Check-Cap shares fall 12.83% after-hours as merger with MBody AI and liquidity risks spook investors.

Check-Cap Ltd. (CHEK) fell 12.83% in after-hours trading following its merger with MBody AI and the subsequent ticker change to MBAI, reflecting a strategic shift to embodied AI. The merger, approved by 98.01% of shareholders, positions the combined entity as a provider of AI-driven automation platforms for industries like healthcare and logistics. However, the sharp decline suggests investor skepticism, potentially driven by the company’s weak liquidity—its current ratio of 0.15 indicates short-term obligations exceed liquid assets—and concerns over the viability of its pivot to AI. While the merger aligns with growing demand for automation solutions, the stock’s after-hours drop underscores risks related to financial stability and execution uncertainty in the high-risk AI sector.