Incannex Healthcare Limited (NASDAQ:IXHL) (ASX: IHL) announced that it has executed a term sheet with binding commercial terms to wholly acquire APIRx Pharmaceutical USA, LLC, subject to shareholder approval under ASX listing Rule 7.1.
The proposed acquisition is for 100% of the issued share capital in APIRx Pharmaceutical USA, LLC by Incannex Healthcare Limited from the APIRx shareholders.
Consideration of $93.3 million is payable in the form scrip consideration at the 7-day volume-weighted-average-price (VWAP) immediately. The completion of the proposed transaction is conditional upon the satisfaction of certain conditions.
APIRx will be entitled to nominate one board member to Incannex after completion of the proposed transaction.
Why It Matters?
The acquisition of APIRx will significantly strengthen Incannex's position as a market leader at the forefront of cannabinoid and psychedelic treatment development. It will:
- Add a large portfolio of intellectual property with granted and pending patents.
- Expand Incannex's addressable markets globally and addressable market sizes by over US$400bn per annum.
- Further enhance Incannex's technical and drug development capability by adding some of the industry's longest standing and best-known scientists to the Incannex team.
- Expand the Company's drug delivery capability to include APIRx's patented delivery technologies.
In addition, APIRx has twenty-two (22) active clinical and pre-clinical research and development projects.
"We believe that bringing together Incannex and APIRx will bolster our position as a leader in the medicinal cannabinoid sector and will further set IHL apart from other players in the industry," Joel Latham, CEO and managing director of Incannex, said.
What’s Next?
Incannex has commenced the documentation of the long form contract required to complete the proposed transaction. Shareholder approval will be sought by means of an extraordinary general meeting of shareholders.
In anticipation of the completion of the transaction, the Incannex medical and scientific team continue thorough assessment of the APIRx projects to best prioritise the development of the APIRx therapeutic candidates.
“Both companies have proven track records to deliver innovative projects and the goal of this transaction to create the global leader in the cannabinoid, psychedelic, and combination pharmaceuticals space,” APIRx co-founder, Dr George Anastassov, said. “We intend to do this by innovatively addressing conditions for which there are only modest, or no safe and effective, treatment options."
Photo: Courtesy Ryoji Iwata on Unsplash
