Vallon Pharmaceuticals Inc (NASDAQ: VLON) stock price spiked 51.4% today, adding to Friday’s 72.57% rally as investor interest in the firm remained high following Friday’s regulatory filing highlighting its planned merger with GRI Inc.
The company’s stock price closed 72.6% higher on Friday after the firm filed an amended S4 registration statement detailing its merger with GRI Inc, which was first announced via a press release on December 13, 2022.
The merger is expected to be completed this quarter, and investors are excited about the tie-up of the two businesses to form a much larger and financially robust business. Unlike in December, Vallon Pharma did not issue a press release after the latest update, instead choosing to issue the update via a regulatory filing silently.
The enlarged company will trade as “GRI Bio, Inc.” on the Nasdaq Capital Market under the ticker symbol “GRI”. Investors’ optimism about the merger is warranted, given that Altium Capital agreed to invest $15 million in the combined company after closing.
GRI Bio Inc. will be flush with cash once the merger is completed. Altium Capital has committed to investing a further $10 million in the combined company once the terms and conditions outlined in the securities purchase agreement are met.
The new company will be a clinical-stage biotechnology firm focused on fundamentally changing how inflammatory diseases are treated by targeting NKT immune cells earlier in the inflammatory chain compared to the current standard of care to interrupt disease progression more effectively.
https://www.asktraders.com/analysis/vallon-pharma-vlon-stock-spiked-51-on-the-gri-merger-update/
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