MBody AI and Check-Cap Ink Definitive Merger Deal to Target $40 Trillion Embodied AI Market
DENVER, Colo., Sep 15, 2025 (247marketnews.com)- Check-Cap (NASDAQ:CHEK) and private AI innovator MBody AI signed a definitive merger agreement that could mark a major pivot into the fast-emerging embodied AI sector. Pending shareholder approval, the merger will result in a combined company, MBody AI, focused on deploying embodied artificial intelligence across industries, including hospitality, warehousing, and healthcare.
MBody AI, which has already established a foothold in hospitality tech, is developing a proprietary AI stack known as the “brains of autonomy”, a system designed to drive intelligent machines that learn and adapt in real-time. The company aims to simplify how industries adopt embodied AI, which Morgan Stanley recently projected could become a $40 trillion market by 2050.
Following the merger, MBody AI equityholders will control 90% of the combined company, with Check-Cap shareholders retaining the remaining 10%. Check-Cap’s existing intellectual property, including patents and medical device technology, will remain part of the combined entity. The companies also noted plans to pursue financing through a private placement to strengthen the capital base post-merger.
The move comes after Check-Cap spent over a year reviewing strategic alternatives. The company believes this merger introduces a “revenue-generating partner” in a high-growth sector while maintaining continuity for its legacy R&D programs. Importantly, the proposed merger also positions the new entity to leverage Check-Cap’s Ghost Kitchen franchise rights in New Jersey, which could align with MBody AI’s autonomous service platform.
The merger is expected to be voted on at Check-Cap’s Annual General Meeting on October 17, 2025. If approved, the previously announced business combination with Apollo Technology Capital Corporation will be mutually terminated, though Check-Cap may remain open to future collaboration with Apollo.
Separately, Check-Cap has until October 20, 2025 to submit a plan to regain compliance with Nasdaq Listing Rule 5550(b)(1) regarding minimum stockholders’ equity. The company has indicated that the proposed merger and related financing could help address this issue, subject to Nasdaq’s review and approval.
With board approval already secured, the merger sets the stage for a public company purpose-built for the next wave of automation, at the intersection of artificial intelligence, robotics, and scalable workforce transformation.
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