What is going on with COPHF?
Creso Pharma Limited (COPHF) stock fell today after the company announced that it is in the final stages of its proposed acquisition of Halucenex Life Sciences, a company focused on researching novel psychedelic compounds, following approval granted by shareholders at the company’s 2021 Annual General Meeting. Creso expects to complete the transaction within the next week. Shares of COPHF declined 21.3% to $0.0299 as of Friday at 9:54am.
What does this mean for Creso Pharma Limited?
Creso Pharma's acquisition of Halucenex comes before a predicted boon in the PTSD therapeutics market, which is expected to grow to $10.5 billion in value by 2025. The purchase will provide the company with direct access and a first mover advantage in the lucrative psychedelic therapy sector.
The proposed purchase will also come on the heels of Senate Bill 519, which passed through the Californian State Assembly Committee on Public Safety on June 29. Though not a law yet, SB519 proposes that a wide range of psychedelic substances, including psilocybin, should be legal to use and possess for adults over the age of 21.
Halucenex Founder & CEO Bill Fleming, commented “While some conditions remain, we are very excited to have taken a step closer to becoming part of the Creso Pharma group. Creso Pharma will provide a number of distinct advantages for Halucenex, including access to a management team that has achieved regulatory approvals, brought drugs to market and successfully commercialised a number of offerings."
The company also reported that, in order to better assist with Halucenex’s ongoing clinical trial and R&D initiatives, it has appointed Brenda Perks as its Lead Clinical Psychotherapist. Ms. Perks is a leading psychedelic-assisted psychotherapy guide, researcher and consultant. She brings over 30 years of diversified nursing experience.