logo
  

Enveric To Buy Drug Discovery And Development Platform MagicMed In All Stock Deal

Enveric Biosciences (ENVB) , a patient-first biotechnology company developing novel cannabinoid medicines, announced Monday that it has entered into a definitive agreement to acquire MagicMed Industries Inc., a pharmaceutical drug discovery and development platform, in an all-stock transaction.

At the closing, a recently formed unit of Enveric will amalgamate with MagicMed, with the resulting corporation being an indirect wholly owned subsidiary of Enveric.

Under the terms of the amalgamation agreement and other related agreements, Enveric will issue the shareholders of MagicMed an aggregate of 9.95 million shares of common stock, as well as warrants, options, and restricted stock units to acquire an additional 9,039,882 shares of common stock of Enveric.

The current Enveric shareholders will own approximately 63.4% of the combined company's common stock, and current MagicMed shareholders will own approximately 36.6% of the combined company's common stock.

The agreement is subject to customary closing conditions and the approval of Enveric's and MagicMed's shareholders and is expected to close during the second half of 2021.

Additionally, as part of the closing of the transaction, Enveric will receive approximately C$4 million in cash from the MagicMed Treasury.

MagicMed is a privately-held biotechnology company focused on creating a library of novel derivative psychedelic molecules such as psilocybin, N,N-dimethyltryptamine or DMT and other molecular derivatives with applications across multiple indications.

Enveric expects the acquisition to expand and complement its current pipeline of naturally occurring compounds, which is primarily focused on cannabinoids, to now include a robust portfolio of psychedelic-derived molecules.

Enveric said it intends to continue to develop patient-centric support care therapies in oncology and central nervous system or CNS indications.

Upon closing, Enveric intends to commence drug discovery and development for treatment of cancer-related Post Traumatic Stress Disorder or PTSD patients who are currently in treatment for cancer and those who are in remission.

It is anticipated that the PTSD drug development program holds the potential to be expanded in the future beyond cancer-related applications to include other patient populations, such as military veterans.

Once closing is complete, Joseph Tucker will be appointed Chief Executive Officer of the Company and David Johnson, current Chief Executive Officer and Chairman, will be appointed Executive Chairman.

In pre-market activity on Nasdaq, Enveric shares were trading at $2.88, up 5.88 percent.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
Oilfield services company Schlumberger Ltd. reported Friday a profit for the fourth quarter that surged 61 percent from last year, reflecting 13 percent higher revenues amid growth across all segments and regions. Both adjusted earnings per share and quarterly revenues topped analysts' estimates. Twitter Inc. has launched a new feature to allow some users of its Blue subscriber service to keep non-fungible tokens or NFTs as their profile pictures. Twitter Blue is now available in the US, Canada, Australia, and New Zealand. NFT is a crypto token, which is non-fungible, meaning that it can neither be transferred like money nor replaced with something else. Frozen Food Development is recalling specific lots of Lidl branded 12-ounce packages of Frozen Chopped Spinach citing the potential to be contaminated with Listeria monocytogenes, the U.S. Food and Drug Administration said. The product comes in 12-ounce poly bags, and items included in the recall are marked with lot # R17742 or R17963 on the back of the poly bag with a best by date of 09/10/23.
RELATED NEWS
Follow RTT