Perth-based Little Green Pharma (ASX: LGP) has today announced its intention to demerge subsidiary Reset Mind Sciences in a bid to capitalise on the strong momentum of the psychedelics sector.
The medicinal cannabis producer believes the move would be in the “best interest” of shareholders and will allow Reset to “pursue its strategy as a standalone company.”
If approved by shareholders, the demerger gives Reset the opportunity to solely focus on developing is psychedelics business, and will become its own unlisted entity during the June 2022 quarter.
“We have invested significant effort investigating and advancing Reset’s psychedelics operations throughout 2021 and believe it is now at a point where it is best placed to grow as a standalone business,” LGP CEO Fleta Solomon said.
“We are confident the demerger will allow for both Reset to drive its psychedelics strategy and LGP to focus solely on its medicinal cannabis business.
“We believe the demerger rewards LGP shareholders for Reset’s progress to date and allow them to participate in its exciting future.
LGP initially entered the psychedelic space in September last year after it received a licence to supply psilocybin from the Western Australian Department of Health.
Since then, Reset has commenced the construction of its stand-alone psilocybin mushroom cultivation facility, which is expected to be completed in the June 2022 quarter.
The company has also made progress on a WA-based clinical trial into psilocybin assisted psychotherapy, which has received a federal import permit for synthetic psilocybin and is currently finalising protocols for the trial.
Post-demerger, LGP will continue to provide Reset with operational support and product supply.
“The psychedelics industry is now gaining significant momentum in Australia which includes support from the Australian Government for medicinal psychedelics research through a $15 million grant program awarded in January 2022,” LGP said.
As part of the split, Shaun Duffy will be appointed as CEO and executive director of Reset, Angus Caithness as executive director and Honourable Cheryl Edwardes AM as a non-executive director and chairperson.
“We believe Reset is ideally placed to play a leading role in the evolution of the psychedelics industry in Australia,” Reset CEO Shaun Duffy said.
“We’ve been able to make significant progress drawing on the expertise, experience and facility investment that exists in LGP, and our first mover status has allowed us to attract attention of many experienced organisations and individuals as potential partners.”
