BRIEF—Fate of Therapix now based on a merger with Destiny

Having terminated a proposed merger plan with FSD Pharma last December, Israel-based Therapix Biosciences, a clinical-stage pharmaceutical company focusing on the development of cannabinoid-based treatments, has now signed a letter of intent (LiI) for a proposed merger with Canada’s Destiny Biosciences Global Corp.

The transaction will create a combined company that focuses on Therapix' proprietary intellectual property (IP) and related technology, and assets pertaining to all clinical stage pharmaceutical applications and Destiny's genomics-based breeding techniques and development capabilities.

The stock for stock transaction values Therapix at around $48 million plus any cash on hand at the closing, and the combined company at about $151 million.

The terms of the LOI will be superseded by a definitive agreement, which the parties expect to execute during the third quarter of 2019, and which will be subject to certain closing conditions.

Upon closing, current Therapix equity holders are expected to own approximately 32% of the combined company.