Why Stellar Biotech Shares Are Up 70%

Stellar Biotech SBOT shares were up more than 70 percent Friday morning following an 8-K filing late Thursday disclosing its board and Edesa Biotech approved a transaction that was originally disclosed on March 8.

During the fiscal second quarter, Stellar Biotech entered into a share exchange agreement with Edesa Biotech, a Canadian biopharmaceutical company. Under the terms of the agreement, Edesa Biotech shareholders agreed to exchange their shares of Edesa for newly-issued common shares of Stellar.

An 8-K filing is a form used to notify investors in U.S. public companies of specified events that may be important to shareholders.

There has been some extreme volatility in momentum stocks this week. Obalon Therapeutics OBLN shares rose triggered by a questionable rumor, while Soliton Inc SOLY shares have more than tripled since Tuesday.

Stellar Biotech traded around $2.05 per share Friday morning, up 70.8 percent.