Neural Therapeutics Inc. has provided the market with an update on its pending listing on the Canadian Securities Exchange (CSE) as the company works towards preclinical studies evaluating mescaline-derived therapies for mental health conditions.
The botanical drug development firm on May 8 announced that it had received conditional approval to list on the CSE, dependent on the completion of a private placement offering for gross proceeds of $500,000.
The company is raising the funds at $0.03 per share giving it a pre-money valuation of just under $2 million, with enough upside potential for investors as other life sciences at similar stages are trading higher.
Neural Therapeutics is focused on developing mescaline, a psychedelic compound found in the San Pedro cactus, as a potential treatment for mental health conditions, specifically targeting alcohol and opioid use disorders.
It plans to develop non-hallucinogenic drugs derived from the San Pedro cactus.
During the corporate update, Neural's CEO Ian Campbell highlighted mescaline’s unique ability to rewire the brain and regenerate missing connections, which can help address addiction.
“Mescaline shows huge promise in changing the landscape of mental illness,” Campbell told investors on Thursday. “We believe the market is ready and primed for this type of drug.”
The company has been working to achieve the required licensing in Peru, build its intellectual property portfolio, and secure an uninterrupted supply chain as it prepares to go through the clinical trial process with the US Food and Drug Administration (FDA).
“We’ve got the largest biomass of mescaline available in the world sewn up in our supply chain agreements,” Campbell highlighted.
The company’s goal is to be manufacturing a drug that is ready to go into a Phase 1 clinical trial by the end of 2024.
“We believe at this point in time, it’s a great opportunity to join a leading-edge company that’s setting a new bar for mental health and patient care,” Campbell said.