The purchase provides Creso Pharma with entry into the emerging global market for psychedelics medicines which is estimated to be worth up to US$100 billion.
() () (FRA:1X8) has entered into a transformational agreement to buy established psychedelics company Halucenex Life Sciences Inc, which will strengthen the company’s position in Canada, as well as lead to new market entries and commercialisation opportunities.
The purchase provides Creso Pharma with entry into the emerging global market for psychedelics medicines, which is estimated to be worth up to US$100 billion.
The proposed acquisition provides Creso Pharma with a first-mover advantage into the psychedelic medicines sector and marks the first 100%-owned psychedelic medicines company listed on the ASX.
Halucenex is a life sciences development company focused on researching, developing and licencing novel psychedelic molecules for the global pharmaceutical and nutraceutical markets.
Evolution into broader-based pharmaceutical business
Creso Pharma non-executive chairman Adam Blumenthal said: “This is a major milestone for Creso Pharma and marks our evolution into a broader-based pharmaceutical business.
“Creso will now sell its trusted cannabis products and progress the commercialisation of a range of psychedelic-assisted psychotherapy treatments.
“Our entry into this market provides the company with another lucrative vertical and an additional near term revenue stream.
“Mental health and PTSD are becoming detrimental to our society and this has been highlighted in the last 12 months.
“These conditions have been exacerbated by COVID-19 and the available treatments are shown to have limited effectiveness and many side effects.
“Psychedelic-assisted therapy is a new alternative treatment route, which has considerable promise.
“The acquisition of Halucenex will strengthen our presence in Canada, as well as provide a number of opportunities in drug development, which will inevitably lead to further new market entries and commercialisation opportunities.”
Commercialisation of one of world’s first psychedelic inspired medicines
Creso Pharma’s strategic advisor Bruce Linton added: “Public policy towards psychedelics is rapidly shifting and we are witnessing a massive regulatory wave, which will change the way that mental health disorders are treated.”
Linton said: “Creso’s decision to enter the psychedelic space allow it to capitalise on its strong global partnerships, and its team’s expertise in the development of new pharmaceutical products, to accelerate commercialisation of one of the world’s first psychedelic inspired medicines.
“Following this acquisition, Creso will have the ability to provide varied combinations and outcome centric approaches that have the potential to considerably benefit individuals that are suffering from a range of debilitating illnesses.”
Halucenex founder and chief executive officer Bill Fleming said: “Halucenex is excited to be acquired by Creso and looks forward to levering its strategic relationships and expertise in the pharmaceutical industry.
“Halucenex has an early advantage in that it has applied for the Controlled Substances License, it has a laboratory for research on psychedelic compounds and a medical clinic to conduct micro and macro dose trials.”
“Our ability to design a clinical protocol and fast track a Phase 2 Treatment Resistant Depression clinical trial will allow us to be one of the first companies to demonstrate the efficacy of psilocybin in Canada.”
Key deal terms:
Creso Pharma will pay:
- $500,000 in cash;
- 29,251,795 Creso Pharma shares;
- 17,551,077 Creso Pharma performance shares that will convert into fully paid ordinary shares if the dealer’s…