FSD Pharma Inc. (CSE: HUGE) (OTCQB: FSDDF) announced it will acquire Therapix Biosciences Ltd. (NASDAQ: TRPX). The acquisition will complete on October 22nd, 2018.
The merger will combine two businesses to develop upon the medical cannabis industry as well as the research and development of advanced cannabinoid treatments.
Therapix Biosciences shareholders will receive $48 million (USD) of FSD stock upon closing of the Transaction. The Transaction is structured at a fixed price of $48M USD ($62.4M CAD), 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 intended acquisition of Therapix Biosciences at this time is a pivotal step in the evolution of our company by entering the high-value medical cannabis market. In addition to growing products for the direct to consumer retail cannabis market in Canada, we are now developing a new class of novel cannabinoid-based treatments for several central nervous system disorders, including chronic pain, fibromyalgia, irritable bowel syndrome and several other disease areas.” said said Dr. Raza Bokhari, Director of FSD Pharma and Chairman of the M&A committee.
“Our strategy also involves pursuing access to the international capital markets to attract high-quality, high-profile financial and strategic investors in this space who can participate in and assist with accelerating our growth plans and establishing a strong position in this area”, continued Bokhari.
FSD Pharma shares were trading 18.75% higher on the Canadian exchange while Therapix shares were trading 33.4% higher.