Psychedelics M&A: Wesana Health To Purchase PsyTech In $17M All-Stock Transaction

On Tuesday, Wesana Health Holdings WESA, a life science company that champions the development of psychedelics and other medicines for the treatment of traumatic brain injury, announced a definitive agreement to acquire PsyTech Inc. in an all-stock transaction for approximately CA$21 million ($16.8 million). 

“The acquisition of PsyTech will greatly accelerate our ability to understand, analyze and improve neurological health and performance by providing a data platform on which to build our technical strategy, clinics in which to apply and accelerate our neuroscience research and relationships with many thousands of the practitioners who will leverage our medicines, diagnostics and technology to heal people,” said Daniel Carcillo, CEO of Wesana Health.

Chicago-based PsyTech (not to be confused with Oxford-based Beckley PsyTech) defines itself as a company with the mission of “empower[ing] healthcare providers with tools to deliver best-practice care to patients, including the main-streaming of breakthrough psychedelic therapies.” 

The purchase will make PsyTech a wholly-owned subsidiary of Wesana. PsyTech will bring on “Tovana Solutions,” its clinical software-as-a-service (SaaS) platform, which will be rebranded “Wesana Solutions.” The platform eases access to clinical protocols and tracks their efficacy by collecting data on both providers and patients, as well as real-time tracking, patient management and analysis.

PsyTech will also bring over its Tovana Clinics, which will be rebranded “Wesana Clinics.” These two psychiatrist-led mental health clinics located in Chicago are focused on delivering ketamine therapy, among other treatments. The companies also expect to provide treatment with other psychedelics once they are approved. A third clinic has been announced as currently under construction.

Lastly, the PsyTech Connect platform will be added to the Wesana ecosystem. It is described as a “psychedelic therapy community” with over 8,000 actively engaged professionals. The platform organizes events and conferences such as the annual PsyTech Summit.

Wesana will issue 7.4 million subordinate voting shares. The transaction is expected to close in the third quarter of this year. Its completion is subject to final shareholder approval by PsyTech.

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