From biotech to orbit: Rocket One's AI and space re-brand sends shares flying
· CNA · JoinRead a summary of this article on FAST.
Get bite-sized news via a new
cards interface. Give it a try.
Click here to return to FAST Tap here to return to FAST
FAST
May 28 : Shares of biotech-turned-AI company Rocket One jumped around 60 per cent in premarket trading on Thursday, as the stock began trading under its new name and ticker for the first time.
Formerly called Hoth Therapeutics, the company had announced earlier this month that it would re-brand itself to Rocket One Inc and restructure its business to pursue opportunities in AI infrastructure, semiconductor technologies and AI computing.
Hoth Therapeutics had been developing an experimental skin treatment drug, but the company was yet to report any revenue from its operations and reported a loss of 17 cents per share in the March quarter. It aims to continue its biotech business under a separate subsidiary.
In a statement on Wednesday, the company said it will focus on developing space-based AI systems for satellites.
CNA Games
Guess Word
Crack the word, one row at a time
Buzzword
Create words using the given letters
Mini Sudoku
Tiny puzzle, mighty brain teaser
Mini Crossword
Small grid, big challenge
Word Search
Spot as many words as you can
Show More
Show Less
Space exploration has garnered huge investor interest after Elon Musk's rocket company SpaceX unveiled its filing for an initial public offering (IPO) last week, which saw smaller space stocks including Rocket Lab and Intuitive Machines rally.
While the hype for the space economy is relatively new, AI has been a dominant theme on Wall Street for some time now. Last month, footwear maker Allbirds and social media firm Myseum announced a sudden re-brand with a new AI-related identity, which saw their shares jump sharply in a sign of investor mania.
Several small companies whose legacy businesses have no connection to AI have announced a pivot, underscoring how the sector's status as a magnet for investment capital can also provide firms a chance to raise funds.
Rocket One had a market capitalization of just over $26 million as of last close. Its shares were up 58.1 per cent to $2.15 on Thursday.
Newsletter
Week in Review
Subscribe to our Chief Editor’s Week in Review
Our chief editor shares analysis and picks of the week's biggest news every Saturday.
Sign up for our newsletters
Get our pick of top stories and thought-provoking articles in your inbox
Get the CNA app
Stay updated with notifications for breaking news and our best stories
Get WhatsApp alerts
Join our channel for the top reads for the day on your preferred chat app