Under the terms of the agreement, Lobo Genetics will amalgamate with a newly incorporated wholly-owned subsidiary of Entheon.

Lobo comes with an experienced team of technology experts that specialize in genetics, diagnostics, and data and analytics. The company also has a fully operational genetics research and development facility in Mississauga, Ontario.

“This acquisition supports Entheon’s genetic-driven approach to developing personalized psychedelic-assisted psychotherapeutic (PAP) protocols to treat substance use disorders while providing in-house DNA data analytics, expanded assay development and genetic research capacities,” said Timothy Ko, Entheon’s CEO.

Lobo has developed a psychedelics genetic test in partnership with HaluGen Life Sciences, as well as a cannabis genetic test that can provide personalized insights into an individual’s cannabis metabolism.

John Lem, Lobo’s founder CEO, also commented on the merger.

“We are excited to join the Entheon team and leverage Lobo’s existing genetics testing platform to future applications in the psychedelics space,” he said. “Tim and his team have a bold vision of personalizing the psychedelics experience. Developing insights through genetic testing and data are a key part of that mission.”

Mr. Lem will join Entheon’s advisory board as a strategic advisor of industry affairs.

The amalgamated company will operate as a wholly-owned subsidiary of Entheon Biomedical under the name Lobo Genetics Inc. and carry on Lobo’s current business.

Entheon will issue 5 million common shares to Lobo’s shareholders.

Entheon is a biotechnology research and development company committed to developing and commercializing safe and effective DMT-based psychedelic therapeutic products for treating addiction and substance use disorders.

Entheon Biomedical Corp. (ENBI) is down 7.53 per cent, trading at $0.43 per share as of 2:00 pm ET.