Therapix Biosciences Ltd. (NASDAQ: TRPX) is having an incredibly strong start to the trading session this morning, and for good reason. The company is the center of acquisition news, and it looks like the acquisition is going to happen at an incredible premium. Of course, the news is exciting investors who are sending the stock toward the top. Today, we’ll talk about:
- The acquisition;
- what we’re seeing from TRPX as a result; and
- what we’ll be watching for ahead.
TRPX Announces Acquisition News
As mentioned above, Therapix Biosciences is having an incredibly strong start to the trading session this morning after announcing acquisition news. According to various reports, a small, Canadian marijuana producer by the name of FSD Pharma intends on acquiring the company.
If the deal goes through, TRPX will be acquired at a price of $48 million in an all-stock transaction. This would be a great move for FSD as the company has a license to cultivate medical marijuana in Canada and has been harvisting cannabis since last month. So, bringing TRPX and its assets to the table would be a strong value addition for the company. The move would also be good for Therapix as it would provide investors with an immediate return of value and an opportunity to get involved in the Canadian cannabis market with a company that’s in early stages and has the potential to climb.
What We’re Seeing From The Stock
As investors, one of the first lessons that we learn is that the news moves the market. In the case of Therapix Biosciences, the news proved to be overwhelmingly positive. After all, it looks like not only is an acquisition going to happen, it will happen at an incredible premium, returning value to shareholders. So, it comes as no surprise to see that excited investors are pushing the stock toward the top. At the moment (9:17), TRPX is trading at $7.20 per share after a gain of $2.78 per share or 62.90% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on TRPX. In particular, we’re interested in following the story surrounding the acquisition to see if it does come to fruition. Of course, in order for it to take place, customary closing conditions must be satisfied and regulators need to approve the transaction. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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