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Silo Wellness, a publicly traded psychedelics company, has executed a nonbinding letter of intent to acquire Dyscovry Science, a Toronto-based biotechnology company that focuses on biosynthetic manufacturing of psilocybin and its derivatives.
Unlike most of its peers in the psychedelics space, which focus on mental health issues, Dyscovry is targeting a physiological condition: irritable bowel syndrome. In addition, the company has research collaboration with Canadian federal government research laboratories intended to further de development of a biotechnological process for the production of psilocybin and its potentially novel molecule derivatives.
The Deal And The Future
If the due diligence process and definitive agreement are completed, Silo will acquire 100% of Dyscovry’s shares in exchange for 49% of the issued outstanding securities of the former.
According to Mike Arnold, president and founder of Silo Wellness, the deal took almost one year to materialize.
“We have watched the psychedelic market get pummeled as many have been chasing the ‘me too’ pharma deals, while we stayed focused on preparing for Oregon adult-use with a successful Jamaican retreat model while, in the background, working on this unique opportunity,” said Arnold. “For the first time under one roof, a publicly-traded company will provide psychedelic healing right now through Jamaican psychedelic wellness retreats while at the same time innovating the ‘what’s next’ for psychedelic pharmaceutical healing.”
For Arnold, it’s key to ensure that natural psychedelics are never “locked up solely behind a pharmacy window controlled by corporations.”
“Our planned acquisition of Dyscovry shows that traditional medicines can coexist alongside modern scientific innovation,” he said.
A Thoughtful Approach
Dyscovry’s management team, Brad Dottin and Gerard Lee, like to emphasize their company’s thoughtful approach to the emerging psychedelic pharmaceutical landscape.
“We have intended to differentiate Dyscovry and de-risk our psychedelic pharmaceutical opportunity by assembling the key components to create a comprehensive pharmaceutical corporation with psilocybin and its derivatives targeting a physiological condition, IBS,” said CEO Gerard Lee “Dyscovry has the facilities, IP, clinical research, and the public and private collaborations required to begin to advance this initiative.
“By Dyscovry's research team focusing on investigating a quantifiable anti- inflammatory effect of psychedelics, Dyscovry has embarked on the rigorous scientific investigation of enhanced biosynthesis of psilocybin, as an alternative therapeutic option to both naturally-occurring and chemically-synthesized psilocybin. The downstream goal is to bring regenerative medicine approaches to the treatment of IBS,” he added.
Arnold echoed the sentiment, talking about “a de-risking platform for psychedelic investors.
“We believe we will be the only company with deep roots in Oregon that is actively providing psilocybin to paying guests in the western hemisphere (Jamaica) while at the same time working a pharmaceutical opportunity (Dyscovry),” he said. “In other words, if the future of psychedelic medicine is a state-by-state legalization akin to cannabis, we intend to have you covered. If the future is pharma, we have an asset for you as well. If these parallel avenues go forward simultaneously with a thriving adult use market in addition to pharma, then freedom wins, and the world is better for it. We intend to be a leader in the space and hope to bring inexpensive psychedelic healing to as many people in need as possible.”
