Mydecine On Verge Of Finalizing Spin-Out Of Cannabis Subsidiaries, Obtains Shareholder And Court Approval

Psychedelics and mycology company Mydecine Innovations Group Inc. MYCO MYCOF is poised to wrap up the spin-out of its U.S. cannabis assets into a newly formed subsidiary.

The Denver-based company announced Friday it has received shareholders' approval for the transaction at its annual general and special shareholders meeting the last week. The company's shareholders voted 99% in favor of approving a statutory plan of arrangement between Mydecine and ALT House Cannabis Inc.

In addition, the company obtained final approval from the Supreme Court of British Columbia on Friday.

Mydecine expects to complete the transaction on or about October 1.

In June 2020, Joshua Bartch, Mydecine's CEO, told Benzinga they seek to find the best way to manage the company's cannabis properties.

"We're looking at what's the best positioning as a company moving forward for those specific assets, whether that potentially could be a spin-out and/or those assets take their own path in your own separate vehicle and/or maybe they operate in a separate division," Bartch said.

Mydecine was launched last year through the merger of Mydecine Group, a private fungi research company from Colorado, and New Leaf Brands, a public cannabis company that previously traded under the symbol NLB.

In the meantime, the company recently kicked off a virtual drug discovery program poised to use artificial intelligence and machine learning to inform its drug discovery process, ahead of inking a five-year research deal with Johns Hopkins University (JHU) School of Medicine to study the application of psychedelics molecules and therapies in smoking cessation.

Price Action

Mydecine’s shares traded 1.04% higher at $0.2728 at the time of writing Monday morning.

Photo: Courtesy of Jesse Dodds on Unsplash