(Alliance News) - Psych Capital PLC on Monday said it has agreed to acquire Shortwave Pharma Inc for GBP3.5 million.
Psych Capital is a London-based psychedelic medicines media and investor, while Shortwave Pharma is an Ontario, Canada-based medical therapy developer with operations based in Israel. Shortwave develops therapies to address unmet needs in mental health, with a focus on eating disorders.
Psych Capital said the purchase aligns with its commitments to improving patient care and improving mental healthcare through innovative treatments.
The acquisition will be paid via a combination of cash and new shares in Psych, with 71.2 million initial consideration shares expected to be issued at 4.0 pence per share.
A further 9.0 million shares will be issued as deferred consideration if Shortwave meets certain conditions by December 2024. Additionally, 7.5 million shares will be issued as deferred consideration on the first anniversary of the completion of the acquisition.
USD120,000 of the consideration will be satisfied in cash.
Chief Investment Officer William Potts said: "The acquisition of Shortwave Pharma represents a significant step forward in our mission to improve the lives of individuals affected by mental illnesses such as eating disorders. With their scientific prowess and innovative approach to drug development, we are well-positioned to make meaningful advancements in this critical area of healthcare."
Psych Capital shares were flat at 1.55 pence each in London on Monday morning.
By Harvey Dorset, Alliance News reporter
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