Creso Pharma Ltd (ASX:CPH, OTCQB:COPHF) wholly-owned Canadian-based psychedelics company Halucenex Life Sciences Inc. has entered a binding, exclusive supply of goods agreement with Optimi Health Corp (CSE:OPTI, OTCQB:OPTHF), a Canadian company focused on producing and supplying natural, EU-GMP grade psilocybin and functional mushrooms for health and wellness markets.
The agreement has the potential to provide Halucenex with a consistent and stable supply of standardised EU-GMP grade psilocybin, while it looks to access the PTSD therapeutics sector which is expected to grow to US$10.5 billion in value by 2025.
Optimi produces scalable, natural mushroom formulations for transformational human experiences. It has a vertically integrated approach, intending to cultivate, extract, process and distribute high quality functional and psychedelic mushroom products at its two facilities totalling 20,000 square feet in Princeton, British Columbia.
How the agreement benefits Halucenex
Optimi will provide Halucenex with psilocybin-containing mushrooms, in the form of whole dried mushrooms fruiting bodies with Halucenex to first utilise the products to validate their quality and physical characteristics and then validate the mushrooms for testing and operating procedures.
For the initial purchase, the products will be provided to Halucenex free of charge with a C$1,500 (A$1,646) handling fee to be paid to Optimi.
The initial term of the agreement is one year and will automatically renew after the first year subject to terms and conditions.
Halucenex has agreed to purchase or negotiate exclusively with Optimi and grant a first right of refusal to Optimi for all forthcoming intended purchases of products.
Upon completion of testing protocols, Halucenex will negotiate with Optimi regarding future purchases.
Progressing psychedelic-assist psychotherapeutic model
Through this new batch of EU-GMP grade product, Halucenex will be able to progress the development of a psychedelic-assist psychotherapeutic model for conditions including anxiety as Post Traumatic Stress Disorder (PTSD).
Halucenex will start testing and validating protocols on the product in the coming weeks, ahead of potential product development initiatives commencing.
“This agreement is very important for Halucenex as it has the potential to provide the company with an ongoing supply of safe and standardised dried mushrooms fruiting bodies, which will be imperative for future product development and treatment initiatives,” Halucenex’s managing director Bill Fleming said.
“Optimi is an incredibly respected partner in the psychedelics sector and one of the few companies that have secured an amendment to its Health Canada’s Dealer’s Licence, allowing them to possess a large quota of dried psilocybe mushrooms. We look forward to working with them well into the future.”