Core One Labs’ (COOL.C) wholly-owned subsidiary Vocan Biotechnologies has entered into a term sheet with Vocan Brazil Biotechnologies (Vocan Brazil) for the licensing of its proprietary technology, biosynthesized psilocybin. Vocan Brazil is owned by Brazilian entrepreneur and former Canopy CEO Mr. Marcelo Galvão, an arm’s length party.
Core One Labs has licensed its proprietary technology to Vocan Brazil to make, use, and sell biosynthetic psilocybin, and any other commercial products made using the technology, within Brazil. Vocan Brazil intends to begin clinical trials with the biosynthesized psilocybin once Core One Labs has filed its patents. The trials will be the first step in bringing a psilocybin drug to market. Brazil has among the most permissive psychedelic laws in the world, which allows one to buy, sell, and consume mushrooms legally.
“Licensing Core One’s technology, to be used for production and clinical trials in Brazil is a major step for us,” stated Marcelo Galvão, CEO of Vocan Brazil. “I believe that Core One’s technology is going to provide us with a competitive advantage in the psychedelics space, and this partnership gives them access to an untapped South American market.”
The licensing agreement will have a term of 60 months and is subject to an automatic extension for another 60 months on the condition that royalty payments are $1 million or more during the initial term. A licensing fee of $250,000 is payable annually upon the market launch of a product related to the licensed technology. Additionally, a percentage of net profits from sales of licensed products will be paid by Vocan Brazil to Vocan Biotechnologies: 12.5% in the first year, 10% in the second year, and 7% of net profits in the third.
Brazil’s progressive psychedelic laws will provide Core One Labs opportunities not available in other countries with stricter psychedelic laws. Clinical research conducted by Vocan Brazil could allow Core One Labs to identify effective uses for their technology and provide valuable data or insights for any of their own future clinical research.
“We are extremely excited about partnering with an established pharmaceutical company, that will be funding the development of products using Vocan’s proprietary technology. Mr. Galvão’s track record as an accomplished biotech entrepreneur positions Vocan Brazil to be a leader in the psychedelic space in Brazil. Mr. Galvão’s commitment to this project demonstrates his confidence in Dr. Hancock’s ability to execute on producing biosynthesized psilocybin in a way that revolutionizes the psychedelic industry,” stated Joel Shacker, CEO of Core One Labs.
Since the announcement, Core One Labs stock price has dropped to $0.97.
Full disclosure: Core One Labs is an Equity.Guru marketing client.