In a development that has taken the market by surprise today, lightly traded APOP stock soared in today’s trading session after important news emerged about Cellect Biotechnology Ltd (NASDAQ:APOP).
Investors Cheer the News
Cellect has signed a binding letter of intent for exclusive rights to some of Canndoc Ltd’s products. Subject to certain definitive agreements, Cellect Biotechnology is going to get exclusive rights to use Canndoc products aimed at reducing the usage of opioids.
Over the past few years, the opioid crisis has become one of the biggest healthcare issues in the United States. According to the terms of the agreement between the two companies, Canndoc is going to supply Cellect with six tons of GMP-grade medical cannabis over the course of the next five years.
The total value of the cannabis stands at $18 million. It has also been revealed that Cellect Biotechnology will have the option to extend the contract for another five years and stretch the collaboration up until 2029.
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On the back of this development, APOP stock has soared by 50% to $3.11 and emerged as one of the stocks to watch today.
Shai Yarkoni, the Chief Executive Officer of Cellect, believes that the deal is going to create a lot of value all around. He said, “We believe this alliance will create immense value for the patient community, the company, and its shareholders.”
Opioid painkillers are now a major problem in the United States, and Canndoc has 12 years of experience in providing painkilling solutions to patients through medical cannabis. The two companies have also signed a non-binding letter of intent with regards to a merger. Cellect Biotechnology has also decided to issue as many as 1,023,720 ADRs to Canndoc, which will make up 19% of the share capital.
APOP stock has lost about 50% over the past year.
Featured image: DepositPhotos © wabeno
