📊 Biotech Pops, Cannabis Drops, and a Nasdaq Delisting Shock

Happy Monday Investors,

It was a week of whiplash. Spero Therapeutics $SPRO ( ▲ 2.72% ) surged after halting its Phase 3 trial early, this time, because the treatment worked.

On the other end of the spectrum, Canopy Growth’s $CGC ( ▼ 3.88% ) legal troubles sparked a selloff, while $NWTN ( ▲ 19.32% ) took a hit after a Nasdaq delisting notice.

Toss in Basel Medical’s volume explosion and Plug Power’s dip, and the market was anything but boring.

Here's what you missed. 👇️ 

Matthias Schneider
Editor at Analytica Investor

↑ ↓ 1-day change
Market data: Friday’s market close

Last week small-cap markets saw a slight downturn, with the Russell 2000 and S&P/TSX Venture Composite Index both shrinking by 0.4% and the NASDAQ Composite dropping by 0.3%. While indexes across the board showed a retreat, possibly due to ongoing tariff and trade instability, the small retreat in the small-cap space suggests that investors may be "Getting Used to Volatility" as Schwab Network suggests.

Though tariff concerns continue to stir the pot, measures like the Thomson Reuters/CoreCommodity CRB Total Return Index and the S&P GSCI Index indicated a slow bleed in commodity-focused portfolios, dipping by 0.1% and 0.6% respectively. Expert voices propose that tariff outcomes may already be priced into the markets.

On the industry front, the healthcare sector is taking center stage as U.S. regulations are under review, indicating potential implications for small-cap companies within this realm.

Technological innovation is boosting stocks amid AI optimism and tariff relief. Furthermore, Morgan Stanley's Chris Harvey believes the equities can return double digits in the second half of this year, suggesting potential growth opportunities for the small-cap stocks.

It's important to track ongoing developments, particularly shifts in the labor market and geopolitical concerns that could continue to influence small-cap trends.

📈 Biggest Gainer 

• Spero Therapeutics, Inc. ($SPRO NASDAQ) - 17%:
  Market Cap: 139,776,500
  
  This clinical-stage biopharmaceutical firm develops and commercializes treatments for multi-drug resistant bacterial infections and rare diseases in the United States.
  
  The positive results of the PIVOT-PO Phase 3 study for Tebipenem HBr, which was halted early due to its efficacy as reviewed by an independent data monitoring committee, directly spurred a 17% boost in the stock's value. (1)

📉 Biggest Losers

• Webull Corporation Incentive Warrant ($BULLZ NASDAQ) - -31%: Market Cap: 519,245,458
  
  A digital investment platform offering trading services, wealth management, market data, user community, and investor education.

• Canopy Growth Corporation ($CGC NASDAQ) - -23%: 
  Market Cap: 237,706,920
  
  Engages in the production, distribution, and sale of cannabis and hemp-based products for recreational and medical use primarily in Canada, the US, and Germany.
  
  The recent 23% decrease in stock price was significantly influenced by a multitude of PR releases regarding a class action lawsuit against the company for alleged securities fraud, creating a negative sentiment among investors and potential litigants. (1, 2, 3,)

• NWTN Inc. ($NWTN NASDAQ) - -19%: 
  Market Cap: 447,065,532
  
  Specializes in green mobility technology emphasizing AI, autonomous driving, and personalized experiences, with a focus on tech-savvy consumers and businesses.
  
  The recent 19% decline in stock price is a direct result of the PR release regarding a Nasdaq staff delisting determination due to non-compliance with listing rule 5250(c)(1). (1)

• Akso Health Group ($AHG NASDAQ) - -17%:
  Market Cap: 115,954,038
  
  Operates a social e-commerce mobile platform in China providing a wide array of products and IT support services.

• Wellgistics Health, Inc. ($WGRX NASDAQ) - -14%: 
  Market Cap: 144,439,613
  
  A pharmaceutical products wholesaler and distributor providing logistics services and operating a prescription transfer platform for independent pharmacies.
  
  The recent 14% decline in the stock price was influenced by the preliminary inclusion of the company in the Russell 2000 and 3000 Indexes, coupled with strategic executive and board appointments aimed at scaling the company and enhancing shareholder value. (1, 2)

🚀 Biggest Movers

• Basel Medical Group Ltd Ordinary Shares ($BMGL NASDAQ) - 168,777,644 shares traded with an average volume of 957,259 (485%):
  Market Cap: 114,217,664
  
  This Singapore-based healthcare company, incorporated in 2023, offers services in medical specialties, supplies, technology, and pharmaceuticals.
  
  The stock's recent price changes are a direct result of the company's PR releases reaffirming its robust financial position despite prevailing market volatility. (1)

• Plug Power Inc. ($PLUG NASDAQ) - 145,939,202 shares traded with an average volume of 101,015,095 (-5%):
  Market Cap: 951,850,718
  
  Delivers clean hydrogen and zero-emissions fuel cell solutions for various applications, building an end-to-end green hydrogen ecosystem globally.

• Opendoor Technologies Inc. ($OPEN NASDAQ) - 68,695,443 shares traded with an average volume of 58,568,980 (-5%): 
  Market Cap: 475,386,623
  
  This is a US-based company that operates a digital platform for buying and selling residential real estate and provides related services.
  
  The unveiling of 'The Big Bad Wolf: The Wolf's Revenge' at Busch Gardens Williamsburg instigated heightened trading activity, resulting in a 5% decrease in the average volume of shares traded. (1)

• LiveWire Group, Inc. ($LVWR NYSE) - 63,002,387 shares traded with an average volume of 2,572,620 (57%): 
  Market Cap: 916,047,000
  
  This firm manufactures electric motorcycles globally, and collaborates with Harley-Davidson and KYMCO Group, operating predominately under the LiveWire brand.

