Therapix Biosciences Ltd. (TRPX) reported recently condensed consolidated financial data for the first quarter of 2019, as set forth in the table below:
Events during the first quarter
1) On March 28, 2019, the Company entered into a definitive securities purchase contract (the "Purchase Contract") with institutional investors to purchase (i) 642,853 of the Company's ADSs, representing 25,714,120 ordinary shares, at a purchase price of $3.50per ADS, in a registered direct offering (the "Registered Direct Offering"); and (ii) warrants to purchase up to 482,139 ADSs, representing 19,285,560 ordinary shares, with an exercise price of $3.50 per ADS (the "Warrants"), in a concurrent private placement (together with the Registered Direct Offering, the "Offerings"). The total gross proceeds to the Company from the Offerings were about $2.25M. The closing of the sale of the ADSs and Warrants occurred on April 1, 2019.
In addition, following a payment of about $250,000 to YA Global II SPV, LLC as part of their participation in the Purchase Contract, the outstanding debt under the Securities Purchase Contract mentioned in Note 13c of the Company's consolidated financial statements for the year ended December 31, 2018 included in the Company's YearlyReport on Form 20-F, has reduced to $1.25M.
2) On March 26, 2019, due in part to important losses incurred by Therapix Healthcare Resources, Inc. ("THR"), a subsidiary incorporated in Delaware of which the Company owns about 82.36% of its share capital, as well as THR's failure to maintain required licenses to operate its facilities, the Company's and THR's management anticipate that THR will commence a liquidation process of its assets in the near future. The liquidation of THR's remaining assets, or potential claims that may arise from the liquidation and dissolution of THR may adversely affect the Company's reputation or divert management's attention in the event of any material litigation. Accordingly, the Company recognized impairment charges in respect of its investments in THR of $1.0M at the end of the first quarter of 2019.
Events after the first quarter
1) On May 23, 2019 the Company received a written notification from the Listing Qualifications Department of The Nasdaq Capital Market ("Nasdaq") notifying the Company that Nasdaq has determined that Therapix's stockholders' equity does not comply with the minimum $2,500,000 stockholders' equity requirement for continued listing on The Nasdaq Capital Market, as set forth in Nasdaq Listing Rule 5550(b)(1). The Nasdaq notification letter provides the Company until July 5, 2019, to submit a plan to Nasdaq to regain compliance with the Nasdaq's continued listing requirements. If the plan is accepted, Nasdaq may grant an extension of up to 180 calendar days for the Company to regain compliance. The compliance plan is presently under review by Nasdaq, and the Company intends to provide an update regarding the acceptance of the plan in the near future.
2) On June 18, 2019, the Company reported interim results from its Phase IIa clinical study at Assuta Medical Center in Israel, suggesting that THX-110 positively affects symptoms in adult subjects with obstructive sleep apnea (OSA). This Phase IIa clinical study is an open label study, which includes 30 patients diagnosed with OSA, to evaluate the safety, tolerability and efficacy of once daily oral administration of THX-110.
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