Therapix - Out With The Old, In With The New

TM editors' note: This article discusses a penny stock and/or microcap. Such stocks are easily manipulated; do your own careful due diligence.

It has been a hard year for Therapix (TRPX) investors who continue to suffer due to a rapid decrease in share price, from $2.7 to less than $0.7 today. It is hard to imagine that only five years ago the share price was $8.

If anyone has related the steep decrease in the share price to recent COVID-19 crisis, it is not the case. A series of management failures has led the company, which continues to maintain great potential, to its current bottom. 

As veteran capital market investors, we believe that under the right management, Therapix would not have reached its current state. This belief drove us to act and call for an immediate general meeting of the shareholders of Therapix Biosciences and subsequently the dismissal of all members of the board.

In the letter, our company, Pure Capital, detailed previous actions which we believe have been harmful to shareholders. These actions, taken by Therapix Biosciences, have not been in the best interest of the company nor its shareholders, including capital raises under unfavorable terms. In addition, the current management has rejected two great acquisition offers, one of them at a price of $13 a share.

We demanded that until the special general meeting, the company will not take any action not in the ordinary course of business, including, without limitation, any dispositions of its assets, or securities offerings, whether public nor private. In addition, we demanded that the board of directors of the Company shall not appoint any additional directors to the Company’s board of directors prior to the special general meeting.

Although the company operates in an extremely attractive field (medical cannabis) and owns a wide clinical pipeline, the management cannot seem to create proper value and gain investor's confidence

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.