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- Incannex Healthcare (IHL) completes its acquisition of APIRx Pharmaceutical, a biotechnology company focused on research, development and production of prescription pharmaceutical cannabinoid medicines
- The purchase price of US$93.3 million (A$124 million) will be an all-scrip transaction assessed at APIRx’s seven-day volume-weighted average price
- Incannex believe the acquisition will significantly strengthen the company’s position as market leader in cannabinoid and psychedelic treatment development by expanding Incannex’s addressable markets globally by over US$400 billion per annum
- In anticipation of completing the transaction, the Incannex medical and scientific team will continue its assessment of APIRx projects to prioritise development of its therapeutic candidates
- IHL shares are down 2.86 per cent, trading at 68 cents
Incannex Healthcare (IHL) has completed its acquisition of APIRx Pharmaceutical, a biotechnology company focused on research, development and production of prescription pharmaceutical cannabinoid medicines.
The purchase will cost Incannex US$93.3 million (A$124 million) in the form of an all-scrip consideration at APIRx’s seven-day volume-weighted average price.
At the completion of the proposed transaction, all APIRx sellers will each be required to enter a voluntary escrow deed for the IHL shares to be issued for a period of 12 months.
Incannex believe the acquisition will significantly strengthen the company’s position as market leader in cannabinoid and psychedelic treatment development by expanding Incannex’s addressable markets globally by over US$400 billion per annum.
APIRx will be entitled to nominate one board member to Incannex after completion of the proposed transaction.
Currently, APIRx has 22 active clinical and pre-clinical research and development projects utilising proprietary technologies which brings Incannex a diverse portfolio of promising therapeutic candidates targeted at treating an extensive range of conditions.
Incannex has commenced the documentation of the long form contract required to complete the transaction.
In anticipation of the completed transaction, the Incannex medical and scientific team will continue its assessment of APIRx projects to best prioritise the development of its therapeutic candidates.
Incannex anticipates budgeting approximately $5 million of expenditure on the APIRx product suite in the first year of acquisition. However, the budget may be revised up to $10 million following the conclusion of the loyalty option offer in April, which could raise up to around $28 million in development capital for Incannex.
IHL shares were down 2.86 per cent, trading at 68 cents at 11:51 am AEDT.
