TEL AVIV, Israel, Nov. 27, 2018 /PRNewswire/ -- Therapix
Biosciences Ltd. ("Therapix" or the "Company") (NASDAQ: TRPX) a specialty, clinical-stage pharmaceutical company
focusing on the development of cannabinoid-based treatments, announces that the Company has entered into a securities purchase
agreement in a private placement with YA II PN Ltd. (the "Investor"), a fund managed by Yorkville Advisors
Global, for up to $2.5 million in principal amount of unsecured convertible debentures (the
"Debentures"). Interest on the Debentures will accrue at a rate of 5% per annum and is payable upon the maturity
date of the Debentures, being 12 months from the issuance of each Debenture. The first tranche of $1.5 million of the Debentures was issued on November 23, 2018 and the Investor
will receive 9,171 ADSs of the Company as a commitment fee. Two other tranches of $500,000 each of
the Debentures shall be purchased by the Investor conditional on the passage of time and/or certain triggering events, including,
among others, the earlier of the termination of the previously announced acquisition of the Company by FSD Pharma Inc. and
March 1, 2019. The Company shall pay the Investor additional commitment fees upon issuance of each
such tranche, to be paid at the Company's option in cash or ADSs of the Company.
From and after the date of issue of the Debentures, the outstanding principal, together with accrued and unpaid interest, will
be convertible, at the option of the holder, into ADSs of the Company at the lower of $7.00 or 95%
of the lowest daily VWAP during the 5 consecutive trading days immediately preceding the conversion date.
In addition, upon the consummation of the previously announced acquisition of the Company by FSD Pharma Inc., the Debentures
will automatically convert into shares of FSD Pharma Inc. as if the Debentures had previously been converted into ADSs at
$7.00 per ADS. The Investor has agreed to vote all ordinary shares (including those underlying
ADSs) that it holds as of an applicable record date in favour of the acquisition of the Company by FSD Pharma Inc.
Provided that the ADSs are trading below $7.00 per ADS, the Company has the right to redeem the
Debentures at 110% of the principal amount of the Debentures plus accrued interest.
The Investor has certain registration rights relating to the ADSs to be issued upon conversion of the Debentures.
The Company intends to use the proceeds of the issuance of the Debentures to continue its pipeline development programs and
for ongoing corporate purposes.
The Debentures and the ordinary shares issuable on conversion thereof have not been registered under the U.S. Securities Act
of 1933, as amended (the "Securities Act") or any state securities law. Accordingly, the securities may not be
offered or sold in the United States except pursuant to an effective registration statement or
an applicable exemption from the registration requirements of the Securities Act and applicable state laws. The Company has
granted the holder of the Debenture registration rights requiring the Company to register the ADSs of the company issuable upon
conversion of the Debenture shall be deposited under the Securities Act and applicable state securities laws.
About Therapix Biosciences (Nasdaq: TRPX):
Therapix Biosciences Ltd. is a specialty clinical-stage pharmaceutical company led by an experienced team of Senior
Executives and Scientists. Its focus is creating and enhancing a portfolio of technologies and assets based on cannabinoid
pharmaceuticals. With this focus, the company is currently engaged in the following drug development programs based on
repurposing an FDA-approved cannabinoid (Dronabinol): THX-110 for the treatment of Tourette syndrome (TS), for the treatment of
Obstructive Sleep Apnea (OSA), and the treatment of Pain; THX-130 for the treatment of Mild Cognitive Impairment (MCI) and
Traumatic Brain Injury (TBI); THX-150 for the treatment of infectious diseases; and THX-160 for the treatment of pain. Please
visit our website for more information at www.therapixbio.com.
Forward Looking Statements:
This press release contains forward-looking statements within the meaning of the "safe harbor" provisions of the
Private Securities Litigation Reform Act of 1995 and other Federal securities laws. Because such statements deal with future
events and are based on Therapix's current expectations, they are subject to various risks and uncertainties and actual results,
performance or achievements of Therapix could differ materially from those described in or implied by the statements in this
press release. For example, forward-looking statements in this press release include statements regarding the proposed FSD
transaction. The forward-looking statements contained or implied in this press release are subject to other risks and
uncertainties, including those discussed under the heading "Risk Factors" in Therapix Biosciences Ltd.'s Annual Report on Form
20-F filed with the U.S. Securities and Exchange Commission ("SEC") on April 30, 2018 and in
subsequent filings with the SEC. Except as otherwise required by law, Therapix disclaims any intention or obligation to update or
revise any forward-looking statements, which speak only as of the date they were made, whether as a result of new information,
future events or circumstances or otherwise.
Investor Contact:
Oz Adler, CFO
Oz@therapixbio.com
Tel: +972-3-6167055
info@therapixbio.com
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SOURCE Therapix Biosciences Ltd