• Eos Energy Enterprises, Inc. ($EOSE NASDAQ) - 58,749,530 shares traded with an average volume of 7,069,795 (-8%): 
  Market Cap: 946,778,560
  
  Designs, manufactures, and deploys battery storage solutions for various markets, with a flagship product designed for the grid-scale energy storage market.
  
  The recent investigation for potential securities fraud violations, coupled with the pricing of common stock offering and the upsize of a $225,000,000 convertible senior notes offering, directly influenced the decrease in stock trading volume. (1, 2, 3, 4, 5)

🏦 Recent & Relevant IPOs

A wave of small-cap IPOs highlights a trend toward defense and acquisition corporations, with Kochav Defense Acquisition Corp. ($KCHVU) boasting the highest market cap at $220,000,000.

• ChampionsGate Acquisition Corporation ($CHPGU) on NASDAQ (2025-05-28). Market Cap: $65,000,000

• Kochav Defense Acquisition Corp. ($KCHVU) on NASDAQ (2025-05-28). Market Cap: $220,000,000

• JENA ACQUISITION Corp II ($JENAU) on NYSE (2025-05-29). Market Cap: $200,000,000

• Wintergreen Acquisition Corp. ($WTGUU) on NASDAQ (2025-05-29). Market Cap: $50,000,000

• Fuxing China Group Limited ($FFFZ) on NASDAQ (2025-05-29). Market Cap: $10,350,000

• Pitanium Limited ($PTNM) on NASDAQ (2025-05-30). Market Cap: $10,062,500

Post Of The Day

💵 Recent Earnings

Reporting 2025-05-30:

Laurentian Bank of Canada $LRCDF - Provides various financial services in Canada and the U.S. through personal banking, commercial banking, and capital markets.

• Revenue: 175,736,794 vs est. 182,229,727 (-4%)
• EPS: 0.529 vs est. 0.509 (4%)
• Market Cap: 995,745,517
• Sector, Industry: Financial Services, Banks - Regional

👀 Stocks To Add To Your Watchlist

$FATE ( ▼ 1.65% ) · NASDAQ Global Market — Fate Therapeutics, Inc. Healthcare/Biotechnology
YTD: -32.402%
Market Cap: $138,705,930

FATE exhibits standout resilience with a remarkable 14.02% spike on May 19, reversing a volatile trend in its sector. This clinical-stage biopharmaceutical company, specializing in programmed cellular immunotherapies for cancer and immune disorders, shows significant insider confidence.

With substantial insider investments in May and strategic collaborations, including with Ono Pharmaceutical and Janssen Biotech, FATE positions itself as a notable player in biotech innovation.

$CGC ( ▼ 3.88% ) · NASDAQ Global Select — Canopy Growth Corporation Healthcare/Drug Manufacturers
Specialty & Generic
YTD: -54.167%
Market Cap: $237,706,920

Despite facing a tumultuous period with significant volatility, highlighted by a sharp -22.81% drop on the last trading day, Canopy Growth exhibits resilience in the speculative healthcare sector. The past month's performance, particularly a notable 18.57% surge on May 16 and consistent high-volume trading, signals investor interest and potential for rapid rebounds.

Investors should watch CGC closely for signs of stabilization or further sector-driven momentum, keeping in mind the broader market uncertainties and pending legal challenges indicated by recent class action alerts. This stock may present a high-risk, high-reward opportunity for those adept at navigating speculative investments within the volatile healthcare landscape.

$REAX ( ▼ 0.25% ) · NASDAQ Capital Market — The Real Brokerage Inc.
Real Estate/Real Estate - Services
YTD: -10.435%
Market Cap: $849,544,000

Despite recent market volatility, REAX stands out with its proactive approach to creating shareholder value. The company recently announced a significant $150 million share repurchase program, a robust sign of confidence from its Board in the company's long-term strategy.

Serving as a technology powerhouse in the real estate sector, Real's commitment to innovation and expansion across North America underlines its potential for growth. Investors may find REAX an attractive option for exposure to the tech-driven real estate service market.

$EOSE ( ▼ 1.97% ) · NASDAQ Capital Market — Eos Energy Enterprises, Inc.
Industrials/Electrical Equipment & Parts
YTD: -24.774%
Market Cap: $946,778,560

EOSE, specializing in zinc-based energy storage solutions, is navigating a challenging landscape with its stock price currently at $4.16, marking a significant drop from its 52-week high of $7.36.

Despite recent volatility, fueled by an ongoing investigation into potential securities fraud, the company continues to innovate in the utility and renewable energy sectors. Investors should closely monitor EOSE's response to its legal challenges and potential for recovery as it advances battery storage technologies.

$RCAT ( ▼ 5.83% ) · NASDAQ Capital Market — Red Cat Holdings, Inc. 
Technology/Computer Hardware
YTD: -50.126%
Market Cap: $540,946,035

Amidst an atmosphere of increased volatility and market uncertainties due to the U.S.-China trade tensions, RCAT has shown resilience, with a pronounced spike in volume and price movement in recent sessions.

Notably, the stock witnessed a substantial volume of 10,662,700 and a price jump to $6.65 on May 14, 2025, despite broader sector performance displaying mixed signals. This activity coincides with substantial insider trades and ongoing legal investigations that might influence investor sentiment. Keen observers might find potential in RCAT's technology sector footprint and recent momentum for strategic positioning.

That’s it for this episode!

Thank you for taking the time to read today’s email! Your support is what allows me to send out this newsletter for free every week. 

Disclaimer: This newsletter is for informational purposes only and contains forward-looking statements that involve risks and uncertainties. Investor Insights Systems does not provide financial advice—please consult a licensed advisor before making investment decisions.