Enveric Biosciences (NASDAQ:ENVB, FRA:SLZ) Inc announced it has closed the acquisition of MagicMed Industries Inc, a Canadian biotechnology firm with a library of novel derivative psychedelics molecules known as the Psybrary.
The all-stock transaction sees MagicMed’s CEO Joseph Tucker taking on the CEO role at Enveric, with former Enveric CEO David Johnson becoming executive chairman.
Under the term sheet to acquire privately-held MagicMed, Enveric issued MagicMed shareholders an aggregate of 9,951,237 Enveric shares.
READ: MagicMed bidder Enveric Biosciences issues letter to shareholders ahead of merger
Following the deal, existing Enveric shareholders own around 68.3% of the combined company's stock and previous MagicMed shareholders own around 31.7%.
Enveric also received about C$4 million in cash from MagicMed as part of the closing of the transaction.
In a statement, Enveric told investors that the firm plans to “immediately accelerate” the development of a novel psychedelic molecule for cancer-related distress.
"Enveric is a biotechnology company with the platform to create intellectual property for the next generation of mental health treatments to fight a global crisis,” Tucker said.
“With both psychedelic derived molecules and cannabinoids, we have a robust pipeline to take us from discovery through clinical development. Our platform has the potential to disrupt and unlock much-needed mental health treatments through psychedelic therapies.”
Johnson added: “From the onset of meeting Dr. Tucker and the MagicMed team, I have been impressed by what they have accomplished, most notably their library of intellectual property for next-generation psychedelic molecules. These assets combined with our existing Enveric pipeline opens the door for multiple treatment opportunities to a large patient population.”
Enveric is a Naples, Florida-based biotechnology company focused on mental health and cancer treatment.
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