Meme Stock Investors Turn to Brooklyn ImmunoTherapeutics
(Bloomberg) -- In the twitchy world of meme stocks, Brooklyn ImmunoTherapeutics Inc. is in and Zomedica Corp. may be on its way out.
Brooklyn ImmunoTherapeutics initially surged as much as 83% on Tuesday before paring back to a 30% gain as more than 44 million shares changed hands during the trading day. If you’ve never heard of the company, it’s because the biotech stock only recently came to the public markets through a reverse merger with NTN Buzztime Inc., a seller of trivia apps.
While Brooklyn ImmunoTherapeutics rallied, Zomedica started off the day tumbling before shaking off a three-day slide, showing the pitfalls of following day traders into risky biotech stocks. Zomedica sank as much as 17% before clawing back its losses to a roughly 5% gain Tuesday as StockTwits lit up with commentary and more than 121 million shares changed hands. The animal health company -- which is working on a device to detect thyroid disease in pets -- found fame among retail traders after a mention from Tiger King’s Carole Baskin. Zomedica fell 19% over the previous three days though it remains up close to 500% so far in 2021.
Brooklyn ImmunoTherapeutics also has a tie to the cryptocurrency realm in the form of a publicly traded activist investor that dabbles in bitcoin mining, Ault Global Holdings Inc. The Las Vegas-located holding company snapped up a shares in Brooklyn ImmunoTherapeutics ahead of the completion of the reverse merger in January, but has since been shedding its stake, according to filings.
For the New York-based company, nothing seems to dampen investor enthusiasm, certainly not a change in management. The company said on Tuesday a professor from the University of California at Irvine, Howard Federoff, would take over as chief executive on April 16. Federoff takes the reins from Ron Guido, who headed Brooklyn ImmunoTherapeutics for a little over a year, according to his LinkedIn profile.
Social media crowed instead about the board members that filed initial reports with the U.S. Securities and Exchange Commission on their stakes. Among the filers was one of the company’s largest holders, director Nicholas Singer -- a former Goldman Sachs analyst now investor who also dabbles in blank check companies -- Singer also holds stakes via Purchase Capital LLC and Premier Trust, according to company filings.
Others on Twitter took a liking to the stock, including Timothy Sykes, a stock-picking entrepreneur who sells subscriptions to his alerts. Sykes highlighted Brooklyn ImmunoTherapeutics as among “hot stocks to watch” before markets opened on Tuesday.
The biotech has one drug in development listed on its website. IRX-2 is in testing for head and neck cancers with mid-stage study results expected to report in the current quarter.
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