The Incannex Healthcare Ltd share price charged higher today after the company progressed on their latest acquisition.
Incannex announced it has entered into a share sale and purchase agreement to acquire APIRx Pharmaceuticals. APIRx is a leading pharmaceutical company specialising in cannabinoid active pharmaceutical ingredients and drug products.
The acquisition will be made by an all-scrip transaction of 218 million Incannex shares at a value of $0.573 per share.
A shareholder vote will be held at the extraordinary general meeting in June 2022.
If approved, the shares will be issued at the completion of the acquisition and APIRx will become a wholly-owned subsidiary of the company.
Incannex noted that the acquisition of APIRx delivers a strong portfolio of patented drug candidates. This includes 22 development programs covering a total addressable market of US$400 billion per annum. Together, Incannex and APIRx will form the world’s largest portfolio of patented medicinal cannabinoid drug formulations and psychedelic treatment protocols.
Incannex CEO and managing director, Joel Latham commented:
“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. Once the acquisition of APIRx has been finalised, Incannex will have many diverse projects under development, the progress over which we will update the stock exchanges with ongoingly.”
After today, Incannex boasts a market capitalisation of around $550 million.