FSD Pharma’s Acquisition of Therapix Hits a Snag
In October, FSD agreed to buy Therapix for $48 million in stock, but a Tuesday filing by Therapix revealed that the companies have returned to the negotiating table
FSD Pharma Inc.’s acquisition of Israeli cannabis company Therapix Biosciences Ltd. might have hit a snag. On Tuesday, Nasdaq-listed Therapix filed a statement to investors saying that the deal—for which a binding, detailed letter of intent was filed in October— is still being negotiated. FSD wishes to modify certain material terms of the transaction, Therapix said, adding that it cannot guarantee that those negotiations will result in a definitive agreement.
By market close Tuesday, Therapix’s stock was down 6.42%.
Founded in 1994 as a financial services company under the name Century Financial Capital Group, the company was renamed FSD Pharma in May, following a merger with Canadian cannabis producer FV Pharma Inc. The company listed on the Canadian Securities Exchange on May 28.
FSD co-chairman Raza Bokhari. Photo: Orel Cohen
Founded in 2004, Therapix develops cannabis-based drugs for the treatment of neurological conditions, pain management, and infectious diseases.
In October, FSD Pharma said it agreed to buy Therapix, a clinical-stage developer of cannabinoid-based drugs, for $48 million worth of FSD Pharma stock—nearly three times Therapix’s market value.
In a November interview, FSD Pharma Inc. co-chairman Raza Bokhari told Calcalist that the Therapix merger is FSD’s way of signaling that it is focusing on the pharmaceutical aspects of cannabis. FSD Pharma believes in Therapix because of its focus on synthetic cannabinoid drugs, which FSD prefers over botanical cannabis, he said.