- Champignon Brands (CSE:SHRM) has signed an agreement, dated March 18, to acquire Novo Formulations
- The acquisition will introduce new intellectual property to Champignon’s health and wellness portfolio
- Novo currently works with ketamine, anaesthetics and adaptogenics for the treatment of a variety of conditions
- Champignon will issue Novo 12.5 million common shares at 24.75 cents for the acquisition
- Champignon Brands (SHRM) is currently trading at C$0.33 per share, with a market cap of $13.01 million
Champignon Brands (CSE:SHRM) has signed an agreement, dated March 18, to acquire Novo Formulations.
The acquisition will bolster Champignon’s existing intellectual portfolio of medicinal mushroom-based formulations and products.
Novo Formulations is currently working with ketamine, anaesthetics and adaptogenics for the treatment of a variety of conditions.
In particular, its innovative delivery system platforms will accelerate Champignon’s efforts in becoming a first-mover within the emerging psychedelic medicine market.
The Novo team comprises PhD and technician-level scientists, each with decades of experience. While also working with an accredited pharmacy in Ontario, the team primarily works out of a purpose-built GMP and pharmaceutical licensed facility in Quebec.
Gareth Birdsall, CEO of Champignon Brands, said that the acquisition is complimentary to Champignons efforts in improving health and wellbeing.
“The existing infrastructure inherited from these recent acquisitions positions us as a leading participant throughout the entire alternative medicine lifecycle, from R&D to formulation, manufacturing and end distribution.
“The end result will be a turnkey solution that incorporates both standardized ingredient mixtures and pharmaceutical grade products that can now be marketed via a variety of proprietary delivery systems,” he added.
Champignon plans to leverage Novo’s existing infrastructure to pursue the development of psilocybin and MDMA-based formulations. It’s hoped that these products might treat depression, PTSD and substance abuse disorders.
The current market for this particular industry in North America is valued at C$10 billion annually.
Under the terms of the agreement, Champignon will issue 12.5 million common shares to Novo Formulations at a price of 24.75 cents each for the acquisition. A finders fee is also applicable to the transaction.
Champignon Brands (SHRM) is currently trading at $0.33 per share at 2:10pm EST.
