- Medicinal cannabis player Creso Pharma (CPH) is set to acquire Halucenex Life Sciences, a Canadian psychedelics treatment company
- Under the proposed buy, Creso will purchase the life sciences developer for a mixture of cash and shares in its bid to enter the emerging medicinal psychedelics market
- Halucenex operates as a medical treatment facility and controlled substances laboratory in Nova Scotia and is currently awaiting licensing to possess and conduct research with psilocybin, LSD and MDMA
- Creso has described the buy as "transformational" and affirms public policy towards psychedelics is rapidly shifting
- Following today's deal, shares in Creso Pharma have opened Monday's trading session up 4.76 per cent trading at 21 cents each
Medicinal cannabis player Creso Pharma (CPH) is set to acquire Halucenex Life Sciences, a Canadian psychedelics treatment company.
Creso has signed an agreement to buy the life sciences developer, which is geared towards researching and developing psychedelic treatments for mental illnesses such as post-traumatic stress disorder (PTSD) and depression.
The proposed buy has been described as "transformational" by Creso and is hoped to grant the company entry to the emerging psychedelics medicines market, which it estimates to be worth up to US$100 billion (roughly A$128.5 billion).
According to CPH, it's a move that could also see the debut of the first 100 per cent-owned psychedelic medicines company listed on the ASX, should the buy go ahead.
Halucenex operates a medical treatment facility in Nova Scotia, Canada, which comes equipped with a controlled substances laboratory and 18 treatment rooms for psychedelic-assisted psychotherapy.
Upon receipt of its Controlled Drugs and Substances Dealer's licence, Halucenex will be permitted to possess and conduct research and development on psychedelic molecules including psilocybin, LSD and MDMA.
Halucenex has emphasised a particular focus on synthetic psilocybin — the active ingredient in magic mushrooms — which is tipped to have considerable evidence-based mental health benefits, according to CPH.
Consideration for the acquisition will be a mixture of both cash and shares. Creso will need to front $500,000 in cash and issue 29.2 million CPH shares under the deal, with an extra 17.5 million CPH shares to be issued once the licence is granted.
Commenting on the deal, Creso’s Strategic Advisor Bruce Linton said public policy towards psychedelics is rapidly shifting.
"We are witnessing a massive regulatory wave which will change the way that mental health disorders are treated," he commented.
"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," he concluded.
Following today's deal, shares in Creso Pharma have opened Monday's trading session up 4.76 per cent trading at 21 cents each at 11:01 am AEDT.