THERAPIX BIOSCI/S ADR (NASDAQ: TRPX) said Tuesday that it has signed a letter of intent for a merger with the Canadian cannabis company Destiny Biosciences.
The deal is a stock-for-stock transaction valuing Therapix at about $48 million plus cash on hand at closing. The deal values the combined company at about $151 million, Therapix said.
The Israeli cannabinoid pharmaceutical company said it expects a definitive agreement to be struck in the third quarter of this year; upon closing, Therapix equity holders are anticipated to hold about 32% of the combined company.
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"Combining the two companies creates a unique patented and valuable opportunity to create unique and very specific cannabis-based medicinal formulations literally from seed to sale, and the companies have already identified and commenced work in immediate areas of interest," according to Therapix.
The stock was trading higher by 71.3% at $3.94 at the time of publication Tuesday. The stock has a 52-week high of $9.30 and a 52-week low of $2.22.
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