Check-Cap Ltd. (NASDAQ:CHEK) shares jumped 360% in premarket trading on Monday after the company revealed it had entered a definitive merger agreement with MBody AI.
The deal will establish a combined entity focused on embodied AI for the autonomous workforce, while Check-Cap’s existing operations will continue their R&D activities within the new organization. Under the terms of the agreement, current MBody AI equityholders will hold 90% of the combined company, and Check-Cap shareholders will retain 10%.
MBody AI develops what it calls the “brains of autonomy,” a proprietary AI stack that powers intelligent systems capable of real-time learning and adaptation. Initially, the company is concentrating on the hospitality sector, but it intends 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.”
Following the merger, the new company will be called “MBody AI Ltd.” and will retain Check-Cap’s legacy assets, primarily its patents and proprietary medical equipment. Shareholder approval will be required at the Annual General Meeting scheduled for October 17, 2025.
The companies also aim to secure financing via a private placement on mutually agreeable terms. The merger is expected to generate synergies, including leveraging Check-Cap’s Ghost Kitchen franchise rights in New Jersey.
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