Mota To Buy German Psilocybin Innovator For $14M

Mota Ventures Corp. has agreed to acquire Verrian Ontario Ltd. for CA$20 million (US$14.2 million).

“Signing this binding term sheet is an important step towards Mota’s goal of becoming a leader in the natural health space," said Mota CEO Ryan Hoggan. "Verrian’s significant investment into its licensing, research, equipment and facilities have made it one of the top psychedelic medicine companies. Mota is poised to capitalize on an emerging industry and will continue to expand its North American and European operations to ensure a strong distribution network is in place once this line of product is approved to go to market."

Included in the deal is Verrian's 110,000 square-foot pharmaceutical manufacturing facility in Radebeul, Germany.

According to the release, Verrian's aim is to reduce dopamine reward addictive dynamics by the use of micro-dosing psilocybin, "rewiring the mind to overcome the addiction."
The company owns two psilocybin products derived from organic mushrooms and natural herbs, PSI GEN and PSI GEN+, focused on opiate addiction reduction.

Shares will be issued at an evaluated price equal to the company's average closing price in the ten business days immediately preceding the entry of the final documentation concerning the transaction.

Shares will be subject to the terms of a 36-month release pooling agreement. In addition, at the closing of the transaction, the company will instrument the payment of existing loans for a total of CA$1,100,000 (US$780,000).

Simultaneous achievement of the deal, an administrative fee of CA$422,000 will be owed to a consultant who assisted with the Transaction, payable in the company's common stock.

The transaction remains subject to a series of conditions.