Cure will issue shares of its common stock to Therapix in exchange for the assets, and Therapix will as a result become a significant shareholder in Cure. Therapix chief executive officer and chairman, Ascher Schmulewitz, will be appointed to Cure’s board of Directors. Cure will be raising additional financing as one of the conditions of the acquisition, some of which will be provided by Therapix.
“The proposed acquisition has the potential to build on our existing relationship with Therapix and create unique value by combining Therapix’ promising clinical programs with Cure’s proprietary drug delivery technology and manufacturing capabilities,” said Rob Davidson, CEO and chairman of Cure Pharmaceutical. “Furthermore, this transaction is a further step in Cure’s efforts toward up-listing to the NASDAQ.”
Therapix is developing a cannabinoid-based pipeline with drug development programs using dronabinol, a synthetic cannabinoid already approved by the FDA alone and as drug combinations. The sale of these assets will allow Therapix to focus on its pain programs.
“Integrating these clinical and preclinical assets within Cure’s operational infrastructure will lead to differentiated therapies and execution efficiencies,” said Dr. Shmulewitz. “Our clinical programs are already showing positive results and we believe this is an important step in accelerating our progress toward helping patients in need.”