Nutritional High International Inc. (CSE: EAT) said that it has completed the previously announced acquisition of Psychedelic Science Corp. In June, The company announced it was buying Kruzo LLC, a company focused on developing products and conducting research on the psychoactive cacti Peyote. Kruzo also develops other plant-based medicinal products derived from Asian herbal medicine as well as cannabis.
The company didn’t say the value of the deal, but it did plan to raise $1.5 million prior to the acquisition. The company though announced in July that it closed the offering with gross proceeds of only $1.0 million.
“The Transaction is part of our plan to continue to pivot Nutritional High’s focus to its highest-margin product categories,” said CEO John Durfy. “While we continue to develop, manufacture, and sell cannabis products, the PSC acquisition will give us a unique position in this emerging part of the plant-based wellness and medical market.”
The two companies then formed Psychedelic Science Corp. (PSC) to develop health and wellness products while performing research on the therapeutic effects of psychoactive and non-psychoactive plant-based compounds. PSC’s research as well as the initial development of products will be located in Thailand in partnership with Rangsit University (RSU).
Under its agreement with RSU, PSC is developing cultivation and extraction methodologies for cacti, mushrooms, and other plant-based compounds. Further, clinical trials are currently being designed to determine the safety and efficacy of full-plant extract from cacti for the treatment of various indications including, pain, anxiety, and depression. PSC is also working with RSU to source and develop non-psychoactive plant-based wellness products for sale in North America.
RSU is in the process of securing plant material and is expected to commence testing growth rates as compared to the levels of certain desirable alkaloids including the psychoactive compound mescaline. The company expects to cooperate with RSU to develop the commercial supply of certain psychedelic cacti for clinical use in Thailand and abroad. The company is also supporting efforts to legalize psilocybin for medical research purposes and will work with RSU, who has Asian GMP standard grow facilities, to grow various psychedelic mushrooms.
Calyx Brands Sold
Last week, the company said that it was selling Calyx Brands and NH Distribution California Inc. to a company listed as DB12 LLC. The deal was valued at $7 million and included minority ownership in the company DB12.
“Through retaining minority ownership in DB12, Nutritional High will continue to have access to the California market for distribution of our own brands, potentially significant upside associated with ownership of the larger and more integrated DB12 operation, while continuing to improve our balance sheet,” said Durfy. “We are very pleased to partner with DB12 and look forward to a successful partnership.”
Calyx is a distributor of cannabis and cannabis-derived products, which holds a Type 11 distribution license from the Bureau of Cannabis Control of the State of California, which permits the distribution of medical and adult-use cannabis, and cannabis products from manufacturers to dispensaries.
The company said in a statement that the sale of Calyx was a directive established by the company as part of the strategic review process. Through completing a sale to a strategic partner, Calyx will have access to funding and a significant source of flower products to supplement it’s product offering and profitably grow the business.