Cannabinoid-focused Enveric Biosciences announced today it is acquiring Canadian-based MagicMed Industries, a biotech company known for its novel “Psybrary” focused on derivative psychedelic molecules including psilocybin, N,N-dimethyltryptamine (DMT), has developed applications for a number of human health conditions.
Enveric says the acquisition compliments its current pipeline of naturally occurring compounds. It says it plans to continue to develop “patient-centric” support care therapies across oncology and central nervous system (CNS) indications.
Dr. Joseph Tucker, MagicMed’s current CEO will take over as CEO of Enveric Biosciences. David Johnson, Enveric’s current CEO, moves into the position of Executive Chairman.
“Our proposed acquisition of MagicMed underscores the core fundamental mission of Enveric to form a drug discovery and clinical stage biotechnology company with a focus on bringing forward nature-originated therapies to improve the standard of care and serve unmet needs in oncology and CNS indications,” Johnson said in a statement shared with Psychedelic Spotlight. “Psychedelics and cannabinoids, in our opinion, have extensive patient benefits for the mind and body. We welcome MagicMed’s world class research and development team led by Dr. Joseph Tucker, who not only have experience in psychedelic drug discovery, but also research experience in cannabinoids, as well. Patients who are currently being treated for cancer or are in remission are forced to face debilitating physical and mental side effects with very few treatment options available to alleviate their pain. PTSD, for example, is a significant unmet need for this patient population. Together, with the MagicMed team, following the closing of the acquisition, we plan to commence the discovery and development of psychedelics-derived therapies.”
Enveric will issue nearly 10 million shares of common stock to MagicMed shareholders. Under the agreement, Enveric’s current shareholders will own approximately 63.4% of the combined company’s common stock and MagicMed shareholders will own approximately 36.6% of the combined company’s common stock. Enveric also receives approximately $4 million (CAD) from the MagicMed Treasury.
“Our mission at MagicMed has always been focused on unlocking the full potential of psychedelic-derived medicines for the treatment of neurological and psychological indications,” said Tucker. “Complementing our R&D capabilities, working together with Enveric will allow us to leverage the company’s clinical team, all of whom are focused on advancing our extensive pipeline of molecules through the clinic to help serve the millions of patients who are suffering with mental health issues around the globe. Through this acquisition – in the best interest of each of our respective teams – we have bolstered our pipeline, bringing together a seasoned team of experts with the leadership skills and knowledge that is crucial to creating a platform that aims to address large unmet total addressable markets.”
