Love Pharma Inc (CSE:LUV) has announced a strategic move to sell Microdoz Therapy Inc as part of its ongoing efforts to optimize its portfolio and focus primarily on pharmaceutical and biotechnology ventures.
The company said it sold the wholly-owned subsidiary to an arms' length third-party purchaser for C$100,000 through a note payable to Love in 12 months. It will retain the right, but not the obligation, to purchase Microdoz back and participate in its future success subject to market conditions, it added.
The disposal will allow it to redeploy its resources and capital towards areas of growth and innovation, while Microdoz will have the opportunity to pursue its own growth strategy under new ownership, the company added.
"We believe that this is a win-win situation for both Microdoz and Love Pharma," Love Pharma CEO Zachary Stadnyk said in a statement. "This divestment will enable us to sharpen our focus and accelerate our growth in key markets, while Microdoz will have the chance to thrive under new leadership and direction as it awaits licensing requirements to commence its clinical research."
READ: Love Pharma says Naltrexone demonstrates 'promising' long COVID application; completes Doc Hygiene acquisition
Love Pharma said the divestment is part of the company’s ongoing efforts to optimize its portfolio and enhance shareholder value, adding that over the past few years it has made significant investments in research and development, as well as acquisitions and partnerships, to expand its capabilities and reach.
By divesting Microdoz from its portfolio, the company advised that it is not working with psilocybin in any capacity.
"We are confident that this divestment will create value for both Microdoz and Love, as well as for our customers and shareholders," added Stadnyk. "We look forward to continuing to deliver on our growth strategy and creating long-term value for all stakeholders as we move into 2023.”
The company said it will continue to provide support to Microdoz during the transition period to ensure a smooth and seamless process and provide further updates in due course.
Love Pharma was founded in 2020, with a mission to bring to market innovative products that enhance sexual health and wellness while providing an improved quality of life. The company holds exclusive licenses to produce market, package, sell, and distribute patent-protected therapeutic and pharmaceutical products throughout Europe, the UK, and North America.
Contact the author at stephen.gunnion@proactiveinvestors.com