The psychedelics sector has closed one of its largest M&As since its inception.
Enveric is a biotech company working with cannabinoids and other molecules in the treatment of cancer-related disorders. It has welcomed MagicMed as a new subsidiary through an all-stock transaction.
MagicMed is a psychedelics drug development company creating a library of novel derivative molecules based on classic psychedelics such as psilocybin, DMT, mescaline, ibogaine, MDMA and LSD.
Enveric issued the shareholders of MagicMed approximately 9.5 million shares. Now, Enveric shareholders own approximately 68% of the combined company, while MagicMed shareholders own approximately 32%.
The new Enveric also received approximately CA$4 million ($3.1 million) in cash from the MagicMed treasury.
At a current stock price of $2.46 for Enveric shares, the transaction is valued at approximately $23 million.
New Management, New Horizons
As a result of the acquisition, Enveric will feature a new drug discovery and research arm with a strong focus on psychedelic drugs and cannabinoids.
"It's been in the works for a little while," said Dr. Joseph Tucker, founder …