Skye Bioscience to Acquire Redx Pharma in Reverse Merger, Creating Fibrx Therapeutics

summarizeSummary

Skye Bioscience will be acquired by Redx Pharma in a reverse merger, leaving Skye shareholders with only 5.38% of the combined company. The deal includes $103.9 million in new financing and a 1-for-8 reverse stock split.

check_boxKey Events · M&A and Partnerships · SKYE

• Reverse Merger with Redx Pharma

  Skye will acquire Redx Pharma via a UK scheme of arrangement, but Redx equityholders will own 46.17% of the combined company versus only 5.38% for Skye's legacy shareholders. Redx's management team will take over leadership roles.

• Concurrent Financing of $67.9M

  Skye entered into a Securities Purchase Agreement for $67.9 million (up to $72.9 million) with accredited investors, plus a $22 million equity line facility and a $5 million warrant with Redmile Group. Redx is also raising $36 million in Series A financing.

• 1-for-8 Reverse Stock Split

  The board approved a 1-for-8 reverse stock split effective August 24, 2026, to raise the share price above $1.00 and regain Nasdaq compliance. Authorized shares will decrease from 300 million to 37.5 million.

• Legacy CVRs for Skye Shareholders

  Skye shareholders will receive contingent value rights entitling them to 90% of net proceeds from any future disposition of Skye's legacy assets, including nimacimab. There is no assurance of any payment.

auto_awesomeAnalysis · SKYE · Life Sciences

A reverse merger will leave Skye Bioscience's legacy shareholders with only 5.38% of the combined company, as Redx Pharma effectively takes control. The deal includes a $67.9 million concurrent financing, a $36 million Series A investment in Redx, and a 1-for-8 reverse stock split to regain Nasdaq compliance. Current management will resign, with Redx's team taking over. The transaction is subject to shareholder approval and is expected to close by August 2027.