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  • Hollister Biosciences (CSE:HOLL) has completed its previously announced acquisition of AlphaMind Brands
  • The agreement was first announced in a letter of intent back in early March this year
  • AlphaMind is currently developing a portfolio of legal mushroom-based natural health products
  • As consideration for the acquisition, Hollister issued 4.2 million common shares to the vendors of AlphaMind at a value of C$1.2 million
  • Hollister Biosciences (HOLL) is currently down 3.7 per cent to $0.13 per share, with a market cap of $24.07 million

Hollister Biosciences (CSE:HOLL) has completed its previously announced acquisition of AlphaMind Brands.

The agreement was first announced in a letter of intent back in early March, and comes hot on the heels of a separate acquisition in Venom Extracts.

As a growth-stage company, AlphaMind is currently developing legal mushroom-based health products for the consumer market. It is also working collaboratively with accredited universities in the development of psilocybin-based compounds for pharmaceutical use.

The company already has a range of ready-to-ship products that include cordyceps, lion’s mane, chaga and reishi mushrooms. Additional products, such as syrups, elixirs, cold beverages and nasal sprays, are currently under development.

“We are very pleased to have closed this transaction”, said Dr. Nikos Apostolopoulos, Chief Product and Research Officer of AlphaMind Brands.

“We are looking forward to working with Hollister to build out our medicinal mushroom-based product line and conducting further R&D to develop an exciting IP portfolio surrounding psilocybin-based pharmaceutical treatments,” he added.

Under the terms of the all-stock deal, Hollister has issued 4.2 million common shares to the vendors of AlphaMind at a value of C$1.2 million. An additional 1.8 million common shares will be issued upon the completion of certain milestones or on December 31, 2021, whichever comes first.

Hollister will not assume any long-term debt, an no new control position within AlphaMind will be created. In addition, there will be no changes to Hollister’s Board of Directors.

Carl Saling, Founder and CEO of Hollister Biosciences, said he is excited to bring another promising brand to the Hollister family.

“It is our continual objective to broaden our product scope and AlphaMind, with its experienced management team, is a perfect foothold for us in the fast-growing market for medicinal mushrooms and complements our existing cannabis and hemp- based product offering,” he concluded.

Hollister Biosciences (HOLL) is currently down 3.7 per cent to $0.13 per share at 12:21pm EST.

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