In a transformative move for the burgeoning psychedelic therapeutics sector, Toronto-based Cybin Inc. is poised to acquire UK’s Small Pharma Inc., elevating its position as a pioneer in the field.
This all-share acquisition comes as both firms endeavour to revolutionise mental healthcare by harnessing the transformative powers of psychedelic-based treatments.
Under the agreement, Small Pharma’s shareholders are slated to receive 0.2409 Cybin shares for each of their holdings.
As of 25th August 2023, this exchange amounts to approximately $0.10 per Small Pharma Share – a notable 43.64% premium, when considering the recent 30-day volume weighted average prices.
Following the transaction, Cybin and Small Pharma stakeholders are expected to own about 74.5% and 25.5% of the combined entity, respectively.
Doug Drysdale, Cybin’s CEO, expressed enthusiasm about the union, highlighting the strategic alignment between the two companies. “The merger not only places us at the forefront of novel psychedelic therapeutics but also brings together the expertise and innovation from both sides,” he said. “With the combined strengths, we’re positioned to drive long-term value without incurring additional debt.”
Since its inception in 2015, Small Pharma has cemented its reputation in short-duration psychedelic therapies for mental health.
Their seminal work on N,N-dimethyltryptamine (DMT) in treating Major Depressive Disorder (MDD) has been particularly noteworthy.
With a hefty $63 million raised in capital since 2021, they’ve also advanced two DMT-based clinical programs and fostered a strong intellectual property portfolio.
George Tziras, CEO of Small Pharma, reflected on the company’s journey, “From our early days, we’ve been dedicated to transforming mental health treatments. Cybin shares our mission, and with their presence on the NYSE American, we anticipate greater access to US capital markets.”
Together, Cybin and Small Pharma will boast the largest systematic research dataset on short-duration psychedelic molecules, specifically DMT and deuterated DMT.
This collaboration could reshape the future of mental health treatments, particularly for conditions amenable to psychedelic therapies.
Amidst plans for future clinical trials, data readouts, and anticipated breakthrough therapy designations, the combined company will be steered by Drysdale, with the integration of Small Pharma’s expertise ensuring a robust, experienced team at the helm.
This partnership signals a bright horizon for psychedelic-based mental healthcare solutions on a global scale.
