeutics, a California-based biopharmaceutical platform. The merger, completed on Tuesday, positions Lōkahi as the operating and controlling entity of the newly formed company. Once stockholder approvals are secured and Nasdaq listing requirements are met, preferred stock is expected to convert into common stock, resulting in Lokahi securityholders owning approximately 90% of the combined entity on a fully diluted basis.
Leadership Changes
As part of the merger, Erik Emerson has been appointed CEO of the combined company, while Paul Goode will serve as Chief Technical Officer and CEO of GlucoTrack’s continuous blood glucose monitoring subsidiary, which will operate independently. Emerson stated,
This transaction establishes a capital-efficient, publicly listed platform designed to systematically identify, acquire, and advance differentiated healthcare assets.
The company is also planning a private placement to support its near-term execution.
GlucoTrack has a market capitalization of about $3.12 million and has traded between a 52-week high of $14.14 and a low of $0.29. The stock has seen a 91.55% decline over the past year but has gained 31.58% in the last month.
The merger announcement is likely to boost investor sentiment in the small-cap healthcare sector, particularly for stocks involved in strategic consolidations. Investors may focus on GCTK's potential for recovery and growth following the merger.
Watch for the upcoming stockholder approvals and Nasdaq listing requirements, which will be crucial for the merger's full execution.