US-based pharmaceutical company Phytanix Bio has agreed to merge with Chain Bridge I (CBRG), a special purpose acquisition company (SPAC), to become a publicly traded company.
The Boards of Directors of both parties have unanimously approved the proposed SPAC merger, including a separate vote by CBRG’s independent directors.
The transaction is expected to be completed in the fourth quarter of this year, subject to approval from both CBRG and Phytanix Bio shareholders.
Upon closing, the combined company will be named Phytanix Inc., with its shares to be listed on the Nasdaq Capital Market and would receive up to $11m of cash held in trust.
The new combined company will be led by Phytanix Bio’s founders Colin Stott as chief operating officer, Barrett Evans as CEO and Dominic Schiller leading the legal and IP strategy.
Phytanix CEO Barrett Evans said: “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, having played crucial roles in the development, and protection of Sativex and Epidiolex.”
Phytanix is engaged in the development of cannabinoid and cannabinoid-like medicines.
The company uses botanically inspired active pharmaceutical ingredients to generate new mechanisms of action and IP across a range of therapeutic areas.
It also aims to reduce potential adverse events and de-risk overall drug development strategy.
Phytanix focuses on active ingredients which have already shown good tolerability in humans, or those closely related to existing drugs that have shown tolerability in large clinical cohorts.
The merger is expected to provide the company with capital to advance its lead candidates into clinical trials, targeting treatment-resistant facial seizures and Painful Bladder Syndrome (PBS).
Nelson Mullins Riley & Scarborough served as legal counsel to CBRG, while Catherine Basinger Evans, Esq. as advisors and Titan Advisors served as capital markets advisors to Phytanix Bio, on this transaction.
CBRG director and CEO Andrew Cohen said: “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.
“The team’s initial drug pipeline is well-conceived and designed.
“Having developed regulatory-approved medicines in this sector before, the management group is equipped with the knowledge and expertise to advance a new portfolio of medicines with similar therapeutic capabilities that can address unmet medical needs.
“Together as Phytanix, we look forward to transforming our promising technologies and IP into world-class, regulatory-approved medicines.”
