Albert Labs, a privately held psychedelic drug developer, signed a letter of intent (LOI) on January 5 to be acquired by ME Resource Corp (CSE:MEC) (OTC:MEEXF), the latter company announced.
The LOI is expected to constitute a reverse takeover of MEC by Albert Labs, whereby security holders of Albert become security holders of the new combined entity. Currently, more than 63.6 million common shares of MEC are issued and outstanding, and the plan is to undergo a 10:1 share consolidation as part of the business combination. This would result in roughly 6.3 million shares issued and outstanding.
Additionally, MEC has entered into debt settlement agreements and will issue a total of 3.2 million shares at a price of C$0.50 per share to satisfy its debt. The company also said it expects 37 million post-consolidation shares to be issued to Albert shareholders. That would mean a total of 48.6 million common shares, of which Albert security holders would own 80%.
In connection with the proposed transaction, Albert plans to undertake an equity financing raising as much as C$4 million by offering shares at a price of C$0.25.
Following the combination, the entity plans to continue Albert Labs’ work under the new name Albert Labs Inc. That work involves building IP and expertise around accelerated, real-world evidence (RWE) studies and leveraging those studies to improve patient access to psychedelic-assisted therapies through accelerated regulatory approval pathways across Europe.
Albert will be the first psychedelics company to use the RWE accelerated pathway to swiftly provide access to patients in need, the company said, and it will own the study data to improve and protect its psychedelic-based therapies.
The company’s core focus is treating patients with urgent and unmet needs, starting with cancer-related anxiety through trials in the UK and Scandinavia.
“I believe that we have a real opportunity here, to provide solutions for patients with urgent and unmet needs," Albert Labs Chief Communications Officer Barney Neal. "Let’s not forget, patients struggling with cancer-related anxiety are arguably suffering the most in society and too often they go untreated. Here at Albert Labs, we believe our strategy to use real-world evidence can accelerate access and truly offer hope to millions of patients worldwide.”
Albert said it has submitted applications for psychedelic research and a dealer’s license which would allow the company to test, possess, buy and sell MDMA, psilocybin, psilocin, DMT and mescaline in its lab in British Columbia, Canada. The Health Canada licenses will also allow the company to import/export, test and conduct R&D on these controlled substances.
Overall, the company has an asset-light business model and leverages existing clinical infrastructure and patient pools through collaboration with research institutions, medical centers and reimbursement networks. The plan is to scale these collaborations in the UK and across Europe to rapidly generate revenue and ensure research is published, which in turn attracts more funding and provides patients with faster access to treatment.
—Updated to include comments from Albert Labs' CCO—
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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