TEL AVIV, Oct 23 (Reuters) - Canada's FSD Pharma Inc signed a letter of intent to acquire Israel's Therapix Biosciences Ltd for $48 million in stock, combining two complementary businesses focused on the research and development of cannabinoid treatments.
Therapix shareholders will receive about 130 million class B subordinate shares of FSD Pharma, nearly 10 percent of the company, FSD said on Tuesday. The price per share of Therapix is $13.7, triple its close of $4.4 on Monday.
FSD's shares will continue to be listed on the Canadian Securities Exchange and the Frankfurt Stock Exchange and the company intends to apply to list on Nasdaq.
"The intended acquisition of Therapix Biosciences at this time is a pivotal step in the evolution of our company by entering the high-value medical cannabis market," FSD Director Raza Bokhari said in a statement.
Therapix in April announced positive results from a mid-stage trial of its cannabinoid-based drug to treat Tourette syndrome.
The letter of intent will be superseded by a definitive agreement, which the companies intend to execute within 30 days. The deal is expected to be completed by the first quarter. (Reporting by Tova Cohen, Editing by Ari Rabinovith)