Skye Bioscience has secured an equity line of credit of up to $22 million with Redmile Group affiliate Redmile Biopharma Investments III. The agreement, disclosed on 24 August 2026, forms part of the financing package for Skye's previously announced acquisition of Redx Pharma Limited. Under the terms, Skye must direct monthly purchases capped at $2 million. The purchase price per share will be the lesser of the PIPE price or market price, with a maximum 10% discount to the PIPE price. Skye will also issue Redmile a warrant to purchase shares valued at $5 million, exercisable from January 2027 through January 2030. The ELOC facility runs for three years from the PIPE closing date. The ELOC size may be reduced if funded PIPE proceeds exceed $103 million, and will be terminated entirely if they reach $125 million.

Redx Pharma to be acquired by Nasdaq-listed firm - combined group will be backed by $125m of new finance. 14 Aug 2026, 15:46 Cheshire-based biotechnology company Redx Pharma is set to be acquired by a Nasdaq-listed group, with a syndicate of new and existing healthcare institutional investors committing approximately about $125m of funds for the combined business. Skye Bioscience has entered into a definitive transaction agreement to acquire Redx, which is headquartered in Alderley Park, Macclesfield and is focused on the discovery and development of novel, small molecule, highly targeted therapeutics for the treatment of cancer and fibrotic diseases. The combined company will be led by Redx's current management team and board of directors and plans to operate under the name Fibrx Therapeutics, trading on Nasdaq. In connection with the transaction, a number of financing deals are in place which together will provide the combined company with aggregate gross proceeds of approximately $125m. Skye is entering into a securities purchase agreement with a syndicate of new and existing healthcare investors including Abingworth, British Business Bank, NEXTBio Capital and 5AM Ventures, as well as Redx's existing major shareholder, Redmile, for a private placement financing of approximately $68m. Additionally, Redx has entered into a subscription agreement for a Series A financing of $36m in gross proceeds, which was led by new Redx investor, Abingworth, and included British Business Bank and Redx's existing major shareholder, Redmile. Skye has further entered into an agreement with a fund affiliated with Redmile for a committed equity line facility of up to $22m. The combination has been approved by both boards of directors and is expected to complete in the fourth quarter of 2026.