Mydecine Innovations Group has signed a non-binding letter of intent to acquire NeuroPharm, a Canadian healthcare company, for around USD 6.00 million.
The buyer is paying common shares in the capital of the company at a price of USD 0.90 apiece, as well as also offering a finder’s fee on the purchase.
Completion remains subject to a number of conditions, including a definitive agreement, due diligence and receipt of regulatory approvals.
However, there can be no guarantee the acquisition will be closed as proposed.
Mydecine and Neuropharm will combine to focus on an integrated health and wellness research strategy and development of products to assist veterans with mental health issues.
The target is focused on developing unique pharmaceutical and natural health products for veteran wellness, with a specific focus on the use of psilocybin.
Psilocybin is a naturally occurring psychedelic compound produced by more than 200 species of mushrooms, which once injected is rapid metabolised to psilocin, which then acts on serotonin receptors in the brain.
NeuroPharm has developed a technology to treat various mental health conditions that are frequently experienced by war veterans such as PTSD, depression, addiction and anxiety.
Preliminary studies from institutions such as the Imperial College of London, University of Zurich and Johns Hopkins, suggests that psilocybin-assisted therapy could be a revolutionary treatment for depression and addiction.
Mydecine is the parent company operating innovative product divisions in the naturally sourced therapies space, while controlling a variety of Psilocybin and hemp-derived cannabidiol brands that design, manufacture and distribute cutting edge products.
Pharmaceutical and medicine manufacturers have been targeted in 976 deals announced worldwide in 2020 to date, according to Zephyr, the M&A database published by Bureau van Dijk.
In the largest of these, Sanofi completed a minority stake sale in Regeneron Pharmaceuticals for USD 6.70 billion.
Yunnan Baiyao Group, Shenzhen Kangtai Biological Products and Bayer, among others, have also been targeted in 2020.
© Zephus Ltd