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Redx tries again at reverse merger with Skye, as alternative route gains steam

Redx Pharma is attempting another reverse merger, this time with U.S.-listed Skye Bioscience (Nasdaq: SKYE), after an earlier merger attempt with Jounce Therapeutics failed in 2023. The deal is structured as a UK scheme of arrangement in which Skye acquires all of Redx and then combines into a new Nasdaq‑listed entity called Fibrx Therapeutics, led by Redx’s current management and board. Fibrx Therapeutics will be funded with approximately $125 million in gross proceeds, including a $67.9–$72.9 million private placement (PIPE), a $36 million Redx Series A round, a $22 million equity line facility, and a $5 million warrant; this is expected to extend the combined company’s cash runway into 2029. Pre‑transaction Redx holders are expected to own about 46.17% of the combined company, pre‑transaction Skye holders about 5.38%, and new PIPE/financing investors about 48.45% on a fully diluted basis, subject to final adjustments. Skye will implement a 1‑for‑8 reverse stock split to ra...

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