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FSD Pharma signs binding letter of intent to acquire NASDAQ-listed Therapix Biosciences, a developer of cannabinoid-based treatments

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Therapix is currently repurposing an FDA-approved cannabinoid for the treatment of central nervous system disorders, sleep disorders, pain management, mild cognitive impairment, traumatic brain injury and infectious diseases.

Additional Information:

Company: FSD Pharma Inc.
Website: http://www.fsdpharma.com
Stock Symbol: CSE: HUGE
Date Published: Oct 23, 2018
Transcript: Available

Video Transcript:

I’m Megan Edwards for Investmentpitch Media

FSD Pharma Inc. has signed a binding letter on intent to acquire Therapix Biosciences Ltd., a specialty clinical-stage pharmaceutical company developing unique cannabinoid technologies.

Therapix is currently repurposing an FDA-approved cannabinoid for the treatment of central nervous system disorders, sleep disorders, pain management, mild cognitive impairment, traumatic brain injury and infectious diseases.

Professor Raphael Mechoulam, Chairman of the Therapix Scientific Advisory Board, commented: "I hope this proposed transaction will help unlock the full potential of the endocannabinoid system within the human body in enhancing quality of life and improving treatment outcomes."

Professor Mechoulam, who co-discovered "the entourage effect" of the endocannabinoid system, is known as the 'Godfather of Medicinal Cannabis'.

Dr. Ascher Shmulewitz, Chairman and interim CEO of Therapix, stated, "Our research at Therapix is focused on a multifaceted, clinical drug development program that is poised to potentially yield novel, breakthrough therapeutic discoveries to benefit mankind and medicine in ways we have never before seen. We are excited to join FSD Pharma to be part of one of the fastest growing, most forward-thinking companies in this sector. Our combined resources and highly competent scientific and business leadership teams, position the combined entity well to execute upon our shared vision to deliver proprietary cannabinoid platform technologies to both the professional and retail markets globally. Our proprietary technologies and active, mature clinical research programs are focused on delivering safer, more effective cannabinoid-based products that address a broad spectrum of large-market diseases with high unmet clinical needs."

The LOI will be followed by a definitive agreement within 30 days, with Therapix Biosciences shareholders receiving US$48 million of FSD stock based on a 20-day average.

The acquisition is subject to a number of customary conditions.

FSD Pharma intends to apply to list on NASDAQ.

Dr. Raza Bokhari, Director of FSD Pharma, stated: "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. With this acquisition, FSD Pharma is signaling our commitment to furthering very high-value pharmaceutical R&D clinical programs centered on cannabinoid molecules, a number of which are actively under way at several distinguished medical institutions across the globe. 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."

Anthony Durkacz and Zeeshan Saeed, Co-founders and Directors of FSD Pharma, added: "We are very pleased to announce our intention to acquire Therapix Biosciences. Their concerted efforts to advance the scientific work of Professor Rafael Mechoulam speaks for itself. It is a huge step forward in realizing our vision and mission to become a leading global player in Cannabinoid based pharmaceuticals, medicinal Marijuana in addition to the recreational use of Cannabis."

FSD Pharma through its wholly-owned subsidiary FV Pharma, is a licensed producer of marijuana under the Access to Cannabis for Medical Purposes Regulations.

Headquartered at the former 3.8 million square foot Kraft plant in Cobourg, Ontario, approximately an hour's drive from Toronto, FV Pharma management's mission is to transform the facility into the largest hydroponic indoor cannabis facility in the world.

The company is currently in phase 1 of its growth plans with 25,000 square feet of indoor grow space available at its Ontario facility and an additional 220,000 square feet in development with an expected completion date of January 2019.

The shares began trading on the CSE on May 29th and are currently trading at $0.41.

For more information, please visit the company’s website, www.fsdpharma.com, or contact Zeeshan Saeed, Co-Founder & Executive Vice President at 416-854-8884 or email zeeshan@fsdpharma.com.

For investor relations email IR@fsdpharma.com.

I’m Megan Edwards for Investmentpitch Media