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.

Author's Disclosure: Pure Capital has filed a 13D and is seeking a change in leadership at Therapix. The 13D filing may be viewed more

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Comments

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Kurt Benson 2 years ago Member's comment

@[Kfir Silverman](user:133973), so not only do you completely fail to make your case against $TRPX, but you don't even bother responding to any comments or questions. Not impressed.

Wannabe Warren 2 years ago Member's comment

Would have been nice had the author responded. I would have liked to have learned more about this. $TRPX

John Doe 2 years ago Member's comment

I would appreciate to hear more details than disclosed in this article. What was the intended acquisition? What do you believe could have been done differently to achieve success? It’s easy to use management as a scapegoat...

John Doee 2 years ago Member's comment

Thank you for this article. While other members are annoyed about it's brevity, I appreciate your tone and how straightforward you are. After this is all over and you have had your general meeting, I would be so curious to hear about the thought process, as I think everyone else would too.

Thomas Callahan 2 years ago Member's comment

I have to agree with @[Adam Reynolds](user:80020). This article says a whole lotta nothing. So the author says that management is to blame for the company's poor performance. But offers no evidence what so ever to back that up.

Sure, the management team may be to blame, but why? What mistakes did they make? He says the stock should be doing well and that the company has potential, but again doesn't say why or offer any meat to back it up. Care to elaborate @[Kfir Silverman](user:133973)?

Angry Old Lady 2 years ago Member's comment

Actually, none of that matters. The fact is that the company has lost nearly all of it's value. It doesn't matter who is to blame. The problem is that the management team failed to prevent it or generate any sort of turn around.

Susan Miller 2 years ago Member's comment

I agree that $TRPX's performance has been dismal and I clearly remember back when the stock was over $7. I think the management team must be inept to have had the company lose so much of it's value.

Wall St. Wolf 2 years ago Member's comment

I bought $TRPX at $8.60 back in March 2017 after reading a very encouraging article by @[Stone Fox Capital](user:15392). Now it's nearly worthless. One of my worst buys ever. Not Sure what Stone Fox would say about it now.

I for one would like someone to be accountable, and want to know exactly what went wrong. Unfortunately this article does not shed much light onto the situation. If management is to blame, they should be ousted. But I'm still not clear on where the blame should be placed.

Justin Vargos 2 years ago Member's comment

Out of curiosity, what was the article you saw that made you buy Therapix? Have a link?

Barry Glassman 2 years ago Member's comment

Doesn't the blame ultimately reside with those in charge?

Adam Reynolds 2 years ago Member's comment

This article doesn't actually say much. What missteps do you believe the management at #Therapix took?