Will the Momentum Continue? Jaguar Health Inc (NASDAQ:JAGX) Is In News

Jaguar Health Inc (NASDAQ:JAGX) stock continues to move higher on Tuesday after a 25% rally in the past week.

Jaguar Health & Dragon SPAC Announce Initial Funding of US$10.8 Million into Dragon SPAC

• announced the initial funding of the private financing of Dragon SPAC, which has named as its target Napo EU S.p.A. (“Napo EU”). Dragon SPAC and Napo Pharmaceuticals, Inc. (“Napo Pharma”), Jaguar’s wholly-owned U.S. subsidiary, have entered into an agreement, pursuant to which Dragon SPAC will issue units (“Units”) to Napo Pharma in a private placement for cash consideration of approximately US$10.8 million, with proceeds of such financing to be used in part for Dragon SPAC’s contemplated business combination (the “Merger”) with Napo EU.
• Each Unit consists of one ordinary share of Dragon SPAC and one warrant. Each warrant will entitle the holder thereof to purchase one ordinary share at an exercise price of EUR 10 per ordinary share at any time prior to the earlier of (i) the 10-year anniversary of the consummation of the Merger and (ii) the five-year anniversary of the listing of the combined Napo EU/Dragon SPAC entity resulting from the Merger (the “Combined Company”) on a public exchange. The private financing is expected to close around the end of Q2 2021, subject to certain conditions including the concurrent closing of the Merger and completion of customary items.
• Proceeds from the private placement will be used exclusively for the purposes of funding the Merger and the activities of the Combined Company.
• As announced today, Napo EU, the wholly-owned Italian subsidiary of Napo Pharma, has refined its business plan, and terms of its contemplated license from Napo Pharma, to focus initially on conditional approval for an important orphan indication, short bowel syndrome (SBS), a condition leading to intestinal failure requiring nutritional support for survival, and a global market expected to reach US$4.6 billon by 2027, expanding at a CAGR of 26% from 2020 to 20271, rather than the previously announced indication of prophylaxis and/or symptomatic relief of inflammatory diarrhea, including COVID-associated diarrhea.

Market Action

As of 10:11, JAGX is trading higher by 3.435 trade at $1.655. So far more than 3.90 million shares have exchanged hands, compared to its average volume of 10.43 million shares.