LOVE Pharma Co. (CSE:LUV) (FSE:G1Q0) updated details on the proposed Microdoz Therapy acquisition, whereby Microdoz has engaged exclusively with researchers at Johns Hopkins University, to conduct a landmark study into the potential of psilocybin assisted treatment of cannabis use disorder.
The company noted that it is looking forward to working with the university and research experts on the study and, ultimately, licensing and commercializing the intellectual property developed by the landmark study.
"This is a significant opportunity to develop treatments with efficacy for people who are today subject to cannabis use disorder and those who will become subject to it in the future," said Zach Stadnyk, Love Pharma CEO.
"The U.S. cannabis industry is forecast to surpass $41 billion by 2025, and the National Institute on Drug Abuse has released research suggesting 9% - 30% of people using cannabis may develop cannabis use disorder, so we see an opportunity where Love can help people facing this disorder along with our research partners, while at the same time developing a lucrative market for treatment that will benefit our shareholders."
Through the planned acquisition of Microdoz, partnering with the university to conduct this comprehensive study relating to the potential of psilocybin assisted treatment for cannabis use disorder will help to establish consumer confidence and guide the development and use of psilocybin product development and application. As a result, LOVE will continue to develop innovative products that establish new consumer applications.
Terms of the Deal
- $1 million CAD (US $789,000) payable in common shares of the company subject to certain escrow provisions pegged to milestone achievements at a deemed price of $0.05 per share
- 50% payable at closing of the definitive agreement, which is anticipated to close in 14 days, subject to final due diligence
- Remaining 50% will be paid in four equal tranches over a 2-year period subject to the successful completion of certain milestones
This acquisition is subject to final due diligence and it is anticipated to close in the coming weeks, for which there is no guarantee.
In addition, pursuant to the company's stock option plan, the company has issued 3 million inventive stock options to consultants of the issuer exercisable at a price of $0.05 per share for a period of five years, vesting immediately.
