Jul. 23 at 12:39 AM
$CBRG Chain Bridge I to acquire Phytanix Bio
Phytanix Bio, an innovative pharmaceutical company dedicated to the development of therapeutics based on cannabinoid and cannabinoid-like molecules, and Chain Bridge I, a special purpose acquisition company formed for the purpose of acquiring or merging with one or more businesses, announced they have entered into a definitive business combination agreement. Upon closing of the transaction, expected to occur in the fourth quarter of 2024, the combined company will be named Phytanix Inc., and its common stock is expected to be listed on the Nasdaq Capital Market under the ticker symbol "PHYX."
Upon the closing of the business combination, and assuming no redemptions of shares of CBRG by its public stockholders, Phytanix would expect to receive up to
$11 million of cash held in Trust. The business combination is not subject to a minimum cash condition. The parties intend to seek to raise additional convertible preferred stock in the months following the signing of the business combination agreement and will continue to seek to secure such additional financing over time. The Boards of Directors of both Phytanix Bio and CBRG have unanimously approved the proposed transaction, including a separate vote by CBRG's independent directors.
The transaction is expected to be completed in the fourth quarter of 2024, pending approval from both CBRG and Phytanix Bio shareholders. Details regarding the composition of the new company's board, governance, and other relevant information will be disclosed in due course. The transaction reflects a pre-deal valuation of
$58 million for Phytanix Bio plus the assumption of
$17 million of preferred stock and
$4.4 million of short-term debt that will be exchanged for convertible preferred stock at deal close.
