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.
Don’t miss out on the top cannabis stories of the day. Click here to sign up for our daily insider newsletter.
„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.
© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.