Cannabis-focused investment company SOL Global Investments Corp. (CSE: SOL) (OTC: SOLCF) said Tuesday that its portfolio company, Heavenly Rx, Ltd., has entered into a memorandum of understanding with Therapix Biosciences Ltd (NASDAQ: TRPX) to chase a business combination.
Therapix Biosciences is a pharmaceutical company with a portfolio of technologies based on cannabinoid pharmaceuticals.
Under the MOU, both companies will further discuss a final agreement for a business combination, which includes a reverse takeover of Therapix by Heavenly Rx.
The parties will enter into a share exchange between Therapix and Heavenly Rx, under which Therapix will issue up to 20% of its American Depositary Shares to obtain an interest in Heavenly Rx.
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"Today's announcement marks the opportunity for Heavenly Rx to become a public company. It was just a matter of finding the right company to go forward with and we have found a great partner with Therapix. The possibility of marrying our CPG expertise with Therapix's specialized background positions this proposed transaction to win long-term in the vastly expanding CBD marketplace," Paul Norman, CEO of Heavenly Rx said in a statement.
Upon a successful reverse takeover, the new company would be renamed Heavenly Rx, Ltd., and Norman would be appointed as CEO of the combined business.
This news follows a decision in November by Therapix to end merger talks with cannabis company Destiny Biosciences.