Incannex Healthcare has completed a share sale and purchase agreement to acquire 100% of US-based biotech APIRx Pharmaceuticals in an all-scrip deal subject to shareholder approval.
Under the arrangement, Incannex will issue APIRx stakeholders with more than 218 million shares at 57.3 cents each, a price agreed when binding term sheets were signed in March.
Shares will be escrowed for 12 months following completion of the deal, expected in June.
APIRx products include cannabinoid-based chewing gum and chewable tablets products for conditions such as atopic dermatitis, glaucoma and addiction recovery.
It has 22 clinical trial and pre-clinical research and development projects underway, with drug candidates targeting indications including pain, dementia and Parkinson’s disease.
CEO and managing director Joel Latham said: “The acquisition of APIRx presents us with clear long and short-term opportunities for significant value growth.
“Several drug candidates have shortened regulatory pathways to break into areas of patient need representing very large global markets. These candidates are our initial development priority.”
“Incannex’s strong cash position allows us to pursue these near-term product opportunities at the same time as moving at pace to develop the Incannex combination drug candidates.”