Mydecine Innovations Group Inc. (CSE: MYCO) (OTC: MYCOF) has entered into an agreement to buy Canadian-based NeuroPharm Inc. in a deal valued at roughly $6.3 million. NueroPharm is a developer of natural psychedelic-based treatments for mental health disorders. Mydecine recently signed an agreement with Applied Pharmaceutical Innovation (API), a translational commercial drug institute at the University of Alberta’s Faculty of Pharmacy and Pharmaceutical Sciences as it makes fast progress in the psilocybin world.
Colonel (Ret’d) Pucci, CEO of NeuroPharm said, “Our mission is to develop and bring to market treatments addressing the mental health conditions frequently experienced by veterans, including PTSD, depression, and anxiety. We understand the unique circumstances of the veteran community and are devoted to treating these substantial unmet needs. Our collaborative partnership with Mydecine will accelerate our ability to address the enormous challenge of restoring the overall wellness in the veteran, EMS and frontline personnel communities.”
NeuroPharm said in a statement that it is focused on developing unique and proprietary technologies to treat various mental health conditions frequently experienced by veterans and frontline workers such as PTSD, depression, addiction, anxiety, and panic disorders as well as migraine and cluster headaches. The team is a combination of critically acclaimed scientists and military personnel boasting extensive drug development experience and deep, embedded relationships within the Canadian and U.S. militaries.
It has also established valuable partnerships with leading research organizations in both North America and the EU, and is poised to initiate a series of unique clinical trials this summer. In conjunction with a preeminent university in the EU, NeuroPharm will be initiating veteran-based clinical trials for the treatment of PTSD with microdosed MDMA/psilocybin formulations. This inceptive trial will serve as the basis for follow-on trials conducted in Canada and the United States. NeuroPharm’s veteran focus allows for fast-track “adaptive pathways” which should significantly reduce time to market.
“According to recently published data, as many as 20 veterans on average commit suicide per day in the U.S. alone, and, to me, this is a heart-breaking staggering statistic that unfortunately is overlooked by so many. We owe everything to our veterans, EMS and frontline personnel, yet the best solutions for their long-term mental health are currently non-existent. Aligning ourselves with the amazing team at NeuroPharm affords us the ability to make a positive change,” said Josh Bartch, CEO of Mydecine.
NeuroPharm said it will oversee all areas of the product life cycle, including medical mushroom cultivation, drug delivery system development, clinical trial execution, all the way through to product commercialization. The acquisition will help establish Mydecine plant its flag in psychedelic-based therapies and research.
Mydecine will give NueroPharm $500,000 when the deal closes and has agreed to fund further capital requirements of NeuroPharm for the 18-month period following closing. Otherwise, it is an all-stock deal. Nine million common shares of Mydecine at a deemed value of $0.70 per payment share will be exchanged with some limitations. The statement said that the Payment Shares issued for seed shares of NeuroPharm shall be subject to restrictions on resale for a period of 24 months from the closing of the acquisition, and will be released in four 25% tranches. The balance of the Payment Shares issuable to NeuroPharm shareholders shall be subject to restrictions on resale for a period of 60 days from the closing of the acquisition.
Mydecine shall also issue 10 million performance warrants that will be provided to designated officers, employees, and consultants of NeuroPharm and will be paid in tranches when the following goals are met: (i) the successful completion of up to six clinical trials designed to study psilocybin in Veterans suffering from PTSD; and (ii) upon the filing by NeuroPharm of up to five patent applications in Canada and/or the United States relating to the business of NeuroPharm.