The surge observed in Check-Cap Ltd. (NASDAQ: CHEK) shares on the US stock exchange denotes a noteworthy escalation of 52.85%, culminating at $2.95 per share as of the last check. Check-Cap concluded the previous session's trading at $1.97 after experiencing a decline of 3.68%. This significant increase in CHEK's stock valuation during the pre-market session is attributed to the announcement of a business combination move made by the company today.

Check-Cap (CHEK) has declared its entry into a definitive Business Combination Agreement with Nobul AI Corp. Per the agreement, Nobul's shareholders will emerge as the principal holders of the merged entity. If finalized, this business combination will establish a publicly traded company headquartered in Toronto, Canada, with a focus on an AI-driven fintech marketplace, as well as the acquisition and AI-enablement of conventional companies to deliver enhanced returns for its shareholders.

In conjunction with the transaction, the merged entity will seek listing on the NASDAQ and TSX, subject to meeting all listing criteria and obtaining approval from the NASDAQ and TSX. The leadership team of Nobul will assume roles within the combined entity, with Regan McGee, Nobul's Founder, Chief Executive Officer, and Chairman, at the helm.

Following a thorough review of strategic options, Check-Cap's Board of Directors has determined that the proposed transaction with Nobul aligns with the best interests of shareholders. CHEK intends to convene a special shareholders' meeting in the forthcoming months to vote on this business combination. Nobul has a proven track record of closing M&A and PE deals, and this merger will provide the business the ability to pursue more of these advantageous deals as a publicly traded firm.

The proposed merger was approved by the boards of both companies. However, in accordance with the rules of the Israeli Companies Law, the business combination is subject to the approval of Check-Cap shareholders at a special meeting, as well as the fulfillment or waiver of other usual criteria, such as regulatory and exchange clearances. It is expected that the special shareholders' meeting will happen in the upcoming months.