4 days ago
Why Is MEI Pharma Stock (MEIP) Up 85% Today?
MEI Pharma (MEIP) stock surged on Friday after the pharmaceutical company announced a private investment in public equity (PIPE) for 29,239,767 shares of MEIP stock. The company will sell these shares for $3.42 each, resulting in gross proceeds of roughly $100 million. The company will use these funds to purchase Litecoin (LTC), creating a crypto reserve of the digital tokens.
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In addition to this, Litecoin creator Charlie Lee will join the MEI Pharma Board of Directors. It will also appoint digital asset market maker GSR as the company's digital asset and treasury management advisor. Lee and GSR are lead investors in the PIPE.
Frederick W. Driscoll, Chairman of the Board at MEI Pharma, said, 'MEI is pleased to pioneer this innovative public company treasury strategy with GSR and Charlie Lee, the first to our knowledge in the biotech sector.'
MEI Pharma Stock Movement Today
MEIP stock was up 86.22% in pre-market trading on Friday, extending a 16.58% rally yesterday. The stock has also increased 82.93% year to date and 57.34% over the past 12 months. Today's movement came with heavy trading, as some 13 million shares changed hands, compared to a three-month daily average of about 26,000 shares.
Is MEI Pharma Stock a Buy, Sell, or Hold?
Turning to Wall Street, coverage of MEI Pharma is lacking. However, TipRanks' AI analyst Spark has it covered. Spark rates MEI stock a Neutral (41) with no price target. It cites 'significant financial performance challenges and poor valuation metrics' as reasons for this stance.
