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Creso Pharma inches closer to completing Halucenex acquisition following shareholders’ approval

Summary

  • Creso Pharma has come very close to completing the Halucenex acquisition, having received shareholders’ approval at the 2021 Annual General Meeting.
  • On the completion of Halucenex acquisition and the proposed takeover of Red Light Holland, the new firm will become one of the very few companies worldwide to have a two-pronged focus on pharmaceutical as well as recreational psychedelic offerings.
  • Halucenex has also strengthened its clinical trial team with the appointment of Brenda Perks as Lead Clinical Psychotherapist.
  • The passing of SB519 would provide another opportunity for Creso and Red Light Holland following the completion of the potential merger.

Creso Pharma Limited (ASX:CPH) is on the verge of completing the acquisition of Halucenex Life Sciences following the shareholders’ approval at the Company’s 2021 Annual General Meeting.

The pharmaceutical player anticipates completing the transaction next week. The deal is significant for Creso as it offers the Company access to another lucrative and emerging market sector.

Source: Copyright © 2021 Kalkine Media

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Furthermore, Halucenex has also strengthened its clinical trial team, ahead of the planned Phase 2 clinical trial, with the appointment of psychedelic-assisted psychotherapy expert Brenda Perks as Lead Clinical Psychotherapist.

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A first-mover advantage to Creso in psychedelic space

The post-traumatic stress disorder (PTSD) therapeutics market is a lucrative one, expected to hit the US$10.5 billion mark by 2025. The Halucenex acquisition will provide Creso with a first-mover advantage and direct access to the attractive psychedelic therapy market.

Closing this deal will tick off an important milestone for Creso ahead of its proposed reverse takeover of Red Light Holland. Post the Halucenex acquisition and the proposed takeover, the newly formed firm will become one of the very few companies worldwide focusing on both pharmaceuticals and recreational psychedelic offerings.

Halucenex bolsters its team with a new appointment

Halucenex has onboarded Brenda Perks as Lead Clinical Psychotherapist to assist with the ongoing clinical trial and R&D initiatives.  

Ms Perks will help Halucenex develop a psychotherapy treatment program to support clinics, as well as its Phase 2 clinical trial. Furthermore, Halucenex will leverage Ms Perks’ extensive experience and established network to enhance the Company’s educational initiatives significantly.

Ms Perks’ background and experience would also help Halucenex to increase practitioner and patient awareness of psychedelic compounds as an alternative therapy route.

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California provides a legislative tailwind for Creso

Creso Pharma and Halucenex highlighted that on 29 June 2021, Senate Bill 519 (SB519) passed through the Californian State Assembly Committee on Public Safety, which marks a significant step towards the legislation enacted into law.

Senate Bill 519 suggests that a comprehensive range of psychedelic substances, including psilocybin, should be legalised for use and possession for people aged 21 and over. The bill also erases the previous criminal offences for the use and possession of psychedelics.

SB519 was introduced to advance a more health-focused approach for the use of psychedelics. Besides, it would also help focus on the current mental health calamity in the US.

California is the largest US state by population with more than 39.5 million citizens making the potential target market extremely lucrative. The state is on track to becoming the second US state to legalise the use of psychedelics, highlighting a favourable regulatory shift and operating landscape for Creso Pharma.

ALSO READ: Halucenex teams up with Sixth Wave; Californian legislation another leg-up for Creso Pharma

Interestingly, this development highlights a significant market opportunity for CPH, Halucenex, and The HighBrid Lab (awaiting a merger between Creso and Red Light Holland).

Creso highlighted that it is also extensively exploring and monitoring the regulatory landscape in California and the US. The companies are outlining market entry strategies with high yield opportunities. The HighBrid Lab will be well-positioned to seize opportunities as they arise. Furthermore, additional synergies between Halucenex and Red Light Holland are also being explored.

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Management Commentary

Bill Fleming, Founder & CEO of Halucenex, commented-

Adding to this, Adam Blumenthal, Non-executive Chairman of Creso Pharma, said-

All in all, the acquisition of Halucenex will mark a critical milestone for Creso, offering it access to another lucrative and emerging market segment. Furthermore, the Company is set to benefit from the passing of Senate Bill 519 that proposes the legalisation of the use and possession of psychedelics for people aged 21 and above.

On 2 July 2021, CPH shares closed at AU$0.135.

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