- Global Wellness (LOAN) has acquired Cannvalate subsidiary Shanti Therapeutics Pty Ltd.
- The acquisition of Shanti Therapeutics will allow Global Wellness to become the only company solving the puzzle of chronic pain with MDMA-based medicines through clinical trials
- 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 clinical study, toxicology and CMC will be conducted to open an IND (Investigational New Drug) File with the FDA
- Global Wellness Strategies Inc. (LOAN) is currently trading at C$0.19
Global Wellness (LOAN) has signed a definitive agreement to acquire Cannvalate Australia subsidiary Shanti Therapeutics Pty Ltd.
This acquisition will allow Global Wellness to become the first and only company solving the puzzle of chronic pain with MDMA-based medicines through clinical trials.
The global chronic pain treatment market is predicted to progress at a CAGR of 6.5 per cent from 2020 to 2030 and generate revenue of $151.7 billion in 2030.1
Chronic Pain has a significant psychosocial component that is not fully addressed by existing analgesics. 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 setting.
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’,” said Meris Kott, CEO, Global Wellness Strategies Inc.
“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.” added Kott.
The purchase price of CDN$2.5 million 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 per cent 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 $0.20. There is an additional contingent consideration of CDN$2.5 million 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.
Cannvalate was established in early 2018 by co-founders Sud Agarwal, Asaf Katz and Darryl Davies.
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.
Global Wellness Strategies Inc. (LOAN) is currently trading at C$0.19.
