Love Pharma (CSE:LUV) Inc said it has completed its acquisition of MicroDoz Theraphy Inc, which has an exclusive partnership and license with Johns Hopkins University to conduct a landmark study into the potential of psilocybin-assisted treatment of cannabis use disorder.
Under the terms of the share exchange agreement entered into between the company, MicroDoz and the shareholders of MicroDoz, Love Pharma (CSE:LUV) will issue a total of 20,000,000 shares on a pro-rata basis at a deemed price of C$0.05 per share for aggregate proceeds of C$1,000,000, representing a discount to the $0.01 share price of the company as of today.
"This is a milestone achievement for the company to now be working in partnership with researchers at Johns Hopkins, the world's leading institution for psychedelic research, developing therapies for mental health disorders,” Love Pharma CEO Zach Stadnyk said in a statement.
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The Vancouver-based Love Pharma said it has issued 10,000,000 shares to the MicroDoz shareholders upon completion of the acquisition, while the remaining 10,000,000 shares are subject to the fulfilment of certain milestones over the next two years.
In the event that the milestones are not met, the company said it will have no obligation to issue any further shares and the total aggregate consideration for MicroDoz will be reduced accordingly.
“We look forward to updating our shareholders and stakeholders as we achieve landmarks throughout this two-year partnership and ultimately, commercialize the potential findings," Stadnyk said.
All shares issued as part of the acquisition will be subject to a resale restricted period of four months from the date of issuance and will bear a restrictive legend to this effect, Love Pharma said.
"We are very pleased to finalize this transaction and join forces with Love Pharma,” said Lucas Corrubia, co-founder of Microdoz. “We believe the combination of these two companies represents an exciting synergy in the promotion of mental wellness and development of novel therapies for mental health disorders."
Love Pharma focuses on the sexual health and wellness markets. It aims to bring to market innovative products that enhance sexual health and wellness while providing an improved quality of life.
The company holds exclusive licences to produce market, package, sell and distribute patent-protected therapeutic and pharmaceutical products throughout Europe, the United Kingdom and North America.
Contact the author at jon.hopkins@proactiveinvestors.com