Skye Bioscience and Redx Pharma to merge

US metabolic health company Skye Bioscience (Nasdaq: SKYE) and Redx Pharma, a UK based, privately-held clinical-stage biotechnology company focused on developing novel, small molecule, targeted medicines for fibrotic disease, have entered into a definitive transaction agreement. Skye’s shares were down 12.5% at $0.47 by mid-morning following the announcement.

Under the Transaction Agreement, Skye will acquire the entire issued share capital of Redx via a scheme of arrangement under Part 26 of the UK Companies Act 2006. On completion of the transaction, the combined company will be led by Redx’s current management team and board of directors, plans to operate under the name Fibrx Therapeutics and trade on the Nasdaq.