Cannabis Company Therapix Biosciences to Raise $2.25 Million in Direct Offering

Israel-based cannabis company Therapix Biosciences Ltd. has signed agreements with unidentified investors to raise $2.25 million in registered direct offering, the company announced Thursday. Therapix’s American Depositary Shares are traded on Nasdaq, opening at $3.5 on Thursday.

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Founded in 2004, Therapix develops cannabis-based drugs for the treatment of neurological conditions, pain management, and infectious diseases.

In October, Therapix signed a deal to be acquired by Canadian FSD Pharma Inc. for $48 million worth of FSD Pharma stock—nearly three times Therapix’s market value. After hitting certain snags, the deal was scrapped in December.

The private placement, expected to close on April 1, will be used for general corporate purposes, product development, and the repayment of some of Therapix’s outstanding debt.