Skip to content

Vallon Pharma (VLON) Stock Spiked 51% on the GRI Merger Update

Simon Mugo trader
Updated 13 Feb 2023

The Vallon Pharmaceuticals Inc (NASDAQ: VLON) stock price spiked 51.4% today, adding to Friday’s 72.57% rally as investor interest in the firm remained high following Friday’s regulatory filing highlighting its planned merger with GRI Inc. 


YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.


The company’s stock price closed 72.6% higher on Friday after the firm filed an amended S4 registration statement detailing its merger with GRI Inc, which was first announced via a press release on December 13, 2022. 

Top Broker Recommendation

YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY

The merger is expected to be completed this quarter, and investors are excited about the tie-up of the two businesses to form a much larger and financially robust business. Unlike in December, Vallon Pharma did not issue a press release after the latest update, instead choosing to issue the update via a regulatory filing silently. 

The enlarged company will trade as “GRI Bio, Inc.” on the Nasdaq Capital Market under the ticker symbol “GRI”. Investors’ optimism about the merger is warranted, given that Altium Capital agreed to invest $15 million in the combined company after closing. 

GRI Bio Inc. will be flush with cash once the merger is completed. Altium Capital has committed to investing a further $10 million in the combined company once the terms and conditions outlined in the securities purchase agreement are met. 

The new company will be a clinical-stage biotechnology firm focused on fundamentally changing how inflammatory diseases are treated by targeting NKT immune cells earlier in the inflammatory chain compared to the current standard of care to interrupt disease progression more effectively.

David Baker, Vallon Pharma’s CEO, commented:

“Following an extensive and thorough strategic review process, we believe merging with GRI Bio represents the best path forward for Vallon’s shareholders. GRI Bio provides an exciting opportunity for value creation by advancing a potentially deep pipeline leveraging its innovative NKT regulator technology. Our board and management believe the combined company will be well positioned with the potential to address shortcomings that exist with current therapeutic treatments targeting inflammation and fibrosis across a number of high-value indications.”

*This is not investment advice. 

The Vallon Pharma (VLON) stock price

The Vallon Pharma (VLON) stock price surged 51.35% to trade at $0.7000, from Friday’s closing price of $0.4625. 


YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.


Simon has over six years of professional trading experience across FX, commodities and equities. He has a strong passion for financial markets and is particularly focused on price action trading