PHOE Stock More Than Doubles On Strategic Pivot Into Pharma Industry With Scilex Deal

• Under the terms, ACEA Therapeutics will sell 100% of the issued and outstanding equity interests in ACEA Pharma to Phoenix.
• In exchange, Phoenix will issue 100 million newly issued ordinary shares valued at $10.00 per share, for a total transaction value of $1 billion.
• The deal is expected to close by the end of the second quarter of 2026.

Shares of Phoenix Asia Holdings (PHOE) surged 169% on Tuesday after the company announced a $1 billion deal that will transform it into a pharmaceutical-industry holding company.

Scilex (SCLX), which makes non-opioid pain management products, said on Tuesday that its indirect subsidiary ACEA Therapeutics, Inc., and wholly owned unit ACEA Pharma, Inc., have entered into a definitive stock acquisition agreement with Hong Kong-based Phoenix Asia.

Deal Terms

Under the terms, ACEA Therapeutics will sell 100% of the issued and outstanding equity interests in ACEA Pharma to Phoenix. In exchange, Phoenix will issue 100 million newly issued ordinary shares valued at $10.00 per share, for a total transaction value of $1 billion.

Upon closing, Phoenix will be renamed ACEA Pharma, Inc., and its common stock is expected to continue trading on The Nasdaq Stock Market. ACEA Therapeutics is projected to own approximately 82% of the post-deal entity.

The boards of all three companies have unanimously approved the transaction. The deal is expected to close by the end of the second quarter of 2026, subject to customary closing conditions, including regulatory and stock-exchange approvals.

Phoenix is currently primarily engaged in construction and substructure works in Hong Kong. Following the transaction, it will transform into a pharmaceutical-industry holding company.

How Did Retail Traders React?

On Stocktwits, retail sentiment around SCLX stayed within the ‘extremely bullish’ territory over the past 24 hours, while message volume remained at ‘high’ levels.

Meanwhile, sentiment around PHOE jumped from ‘bullish’ to ‘extremely bullish’ levels, while retail chatter rose from ‘low’ to ‘extremely high’ levels.

A Stocktwits user applauded the deal, terming it “only the beginning.”

https://www.stocktwits.com/BioCEOsSukk/message/652323584
  
While PHOE stock has rallied more than 1700% over the past 12 months, SCLX shares have nearly doubled. 

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