Check-Cap shares fall 12.90% intraday as merger with MBody AI and reverse split raise market concerns.

Check-Cap Ltd. (CHEK) fell 12.90% intraday following shareholder approval of a merger with MBody AI Corp. The 98.01% vote in favor of the merger, coupled with a 97.64% approval of a 1-for-14 to 1-for-100 reverse share split and a name change to "MBody AI Ltd.," signaled a strategic shift to AI. However, the reverse split—often viewed as a sign of financial restructuring—likely triggered investor concern over liquidity and valuation, outweighing optimism from the merger. The stock’s sharp decline suggests market skepticism about the merger’s terms or the company’s ability to execute its new AI-focused strategy effectively.