Canadian medical cannabis company FSD Pharma Inc. announced the signing of a binding letter of intent (LOI) to acquire Israeli speciality pharmaceutical company Therapix Biosciences Ltd.
Therapix Biosciences shareholders will receive $48 million of FSD stock upon the closing of the deal. The transaction is structured at a fixed price of C$62.4 million ($48 million), representing approximately 130 million class B subordinate shares of FSD Pharma and nearly 10 percent of FSD.
With this acquisition, FSD Pharma is signalling its commitment to furthering very high-value pharmaceutical research and development clinical programs centred on cannabinoid molecules.
The terms of the LOI will be superseded by a definitive agreement, which FSD Pharma and Therapix intend to execute within 30 days. Subject to the satisfaction of these conditions and other conditions precedent, the deal is anticipated to be completed in the first quarter of 2019.