Phoenix Asia Holdings Ltd. (NASDAQ:PHOE) shares surged 47.43% to $28.10 in after-hours trading on Wednesday after it announced a $1 billion stock acquisition agreement to acquire clinical-stage pharmaceutical firm ACEA Pharma Inc., marking a dramatic pivot from its construction roots into oncology and autoimmune drug development.
Inside The $1 Billion Stock Acquisition
Phoenix will issue 100 million newly-issued ordinary shares, valued at $1 billion, to ACEA Therapeutics Inc., the Cayman Islands-based transferor holding 100% of ACEA Pharma’s issued and outstanding equity.
The deal announced on Monday requires Hart-Scott-Rodino antitrust clearance, which requires parties to certain mergers or acquisitions to submit premerger notifications to the Federal Trade Commission and the Department of Justice. It also requires Nasdaq review, including a possible reverse-merger or change-of-control determination, with the closing expected in the second quarter.
$20M Convertible Note
Alongside the deal, the Hong Kong-based substructure works company also issued a $20 million interest-free convertible promissory note to Phoenix Prosperity Investment Limited, its controlling stockholder, for advisory and deal-support services.
Trading Metrics, Technical Analysis
Phoenix Asia Holdings has a market capitalization of $411.70 million, with a 52-week high of $133.12 and a low of $2.73.
The small-cap stock has a Relative Strength Index (RSI) of 49.89.
Over the past 12 months, PHOE has gained 557.24%.
Currently, the stock is positioned at about 12.5% of its 52-week range.
Price Action: PHOE closed the regular session down 33.36% at $19.06, according to Benzinga Pro data.
Benzinga’s Edge Stock Rankings indicate that PHOE stock is experiencing a positive price trend across all time frames.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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