$58M Merger: Chain Bridge I Acquires Cannabinoid Medicines Innovator, Eyes Nasdaq Listing
Chain Bridge I (NASDAQ:CBRG) announced on Monday the acquisition of Phytanix Bio, a pharmaceutical company specializing in the development of therapeutics based on cannabinoid and cannabinoid-like molecules. The transaction, valued at $58 million, also includes the assumption of preferred stock and short-term debt, which will convert to preferred stock upon the deal’s closure, slated for the fourth quarter of 2024.
Phytanix Bio’s Strategic Acquisition Overview
Phytanix Bio, a company founded by former GW Pharmaceuticals leaders, holds exclusive intellectual property that has been central to the creation of FDA-approved cannabinoid-based medicines like Sativex and Epidiolex. With the acquisition, the newly formed entity will be listed on the Nasdaq under the ticker “PHYX”, encapsulating a shared vision for advancing therapeutic solutions for conditions with significant unmet medical needs.
The combined company, to be named Phytanix Inc., will be spearheaded by Barrett Evans as CEO, a key figure from EMC2 Capital. Other founders, including Colin Stott and Dominic Schiller, will assume roles as COO and head of legal and IP strategy, respectively, ensuring the continuity of innovative leadership that has previously spearheaded regulatory-approved cannabinoid medicines.
Leadership Celebrates Strategic Pharma-Cannabis Merger
"We are very happy to join forces with CBRG," said Evans in a press release. "Phytanix has all the necessary IP, scientific acumen and expertise, as well as management experience to create a new generation of medicines made from cannabinoid and cannabinoid-like molecules for patients with serious unmet medical needs. Our team brings a wealth of firsthand experience and executional knowledge in cannabinoid-based medicine innovation and intellectual property generation."
Furthermore, Andrew Cohen, CEO of Chain Bridge I, mirrored this sentiment, praising Phytanix's promising drug pipeline and seasoned management as pivotal for future successes: "After an exhaustive search for the right partner, we are delighted to merge with Phytanix Bio. The talented founding team has the depth of experience we were looking for in a still nascent industry of developing life-changing cannabinoid and cannabinoid-like medicines."
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Innovative Cannabinoid Treatments
Phytanix’s strategy revolves around leveraging botanically inspired active pharmaceutical ingredients to innovate across various therapeutic areas, improving safety profiles and advancing drugs with known tolerability in humans. The focus is on novel treatments for resistant facial seizures and Painful Bladder Syndrome, conditions that currently have limited effective treatment options.
Merger Details And Legal Guidance
The transaction, which has received unanimous approval from both companies’ Boards of Directors, does not hinge on a minimum cash condition but anticipates raising additional capital through convertible preferred stock post-deal. This approach aims to underpin Phytanix's clinical trials and broader drug development initiatives.
Legal guidance for the transaction is being provided by Nelson Mullins Riley & Scarborough for Chain Bridge I, with Catherine Basinger Evans, Esq., advising Phytanix Bio. Additional details regarding the merger's final stages and governance will be disclosed following regulatory approvals and shareholder votes.
CBRG Price Action
CBRG's shares were trading 0.44% lower at $11.20 per share at the time of this writing around 3:15 PM ET Tuesday.
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