How will the acquisition affect PharmChem's share price and market capitalization in the short term?

Short‑term price reaction:

The shareholder‑approval headline is a classic “completion catalyst” for a pending transaction and will likely trigger an immediate, bullish spike in PCHM. The news sentiment score of 60 (moderately positive) combined with the market’s tendency to price‑in the deal premium (typically 10‑20 % above the pre‑announcement level) suggests a rapid 8‑12 % intraday rally once the press release disseminates. Liquidity on the OTC market is thin, so the move may be accentuated—expect a tight, high‑volume burst followed by a short‑term pull‑back as opportunistic traders book gains.

Market‑cap implication:

Assuming the current float of roughly 30 M shares (≈ $0.45 current price) → ~ $13.5 M market cap, a 10 % price lift would lift the cap to roughly $14.9 M. This modest increase is dwarfed by the transaction value that will be reflected on the acquiring side; the real driver of the cap will be the conversion ratio and cash consideration disclosed in the definitive agreement (often a 0.8 × cash‑plus‑stock deal). Until those terms are released, the market will price in only the perceived premium, not the full transaction value.

Trading take‑aways:

- Enter on the pull‑back: Look for a break‑away rally above the prior resistance (≈ $0.48) with volume > 1.5× average. A 5‑minute breakout and a retest of the new support around $0.50 can provide a low‑risk entry.

- Set tight stops: Because OTC stocks can be volatile, place stop‑losses 2‑3 % below entry to protect against a swift reversal once short‑sellers absorb the surge.

- Exit strategy: Target a 8‑12 % upside from entry, or consider a “sell‑the‑news” exit if price reaches the implied premium level (≈ $0.55). Monitoring the filing of the definitive agreement (SEC Form 8‑K) will be critical—any deviation from the expected cash/stock consideration can either amplify the move or trigger a corrective sell‑off.