Shuttle Pharmaceutical Holdings signed a definitive merger agreement to acquire United Dogecoin and become a Dogecoin miner.
- Shuttle Pharma will issue 8,000 shares of Series B-1 convertible preferred stock, which can convert into about 32.3 million common shares at $1.24 per share.
- The combined company will also be supported by an $11 million private investment.
- United Dogecoin plans to deploy up to 3,000 next-generation mining rigs, which could be fully operational within 60 days of closing.
Shares of Shuttle Pharmaceutical Holdings (SHPH) jumped more than 20% in pre-market trading on Friday as investors cheered a merger agreement that is expected to turn the nano-cap biotech firm into the world’s largest public Dogecoin miner.
Shuttle Pharma signed a definitive merger agreement to acquire United Dogecoin, a cryptocurrency mining company. The combined company will also be supported by an $11 million private investment tied to the transaction.
United Dogecoin plans to deploy up to 3,000 next-generation ElphaPex mining rigs, which could be fully operational within 60 days of closing. This buildout is projected to deliver up to roughly 1.5% of the global Dogecoin network capacity.
United Dogecoin also brings strategic advantages, including access to discounted mining hardware and low-cost renewable energy sources. Shuttle Pharma expects these efficiencies to allow it to mine Dogecoin at a lower cost than buying tokens on the open market.
Merger Structure
Under the deal, Shuttle Pharma will issue 8,000 shares of Series B-1 convertible preferred stock, which can convert into about 32.3 million common shares at $1.24 per share. This is a 20% upside on Thursday’s closing price.
The transaction also includes a $11 million PIPE (Private Investment in Public Equity), involving convertible preferred stock and warrants that could translate into roughly 9.7 million shares at $1.03 per share.
How Did Retail Traders React?
Retail sentiment for SHPH on Stocktwits turned ‘extremely bullish’ from ‘bullish’ a day earlier, while message volumes on the platform surged a whopping 7,000% over a 24-hour period.
One user expects the stock to surge to $40.
The stock has been under selling pressure this year, declining nearly 45%.
For updates and corrections, email newsroom[at]stocktwits[dot]com.
Read about our editorial guidelines and ethics policy
