According to information procured exclusively by Benzinga ahead of an official announcement, global psychedelics company Silo Wellness Inc. (OTCQB:SILFF) (CSE:SILO) (FSE: 3K7A) is acquiring Dyscovry Science Ltd., a Toronto-based biotech company focused on biosynthetic manufacturing of psilocybin and its derivatives targeting irritable bowel syndrome.
Per terms of the deal, Silo will acquire 100% of the issued and outstanding shares of Dyscovry in exchange for 12,762,325 common shares in the capital of Silo, representing a total of 49% of the issued shares post-closing of the transaction. The payment shares issued to Dyscovry will be subject to restrictions on resale for a period of 36 months from the closing of the acquisition and will be released on a schedule consistent with the release schedule for an “emerging issuer” prescribed by section 4.3 of National Policy 46-201- Escrow for Initial Public Offerings.
Once the transaction is closed, Dyscovry will have the right to immediately nominate one director to Silo's board of directors. In turn, Silo will pay approximately CAD$120,000 of Dyscovry founder’s debt in twelve equal monthly installments.
An In With The Government
Dyscovry is currently collaborating with the Canadian government's research laboratories, seeking to develop a biotechnological process for producing psilocybin and its potentially novel molecule derivatives.
With this acquisition, Silo affirms its commitment to the psychedelic pharmaceutical space and expects to add pharmaceutical R&D capabilities to its patent-pending metered-dosing formulations for psilocybin, DMT, mescaline and 5-MeO-DMT. It will also leverage new assets to improve its psychedelic retreats experience and use its expertise to unlock the value of its strategic portfolio.
“We are joining two teams that share a passion and vision for developing differentiated psychedelic healing therapies that advance science and transform the lives of patients. I look forward to all that we intend to accomplish together as a combined organization,” said Brad Dottin, founder and president of Dyscovry.
“With Dyscovry’s collaborative partnerships with Canadian federal government research institutions, a Canadian Council on Animal Care (CCAC) certified university facility for animal studies, and an Ontario-based DEL facility for pre-clinical research, this merger will further enhance Silo’s platform for continued growth by adding R&D capability and a team with early-stage research, translational and clinical development capabilities along with deep-rooted scientific knowledge in Irritable Bowel Syndrome (IBS) and severe inflammatory diseases.”
Adding to these comments, Silo founder and CEO Mike Arnold, an Oregon lawyer, said, “The Dyscovry transaction has been highly anticipated by our shareholder base and a long time coming… As I have gotten to know the Dyscovry team over the last year, I have seen potential synergies far beyond what is within the four corners of the Dyscovry portfolio. I am thrilled to bring our networks together to add value to what we have built in Jamaica and intend to build in our home state of Oregon.”
Photo: geralt, sergeitokmakov by Pixabay
