NEW YORK: Over the course of the past decade, several universities and research institutes have published breakthrough findings from studies conducted on the usefulness and applications of psychedelic compounds.
The naturally occurring psychedelic prodrug compound psilocybin, which is produced by more than 200 species of mushrooms, collectively known as psilocybin mushrooms. Psychedelic products may take on a similar path to the legalization of cannabis in recent times, and finally breaking free of their stigmas.
Rick Doblin, Ph.D., Founder and Executive Director of the Multidisciplinary Association for Psychedelic Studies (MAPS), explained according to an article by Forbes that the new psychedelic industry will need to focus on public benefit as well as profit in order to avoid a cultural backlash against these historically misunderstood substances.
In the United States alone, the psychedelic drugs market is projected to reach a value of USD 6,859.95 Million by 2027 from USD 2,077.90 Million in 2019 while growing at a CAGR of 16.3% during the forecast period of 2020 to 2027, according to Data Bridge Market Research. Newleaf Brands Inc. (OTC NLBIF) (CSE NLB), Mind Medicine (MindMed) Inc. (OTC MMEDF) (NEO MMED), Seelos Therapeutics, Inc. (NASDAQ SEEL), yadic International, Inc. (NASDAQ DYAI), Champignon Brands Inc. (OTC SHRMF) (CSE SHRM).
Even though the psychedelic drugs market is still only in infancy stage, a few announcements have already been made regarding the use of such products. For example, on March 2019, the FDA approved the first ketamine based psychedelic medicine from Johnston & Johnston to treat depression, called Spravato. Additionally, in May 2019, Colorado became the first state to decriminalize Magic Mushrooms (Psilocybin), taking a similar path to the legalization of marijuana. Then, in November 2019, the FDA awarded the second Breakthrough Therapy designation to non-profit Usona Institute, which is also studying the effects of psilocybin as an anti-depressant. Another indicator that psychedelic's medicinal properties are getting attention is the existence of psychedelic therapy centers. For example, this March, New York City witnessed the debut of its first legal, upscale guided psychedelic therapy center. According to a report by Forbes, the new Mindbloom center offers science-backed, clinician-prescribed, guided ketamine therapy in a spa-like setting, for USD 150 to USD 250 per session.
Newleaf Brands Inc. (OTC NLBIF) (CSE NLB) announced that it, wishes to clarify the terms of its definitive agreement (the Agreement) to acquire Mydecine Group (Mydecine), a Colorado headquartered company, which was announced on April 30, 2020.
Mydecine is a vertically integrated company engaged to utilize the vast medicinal, health and wellness capabilities of the plethora of compounds found in various strains of mushroom and fungi as a whole. The Company, through its three wholly-owned divisions, Mydecine Farms, Mydecine Wellness, and Mydecine Labs aims to be an industry pioneer in the cultivation, processing, product development, and research and development of the many beneficial and exciting compounds that are found in various strains of mushroom and fungi from all around the world.
The Company has entered into the Agreement to acquire 100% of the issued and outstanding share capital of Mydecine, (the Acquisition). Pursuant to the Agreement, the Company will purchase 100% of the issued and outstanding share capital of Mydecine in exchange for 17,000,000 common shares in the capital of the Company (the Shares) at a deemed value of $0.071 per Share representing, in the aggregate, 30.9% of the issued and outstanding Common Shares on a non-diluted and partially diluted basis for an aggregate gross proceeds of $1,207,000 CAD ($850,000 USD). The transaction won't constitute a change of control. The Company paid a finder's fee of 1,360,000 Shares in the capital of the Company at a deemed price of $0.071 per share to a qualified arms' length third party in connection with the closing of the Acquisition.
In connection, and as part of the Acquisition, 3063625 Nova Scotia Ltd. of Halifax, Nova Scotia will acquire 11,500,000 common shares at a deemed value of $0.071 per Share of the Company (the Common Shares), representing, in the aggregate, 20.9% of the issued and outstanding Common Shares on a non-diluted and partially diluted basis. Prior to the Acquisition, 3063625 Nova Scotia Ltd. did not beneficially own, or exercise control or direction over, any securities of the Company. 3063625 Nova Scotia Ltd. is acquiring these securities for investment purposes and may, from time to time, acquire additional securities of the Company or dispose of such securities as 3063625 Nova Scotia Ltd. may deem appropriate.
A copy of the early warning report that will be filed by 3063625 Nova Scotia Ltd. may be obtained on the Company's SEDAR profile or by contacting the Company.
To learn more about Mydecine please visit the company's website at www.mydecine.com
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