Incannex shares reach a high of 44c on landmark $125m deal to buy US cannabinoid pioneer APIRx
Health & Biotech
Health & Biotech
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Incannex shares have rocketed higher today on news it has signed a formal deal to buy out APIRx and is set to be a global powerhouse in medicinal cannabis and psychedelics.
Investors have reacted to news that clinical stage pharmaceutical company Incannex Healthcare (ASX:IHL) has officially signed a business deal to buy US-based APIRx Pharmaceuticals USA, sending the share price surging ~19% to a high of 44 cents.
Stakeholders in APIRx will be issued a total of 218,169,506 new shares at a value of 57.3 cents, equating to ~$125 million, the price agreed at the signing of the binding terms sheets announced in March.
APIRx was established as a corporate entity in the Netherlands to amalgamate the intellectual property assets of medicinal cannabinoid pioneers, and APIRx co-founders Dr George Anastassov and Lekhram Changoer.
The company has been working on cannabinoid treatments for pain management, dementia, Parkinson’s disease, restless leg syndrome, gastrointestinal diseases, periodontitis, addiction disorders, skin, and ophthalmic conditions.
The deal reinforces IHL’s position as a global medicinal cannabis and psychedelic powerhouse.
The two companies when combined will hold the largest portfolio of patented medicinal cannabinoid drug and psychedelic treatment protocols.
IHL CEO and managing director Joel Latham said APIRx presents the company 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,” Latham said.
“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.”
He said once the acquisition of APIRx has been finalised, Incannex will have many diverse projects under development.
IHL says its cannabinoid combination treatment IHL-216A has been observed to have a strong neuroprotective effect in a widely known model of sports concussion in a study conducted at the Department of Neuroscience, Monash University.
The company is also progressing other studies, including into psilocybin and psychotherapy for Generalised Anxiety Disorder (Psi-GAD).
This article was developed in collaboration with Incannex Healthcare, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.