Tel Aviv-based Therapix Biosciences Ltd. (Nasdaq: TRPX) a clinical-stage pharmaceutical company developing cannabinoid-based treatments, has signed a Letter of Intent to be bought by FSD Pharma Inc. (CSE: HUGE) (OTCQB: FSDDF) effective October 22, 2018. The parties said they intend to execute a definitive agreement within 30 days and complete the deal by Q1 2019.
FSD Pharma is a licensed producer of cannabis headquartered in Cobourg, Ontario, near Toronto. It plans to transform its facility there into “the largest hydroponic cannabis facility in the world.” Through its subsidiary FV Pharma, it will engage in cultivation, processing, manufacturing, extracts and R&D.
“With this acquisition, FSD Pharma is signaling our commitment to…R&D clinical programs centered on cannabinoid molecules, a number of which are actively underway at…medical institutions across the globe,” said Dr. Raza Bokhari, Director of FSD Pharma.
The all-stock deal values Therapix at US$48 million. Shareholders of Therapix will receive FSD stock.
Therapix Biosciences’ R&D efforts focus on advancing the scientific work of Prof. Rafael Mechoulam, Chairman of Therapix Scientific Advisory Board, and a leader in cannabis research. Its focus is creating a portfolio of cannabinoid pharmaceuticals. It is currently engaged in drug development programs based on repurposing an FDA-approved cannabinoid (Dronabinol) as follows:
-THX-110 for treatment of Tourette syndrome (TS), Obstructive Sleep Apnea (OSA), and Pain;
-THX-130 for the treatment of Mild Cognitive Impairment (MCI) and Traumatic Brain Injury (TBI);
-THX-150 for the treatment of infectious diseases;
-THX-160 for the treatment of pain.
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Source Therapix press release