Therapix Biosciences Ltd. (NASDAQ: TRPX) rose sharply as Canada’s FSD Pharma announced plans to acquire Therapix Biosciences for $48 million in stock.
The Transaction is structured at a fixed price of $48 million U.S. ($62.4 million Canadian), representing approximately 130 million class B subordinate shares of FSD Pharma and nearly 10% of the Company today.
The final number of class B subordinated shares and percentage ownership of the Company will fluctuate based on the 20-day average of the FSD Pharma stock closing price on the date the Transaction is finalized.
The Transaction is arms' length and no finders fees have been paid. It is anticipated that the common shares of the Company will continue to be listed on the Canadian Securities Exchange (CSE) and the Frankfurt Stock Exchange (FRA), and the Company intends to apply to list on NASDAQ, subject to regulatory approvals.
The terms of the LOI will be superseded by a definitive agreement, which FSD Pharma and Therapix intend to execute within 30 days.
Said FSD official Dr. Raza Bokhari, "With this acquisition, FSD Pharma is signaling our commitment to furthering very high-value pharmaceutical R&D clinical programs centered on cannabinoid molecules, a number of which are actively under way at several distinguished medical institutions across the globe, including among others, the Therapix' investigator-initiated Phase IIa study at Yale University Medical Center in the U.S. for Tourette syndrome Program, the preparations for commencing anticipated subsequent Phase IIb studies at the Hannover and Munich University Medical Schools in Germany for Tourette syndrome program, and collaboration with Assuta Medical Centers in Israel to develop therapeutic products in the field of sleeping disorders."
Shares charged up $1.79, or 40.6%, to $6.21
