Therapix Biosciences Ltd ADR TRPXY

From Analyst

[Fundy13]

I emailed the two analyists who coverTRPX and one just got back to me.  Confimred the info I found that the final number will be $12US per share for TRPX holders.
Also wanted to mention that this is a binding letter of intent, meaning there would be a penalty of some sort payable to the party the freaks the terms if the deal does not go through.  It is not state what the penalty would be, but from my experience they are usually pretty stiff.  FSD probably had to agree to this to have TRPX walk away from other negotiations.

Here is his full email

Hi Ryan,
 
I know it’s confusing.  On page 18 of the PDF for their 424B2 filing they give info on number of ordinary shares and options (remember NASDAQ shares are ADS’s at a 40:1 ratio so 40 ordinary shares per 1 ADS).  So 3.5m shares as you mentioned and then 20.6m options related to ordinary shares (subtracting out what was exercised or expired from what was issued), which puts the fully diluted number over 4m ADS’s.  So it’s closer to $12 per share.  However, remember while this is a “binding letter of intent”, it is not clear what the penalty is for breaking it and they are yet to conclude a definitive agreement. 
 
DESCRIPTION OF ORDINARY SHARES
As of July 13, 2018, our authorized share capital consisted of 300,000,000 ordinary shares, NIS 0.1 par value per share, of which 139,885,534 shares
were issued and outstanding as of such date. All of our outstanding ordinary shares have been validly issued, are fully paid and non-assessable. Our ordinary shares are not redeemable and are not subject to any preemptive right.
 
On January 12, 2014, we effected a reverse split of our share capital, in which every ten ordinary shares were converted to one ordinary share. All
descriptions of our share capital in this prospectus reflect such reverse split.
In the last three years, we have issued an aggregate of approximately 121.5 million ordinary shares in several private placements, options exercises
and public offerings for aggregate net proceeds of NIS 60.5 million (approximately $16.4 million).
 
In addition to ordinary shares, in the last three years, we have issued warrants to purchase an aggregate of 37,867,223 ordinary shares with exercise prices ranging from NIS 0.50 (approximately $0.12) to NIS 1.90 (approximately $0.55) per share, out of which 26,776,256 warrants were exercised and 11,090,967 have expired. In addition, we have granted options to purchase an aggregate of 24,839,278 ordinary shares with exercise prices ranging from NIS 0.50 (approximately $0.13) to NIS 1.061 (approximately $0.28) per share, out of which 41,666 options were exercised and 4,214,779 have expired.
 
I hope this helps!
 
 
Maxim Jacobs, CFA
Managing Partner & Director of Research
 

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[Mining_Engineer_UBC]

Great info! Thanks for sharing.

[easyas123]

Interesting that someone did not want to let it close above $7.60. Makes me a bit nervous.

[edmed]

I can't believe this is still trading so low market really does not expect this deal to go through????? edmed

[Fundy13]

I understand there are always risks before the difinitive agreement is signed and we are after the 30 days that was indicated in the press release so I could see some people getting nervous.  But I feel pretty good about things after HUGE again made a point to mention this deal in a presss release today.   If you Buy today at $7.00 and get $12 in January the is a 71% ROI in two

[easyas123]

Hopefully it is just nervous people who are already in the money locking in profits. Doesn't help whenever deadlines are not met.

[Fundy13]

Always better to under promise and over delivery.  If you are not confident in teh 30 day timeline then best to say 45 or 60 days.  Nobody will complian if you say 60 days and it closes in 30, but the other way around looks bad. You only have to think this has a 50/50 chance of closing for this to be a good investment at todays price and I believe we are more in teh 80-90% range.