- GreenStar Biosciences (CSE:GSTR) has signed a non-binding letter of intent, agreeing to acquire 100 per cent of Eleusian Biosciences
- The company will issue Eleusian shareholders up to 60 million GreenStar common shares, worth C$3 million
- GreenStar expects the acquisition to provide development opportunities in the health, wellness, and life sciences industries
- The acquisition will also include Eleusian’s two provisional US patents, a collaborate research agreement, and approximately $225,000 in cash
- GreenStar Biosciences (GSTR) is up 16.67 per cent and is currently trading at seven cents per share
GreenStar Biosciences (CSE:GSTR) has signed a non-binding letter of intent to acquire 100 per cent of Eleusian Biosciences.
The company will acquire Eleusian by issuing GreenStar common shares to Eleusian Biosciences’ shareholders. GreenStar will issue 60 million common company shares, at five cents each, for total consideration of up to C$3 million.
The company will release 25 per cent of its shares on the closing date of the transaction. The remaining shares will be released in 25 per cent increments every three months after the transaction completes.
GreenStar will also issue an aggregate 250,109 stock options to certain personnel from Eleusian. The company will settle a five per cent finder’s fee, by issuing the arms-length finder with three million GreenStar shares.
Eleusian’s main focus is on developing medical devices and therapeutics for a variety of specific diseases and conditions.
In April 2020, Eleusian filed two provisional US patent applications, for devices and therapies treating traumatic brain injuries and PTSD. The device is a nasal mist transducer, and the therapy was a combination of psilocybin and N-Acetylcysteine (NAC).
Psilocybin is the active ingredient in psychedelic mushrooms, and is at the heart of a swiftly growing new industry. NAC has demonstrated safe and effective results in treating military personnel with concussions and other brain injuries.
Eleusian is also currently collaborating with a team at the University of Miami’s Miller School of Medicine. The collaboration is to develop effective therapeutics for mild traumatic brain injury and post-traumatic stress disorder.
GreenStar expects the acquisition to provide various development opportunities in the health, wellness, and life sciences industries. The company is also excited to welcome Eleusian’s management team, which includes experienced executives from life science companies.
The acquisition will include Eleusian’s two provisional US patents, its research agreement with the University, and approximately $225,000 cash. To date, Eleusian has not earned any revenue, and has only incurred limited operating costs.
GreenStar Biosciences (GSTR) is up 16.67 per cent and trading at seven cents per share at 11:25am EDT.