Verrian’s focus is to treat patients suffering from addition through the microdosing of psilocybin
Corp () (OTCMKTS:PEMTF) told shareholders Wednesday that it has signed a letter of intent to acquire German psychedelic medicine company Verrian Ontario Ltd in a proposed deal worth C$21.1 million.
Verrian owns and operates an EU-GMP, ISO 14001 compliant 110,000 square foot facility in Radebuel, Germany that was a former pharmaceutical manufacturing centre. The company develops products related to addition reduction.
Verrian’s focus is to treat patients suffering from addition through the microdosing of psilocybin, a naturally occurring psychedelic compound produced by more than 200 species of mushrooms.
READ: Mota Ventures posts record 39% jump in revenue in April driven by demand for natural health solutions
The firm’s facility is estimated to be worth around C$10.6 million, including an analytical laboratory and a full pharmaceutical manufacturing suite, Mota told shareholders. In addition, Verrian invested around C$2.4 million into clinical trial design and developing proprietary formulations of its patented PSI-GEN psilocybin formulations and cannabis products.
“I am extremely excited at the opportunity to acquire an established psychedelic medicine company in Europe,” Mota’s CEO Ryan Hoggan told investors in a statement.
“As an innovative company, Mota always seeks to be a leader in the natural health space and we see the psychedelic medicine market becoming a major part of the industry. This acquisition allows us to have first mover advantage in the psychedelic market, and Mota’s existing distribution network will be ready to capitalize on the opportunity once regulation has been put in place.”
Under the terms of the proposed transaction, Mota would acquire all of privately-held Verrian’s shares for C$21.1 million, of which C$20 million would be comprised of Mota shares. The balance would be payable in cash.
Mota Ventures is an ecommerce, direct to consumer provider of a wide range of CBD products in the United States and Europe.
Contact Angela at [email protected]
Follow her on Twitter @AHarmantas