Enters into the Chronic Pain Market with Psychedelics
Global Wellness Strategies Inc. (CSE: LOAN) (FSE: O3X) (OTCQB: PNNRF) (formerly Redfund Capital Corp.) ("Global" or the "Company") is pleased to announce the signing of a definitive agreement on August 6th 2021 memorializing the Global Wellness Strategies, Inc. binding letter of intent signed on July 12th 2021 to purchase certain assets of Cannvalate Pty Ltd. ("CV") based in Australia and to acquire 100% of their wholly owned subsidiary, Shanti Therapeutics Pty Ltd. ("Shanti"), and all its assets focused on psychedelic MDMA-based drug development. This acquisition is focused on becoming the first and only company solving the puzzle of chronic pain with MDMA-based medicines utilizing clinical trials for the purposes of novel drug development.
The global chronic pain treatment market is predicted to progress at a CAGR of 6.5% from 2020 to 2030 and generate revenue of $151.7 billion in 2030.1 Chronic Pain has a significant psychosocial component2 which is not fully addressed by existing analgesics3. To-date, there are no psychedelic drugs that have been approved as analgesics and there is a paucity of literature describing their use in this novel setting4. The team will conduct clinical research on an IP-protected, novel drug, with MDMA as the primary API, with a view to modulate the psychosocial component of pain. After positive confirmation from the proof-of-concept clinical study, toxicology and CMC will be conducted to open an IND (Investigational New Drug) File with the FDA.
"In order to explain impacts of pain, Canadian psychologist and professor of psychology at McGill University Ronald Melzack and his research colleague Patrick Wall proposed what is known as "gate control theory". Their theory suggested that the spinal cord contains a neurological "gate" that either blocks pain signals or allows them to continue on to the brain; in basic language that "pain was really just in our heads". Discovering new MDMA medicines and cures for pain management through clinical trials is a game changing opportunity for all our stakeholders. We look forward to working closely with the Shanti team and changing the pain landscape with MDMA." - Meris Kott, CEO, Global Wellness Strategies Inc.
"It is an honour and privilege to be in the position to use novel psychedelic treatments to solve the complex puzzle that is chronic pain. Most of us will know at least one person who lives with the relentless suffering of chronic pain. This is our opportunity to use a novel MDMA-based medication, to alter the psychosocial component of chronic pain and commence the healing process." - Darryl Davies, CEO, Shanti Therapeutics Pty Ltd.
The assets acquired by Global Wellness Strategies Inc. and sold and owned by CV and managed by Shanti include but are not limited to application patents, intellectual property, formulae, compounds, solutions, research, data, techniques, processes, brand names, trade names, trademarks.
The purchase price of CDN$2,500,000.00 will be consummated in restricted shares of Global Wellness Strategies Inc. common stock in four (4) installments tendered over an eight (8) month period; representing 100% of the assets of Shanti Therapeutics Pty Ltd. Global Wellness Strategies valuation for tranche issuances will be subject to a 30 day VWAP with a base share price set at .20 There is an additional contingent consideration of CDN$2,500,000 to Shanti based on the performance of their assets and specific milestones must be met. Shanti shall have the right to appoint one director to the board of Global Wellness Strategies Inc.
Peak Asset Management is a boutique investment management firm, headquartered in Melbourne, Australia and acted as a financial advisor to both parties in the transaction.
Cannvalate was established in early 2018 by co-founders Sud Agarwal, Asaf Katz and Darryl Davies. Cannvalate is a leader in the science, development and commercialization of cannabinoid-based prescription medicines with a large patent portfolio of novel cannabinoid and psychedelic drugs. Additionally, Cannvalate jointly owns a Contract Research Organisation with a major Australian university specialising in cannabinoid and psychedelic clinical trials which has been researching psychedelic solutions for several years. Cannvalate holds an Australian import license and license to supply schedule 8 poisons (including MDMA and Psilocybin).
About Global Wellness Strategies
Global Wellness Strategies is a prospect generator that provides high growth companies with financial, operational, and management assistance in the fast-growing market for wellness consumer products. The focus of the Company is on global wellness, psilocybin, mycology, hemp and CBD, healthcare-related target companies.
For further information please visit out website: www.globalwellnessstrategies.com
Or Contact Meris Kott CEO 604.484.0355 or email to email@example.com
Further information about the Company is available on www.SEDAR.com under the Company's profile.
Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release. Certain statements contained in this release may constitute "forward-looking statements" or "forward-looking information" (collectively "forward-looking information") as those terms are used in the Private Securities Litigation Reform Act of 1995 and similar Canadian laws. These statements relate to future events or future performance. The use of any of the words "could", "intend", "expect", "believe", "will", "projected", "estimated", "anticipates" and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the Company's current belief or assumptions as to the outcome and timing of such future events. Actual future results may differ materially. In particular, this release contains forward-looking information relating to the business of the Company, its financing and certain corporate changes. The forward-looking information contained in this release is made as of the date hereof and the Company is not obligated to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Because of the risks, uncertainties and assumptions contained herein, investors should not place undue reliance on forward-looking information. The foregoing statements expressly qualify any forward-looking information contained herein.
1 Global Chronic Pain Treatment Market Analysis and Growth Forecast Report 2020 - 2030
2 Pain 1994 Apr;57(1):5-15
3 Psychol Res Behav Manag. 2014; 7: 115-124
4 Pain 2011 Apr;152(4):717-725
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/92463