An emerging CBD company plans to take over a Nasdaq-traded pharmaceutical corporation focused on developing cannabinoid pharmaceuticals.
Under an agreement announced Tuesday, Heavenly Rx will execute a reverse takeover of Therapix Biosciences.
When the proposed deal is complete, the combined entity will be known as Heavenly Rx.
Paul Norman, CEO of Heavenly Rx and former president of The Kellogg Co., will serve as CEO.
Heavenly Rx also announced that Clive Sirkin, who most recently served as chief growth officer for The Kellogg Co., will join the company’s board of directors.
“Today’s announcement marks the opportunity for Heavenly Rx to become a public company,” Norman said in a company statement announcing the deal.
The move follows a series of acquisitions and investments by Heavenly Rx over the past several months, focusing on food and wellness companies. Heavenly Rx is a Toronto-based subsidiary of Sol Global Investments.
Combining Therapix into Heavenly Rx will expand the new entity’s wellness investments. Based in Israel, Therapix currently focuses on developing THC drugs for treating Tourette syndrome, obstructive sleep apnea and pain.
The deal will begin with an initial share exchange between the two companies. Afterward, Therapix will issue up to 20% of its shares backed by U.S. currency, called American depositary shares. Therapix would use the proceeds to acquire an interest in Heavenly Rx.
The share exchange, which will close after 30 days, will mark the first step toward the combination of the Therapix and Heavenly Rx.
Therapix Biosciences currently trades on the Nasdaq as TRPX.