- Little Green Pharma (ASX:LGP) is launching a psychedelic mental health treatment facility in WA
- The company kicked off a prospectus offer for the company overseeing that initiative, Reset Mind Sciences
- LGP’s existing shareholders will be issued one Reset share for every 30 LGP shares held
- RMS will not be listed on the ASX at this stage
- Shares last traded at 12.8 cents
Little Green Pharma (ASX:LGP) has announced that the prospectus offer for its psychedelic treatment subsidiary Reset Mind Sciences (RMS) has officially launched.
Under the offer, LGP shareholders will be offered the first opportunity to invest in RMS.
“The demerger of Reset from LGP and associated capital raising will … [allow us] to advance the development of mental health treatment using psychedelic medicines,” RMS Independent Non-Executive Director Cheryl Edwardes AM wrote.
“Shares in the company [are offered] to eligible LGP shareholders by way of a pro-rata in-specie distribution, on the basis of one Reset share for approximately every 30 LGP shares held on the In-specie record date.”
Ms Edwardes outlined the prospectus is intended to give participating shareholders, already on LGP’s books, an equivalent stake in RMS.
What is RMS doing?
RMS is going to oversee the establishment of a WA-based mental health clinic using psilocybin in a bid to treat mental health conditions.
Psilocybin is widely accepted to have evolved as a way for mushrooms to protect themselves against insects, by disorientating them and confusing them such that they are unable to feast on the stationary mushroom.
In other words, psilocybin-containing mushrooms evolved to make their predators “trip out”.
And in true human nature, it is this experience that members of our species have sought out for longer than we’ve had writing.
The psychedelic experience is, in fact, nature’s pest repellent.
And there’s no shortage of evidence that the drugs can be beneficial.
Australia’s Black Dog Institute, for one, has its eye on the emerging field of research.
What’s the idea, here?
The general sentiment among true believers is that psychedelic experiences cause people to look inwardly and reflect on their behaviour and actions.
There’s a lot of evidence supporting the notion that psychedelic drugs can help mitigate the psychological basis of alcoholism.
Much of the touted benefits of using these drugs for therapeutic purposes tend to come from users themselves, but the possibility continues to tantalise researchers the world over.
Earlier this year, Canberra allowed mushrooms and ecstasy chemical MDMA to be used for therapeutic purposes.
Rightly, not without miles of red tape. But RMS sees a chance to validate the science.
The company will produce an economic study supporting its mission and “inform potential future health insurance coverage.”
In short: RMS are hoping to get in on the ground floor of the much-talked-about field of psychedelic therapy.
LGP is not intending to list RMS on the share market at this stage.
LGP shares last traded at 12.8 cents.