May 28 (Reuters) - Shares of biotech-turned-AI company Rocket One jumped around 60% in premarket trading on Thursday, as the stock began trading under its new name and ticker for the first time.
Formerly called Hoth Therapeutics, the company had announced earlier this month that it would re-brand itself to Rocket One Inc and restructure its business to pursue opportunities in AI infrastructure, semiconductor technologies and AI computing.
Hoth Therapeutics had been developing an experimental skin treatment
drug, but the company was yet to report any revenue from its operations and reported a loss of 17 cents per share in the March quarter. It aims to continue its biotech business under a separate subsidiary.
In a statement on Wednesday, the company said it will focus on developing space-based AI systems for satellites.
Space exploration has garnered huge investor interest after Elon Musk's rocket company SpaceX unveiled its filing for an initial public offering (IPO) last week, which saw smaller space stocks including Rocket Lab and Intuitive Machines rally.
While the hype for the space economy is relatively new, AI has been a dominant theme on Wall Street for some time now. Last month, footwear maker Allbirds and social media firm Myseum announced a sudden re-brand with a new AI-related identity, which saw their shares jump sharply in a sign of investor mania.
Several small companies whose legacy businesses have no connection to AI have announced a pivot, underscoring how the sector's status as a magnet for investment capital can also provide firms a chance to raise funds.
Rocket One had a market capitalization of just over $26 million as of last close. Its shares were up 58.1% to $2.15 on Thursday.
(Reporting by Shashwat Chauhan in Bengaluru; Editing by Devika Syamnath)
