Denver-based Mydecine Innovations Group Inc. (CSE: MYCO) continues to expand its fungi footprint deeper into North America.
On Tuesday, the psychedelic medicine producer said it acquired Canadian-based NeuroPharm Inc. for around $6.3 million.
NeuroPharm is currently focused on developing psychedelic-based treatments to help U.S. and Canadian veterans and frontline workers that suffer from mental health disorders like PTSD, depression, addiction, anxiety, and panic disorders as well as migraines and cluster headaches.
Mydecine said the deal gives it access to NeuroPharm’s proprietary technologies and management team of scientists and ex-military personal that have deep ties within the Canadian and U.S. militaries.
The Canadian firm is set to begin clinical trials this summer in both countries to test whether veterans with PTSD can be treated by microdosing MDMA and psilocybin, according to the press statement.
“NeuroPharm’s veteran focus allows for fast-track ‘adaptive pathways’ which should significantly reduce time to market,” Mydecine said in a statement.
The company added NeuroPharm’s military connections bolster the chances for the commercialization of psychedelic medicines.
“Our mission is to develop and bring to market treatments addressing the mental health conditions frequently experienced by veterans,” NeuroPharm CEO and retired colonel Richard Pucci said in the statement.
“Our collaborative partnership with Mydecine will accelerate our ability to address the enormous challenge of restoring the overall wellness in the veteran, EMS and frontline personnel communities.”
The deal further highlights how far psychedelic medicine has come in just over one year.
Last June, Denver became the first U.S. city to decriminalize mushrooms containing the psychedelic substance psilocybin. That precedent opened the door for Mydecine to set up its headquarters in the city where it continues to operate a 7,500 square foot psychedelic lab, the first of its type in North America.
With around 15 publicly-traded companies now in the space, many believe psychedelics are only at the beginning of a long-term growth phase — similar to where medical cannabis was about a decade ago.
In Oregon, voters could legalize therapeutic psilocybin under medical supervision this year, as the measure just qualified for the November ballot last week. That’s because organizers were able to collect well over the 112,020 signatures required by the state to put the Oregon Psilocybin Services Act on the ballot in the U.S. election held in November.
If the initiative passes, Oregon would become the first state to legalize psilocybin for medical use.
Meanwhile, in Canada the first official measure to decriminalize psychedelic plants and fungi is set to be heard in the House of Commons later this year.
Read more: First official call to decriminalize psychedelics in Canada to be heard later this year
Read more: Canada could regulate psychedelic therapy within few years, bets company
A key part of developing the new industry and new regulations is advancing research in the field of psychedelic medicine.
Mydecine recently signed an agreement with Applied Pharmaceutical Innovation, a commercial drug development institute at the University of Alberta’s Faculty of Pharmacy and Pharmaceutical Sciences. The company said the partnership gives it access to Health Canada licences held by the institute to bolster fungal research and develop a variety of psilocybin-extracted products.
As for the NeuroPharm agreement, Mydecine said it will give the company $500,000 when the deal closes and has agreed to fund further capital needs for another 18 months following closing. Otherwise, it is an all-stock deal.
Nine million common shares of Mydecine at a deemed value of $0.70 per payment share will be exchanged with some limitations, the company said.