Phoenix Asia Holdings Ltd. (PHOE) shares surged 47.43% to $28.10 in after-hours trading Wednesday after the company announced a $1 billion stock acquisition of clinical-stage pharmaceutical firm ACEA Pharma Inc. The deal marks a dramatic pivot from Phoenix's construction roots into oncology and autoimmune drug development.

Inside The $1 Billion Stock Acquisition

Phoenix will issue 100 million newly-issued ordinary shares, valued at $1 billion, to ACEA Therapeutics Inc., the Cayman Islands-based transferor that holds 100% of ACEA Pharma's outstanding equity. The deal, announced Monday, requires Hart-Scott-Rodino antitrust clearance, which means the parties must submit premerger notifications to the Federal Trade Commission and the Department of Justice. It also needs Nasdaq review, including a possible reverse-merger or change-of-control determination. Closing is expected in the second quarter.

$20M Convertible Note

Alongside the acquisition, the Hong Kong-based substructure works company issued a $20 million interest-free convertible promissory note to Phoenix Prosperity Investment Limited, its controlling stockholder, for advisory and deal-support services.

Trading Metrics, Technical Analysis

Phoenix Asia Holdings has a market capitalization of $411.70 million, with a 52-week high of $133.12 and a low of $2.73. The small-cap stock's Relative Strength Index (RSI) is 49.89, indicating neutral momentum. Over the past 12 months, PHOE has gained 557.24%. Currently, the stock sits at about 12.5% of its 52-week range. PHOE closed the regular session down 33.36% at $19.06, according to market data. MarketDash's Edge Stock Rankings indicate that PHOE stock is experiencing a positive price trend across all time frames.