Champignon Brands Signs Definitive Agreement To Acquire AltMed Capital
Champignon Brands (CSE: SHRM) has announced this evening that it will be acquiring alternative medicine company AltMed Capital in an all stock transaction. AltMed is a Canadian ketamine clinic operator, psychedelic medicine IP aggregator and novel drug discoverer.
For those that follow the psychedelic space, the go-public event of AltMed was much anticipated. The company, via founder Dr Roger McIntyre, was the first to launch a Canadian treatment center focusing on providing rapid onset treatment for persons with mood disorders, The Canadian Rapid Treatment Centre of Excellence (the “CRTCE”). The company currently owns a 75% stake in the CRTCE, and intends to launch further subspeciality therapeutic clinics with Champignon to establish a network of clinics focused on the use of ketamine, psilocybin, and MDMA.
The clinic is unique in that it is the only clinic in Canada licensed by Health Canada to administer doses of psilocybin to eligible patients. The clinic is also licensed to utilize ketamine as a treatment for indications that include depression, bipolar disorder, post traumatic stress disorder, and obsessive compulsive disorder among others. The CRTCE is the only rapid onset treatment clinic that has gone from proof of concept, to human clinical trials and publication.
In addition to the CTRCE clinic, Champignon as a result of the AltMed transaction will now also have three clinical trials in phase 1, and three studies in the preclinical stage. This is in addition to seven patents related to ketamine and psilocybin delivery platforms and formulations. Together, Champignon and AltMed intend to advance psychedelic-derived treatments to build one of the strongest psychedelic-focused portfolios in the space. The company currently plans to commence R&D for several indications including treatment resistant depression, addiction, PTSD, dementia and anxiety.
Founded and operated by Dr. McIntyre, the CRTCE has the human capital and unmatched R&D capabilities, with respect to rapid onset treatments such as ketamine, to revolutionize the treatment of depression, PTSD and substance use disorders. Champignon and AltMed will leverage Dr. McIntyre’s expertise, alongside the CRTCE’s existing SOPs, data-driven research sets and practitioner education modules, to roll out five unique ketamine clinics across Florida, California and the U.S. Eastern Seaboard. Our additional ketamine clinics are projected to be fully operational by Q4 2020. Furthermore, having previously completed funding rounds, our acquisition of AltMed will further bolster our corporate treasury.
Gareth Birdsall, CEO of Champignon
Under the terms of the definitive agreement, Champignon Brands will acquire AltMed Capital in exchange for 55,124,000 common shares. Of these shares, 16,522,000 will be subject to the standard four month hold period. The remaining portion will be subject to voluntary resale restrictions which will be unlocked in five tranches, with an unlock occurring every 3 months.
Champignon Brands last traded at $0.86 on the CSE.
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