Check-Cap Stock Skyrockets Over 190% on MBody AI Merger Deal
The medical technology firm will pivot to the burgeoning embodied AI sector, creating a new publicly traded entity focused on the autonomous workforce.
Shares of Check-Cap (NASDAQ: CHEK) surged more than 190% in a dramatic market reaction to the announcement of its definitive merger agreement with MBody AI, a private company specializing in artificial intelligence. The deal signals a significant strategic pivot for Check-Cap, moving it from medical device development into the rapidly expanding field of embodied AI for the autonomous workforce.
The will create a new, publicly traded entity named MBody AI Ltd. Upon closing, current MBody AI equity holders will own approximately 90% of the combined company, with Check-Cap shareholders retaining the remaining 10%. The transaction has been approved by both boards but awaits the crucial approval of Check-Cap shareholders, who are scheduled to vote at a meeting on October 17, 2025.
MBody AI develops what it describes as the “brains of autonomy,” creating advanced AI systems that enable real-time learning and adaptation for intelligent machines. While its initial market focus has been the hospitality sector, the company plans to expand its reach into warehousing, office management, and healthcare. This move positions the new entity to capitalize on the embodied AI market, a sector that could grow into a $40 trillion industry by 2050.
The investor response was immediate and overwhelmingly positive. Following the news, Check-Cap's stock was highlighted as a top gainer, with one report noting a . This powerful rally reflects strong market enthusiasm for the company's new direction and its entry into the high-growth AI space.
Beyond the strategic pivot, the merger is also expected to resolve a critical compliance issue for Check-Cap. The company had previously faced a Nasdaq notice regarding its failure to meet the minimum stockholders' equity requirement. The merger and its associated financing are anticipated to rectify this situation and ensure the combined company remains in compliance with Nasdaq listing standards. The deal provides Check-Cap with a clear path forward, reinventing itself as a key player in the future of the autonomous workforce.