Chain Bridge I to Acquire Phytanix Bio, Creating a New Public Company Focused on Developing Next Generation Cannabinoid and Cannabinoid-like Medicines

Company Overview - Phytanix Bio is a preclinical stage pharmaceutical company focused on developing therapeutics based on cannabinoid and cannabinoid-like molecules, founded by former members of GW Pharmaceuticals [1][10] - The company holds exclusive intellectual property related to cannabinoid medicines [1] Transaction Details - A definitive business combination agreement has been announced between Phytanix Bio and Chain Bridge I (CBRG), with a pre-deal valuation of $58 million for Phytanix Bio, plus $17 million in preferred stock and $4.4 million in short-term debt [1] - The transaction is expected to close in the fourth quarter of 2024, with the new company to be named Phytanix Inc. and listed on Nasdaq under the ticker "PHYX" [1][7] Leadership and Management - The combined company will be led by Barrett Evans as CEO, Colin Stott as COO, and Dominic Schiller overseeing legal and IP strategy [2] - The leadership team has extensive experience in cannabinoid-based medicine, having previously contributed to the development of Sativex® and Epidiolex® [3] Product Development Focus - Phytanix aims to develop a new generation of cannabinoid medicines targeting serious unmet medical needs, including treatment-resistant facial seizures and Painful Bladder Syndrome (PBS) [4] - The company plans to utilize botanically inspired active pharmaceutical ingredients to create new mechanisms of action and intellectual property across various therapeutic areas [3] Financial Aspects - Upon closing, Phytanix expects to receive up to $11 million in cash held in trust, with no minimum cash condition for the business combination [5] - The parties intend to seek additional financing through convertible preferred stock following the signing of the agreement [6] Regulatory and Compliance - The transaction has been unanimously approved by the Boards of Directors of both Phytanix Bio and CBRG, pending shareholder approval [7] - CBRG will file a registration statement on Form S-4 with the SEC, including a proxy statement/prospectus regarding the proposed transaction [8]