The Canadian psychedelic drug developer Cybin Inc. (NYSE American: CYBN) (NEO: CYBN) will be acquiring the United Kingdom’s DMT research company Small Pharma Inc. (TSX-V: DMT) (OTCQB: DMTTF), thereby creating an entity with one of the largest intellectual property portfolios in the industry.
The companies announced the acquisition on Monday, which will provide Small Pharma shareholders with 0.24 Cybin shares for each stock they hold. They say that Cybin shareholders will own 74.5 per cent of the combined company and Small Pharma shareholders will possess the remaining 25.5 per cent once the transaction has closed.
Small Pharma shares are currently worth $0.09 on the TSX Venture Exchange and have risen by over 28.5 per cent in the past five days. Cybin stock is currently worth US$0.32 on the NYSE American exchange and has dropped by over 70 per cent in the past year.
The companies say their combined DMT and deuterated DMT programs will constitute the most substantial dataset on the molecules in existence and that they will complement each other by providing operational and cost synergies.
The combined entity, headquartered in Toronto, will possess 28 granted patents with 158 patent applications currently pending.
“This marks the beginning of an exciting new chapter for Small Pharma. Cybin’s senior listing on the NYSE American can also provide increased access to the broader and deeper capital markets of the United States,” said Small Pharma’s CEO George Tziras. He will be joining Cybin’s board following completion of the acquisition.
“Our combined portfolios, having an increased number of potential value-catalysts, also create added opportunities to support future funding activities with no added debt,” said Cybin’s CEO Doug Drysdale.
Cybin has entered into an agreement to acquire @SmallPharma, creating an international clinical-stage leader in novel psychedelic therapeutics.
📆Learn more at a joint Cybin and Small Pharma conference call today, August 28 2023, at 11:30 a.m. ET
The combined entity will hold…
— Doug Drysdale (@insidepharma) August 28, 2023
Dimethyltryptamine (DMT) is a naturally occurring psychedelic compound found in plants and animals, including in the human brain where it is known to be produced endogenously during deep rapid eye movement (REM) sleep. It has been used ceremonially by Indigenous cultures for thousands of years for healing purposes through ingesting the medicinal psychedelic brew Ayahuasca and can be extracted from plants and smoked or injected as well.
The compound has been rapidly gaining interest among the scientific community in recent days for its therapeutic potential and ability to potentially treat certain mental and physical health conditions.
Small Pharma’s flagship DMT-based drug SPL026 has demonstrated significant anti-depressant effects in Phase II studies and the company is also currently developing the deuterated DMT drug SPL028 and plans to study its efficacy in a Phase I study.
Cybin recently dosed its final group of patients in a study examining the effects of its CYB003 psilocybin analogue and expects to have conclusive efficacy data on the drug during this quarter and Q4. The company is also developing the deuterated DMT drug CYB004 for the treatment of major depressive disorder, which is currently still being examined in Phase I studies.
Cybin is actively engaged in a research partnership with the University of Washington.