Core One Labs (COOL.C) announced they have acquired all outstanding share capital of Bluejay Mental Health, a specialty medical clinic with an integrated telehealth platform.
Bluejay’s integrated telehealth platform allows them to deliver care, diagnosis, and treatments to patients remotely using a secure telecommunications platform. This acquisition broadens Core One’s patient network, allowing them to access a telehealth model that will provide them with real-world evidence on the efficacy of treatments. It will also assist them with the rollout of future psychedelic therapies.
The details of the acquisition are as follows:
Core One issued (i) 9,150,000 common shares (the “Consideration Shares”); and (ii) 6,000,000 common share purchase warrants (the “Consideration Warrants”) entitling the holders to acquire a further 6,000,000 common shares of Core One for $0.05 per share.
1,650,000 of the Consideration Shares are subject to a voluntary pooling arrangement from which:
(a) ten (10%) percent will be released upon completion of the Transaction;
(b) a further thirty (30%) percent will be released on June 11, 2021;
(c) a further thirty (30%) percent will be released on September 11, 2021; and
(d) a further thirty (30%) percent will be released on December11,2021.
The Company is at arms-length from Bluejay and its shareholders.
In connection with the completion of the Transaction, the Company has issued 200,000 common shares split evenly between two arms-length third-parties who assisted with facilitating the Transaction.
Bluejay Mental Health, founded in 2011, was a pioneer in the medical cannabis industry and assessed thousands regarding the appropriateness of alternative medicine for the treatment of a variety of ailments and symptoms, such as PTSD or chronic pain anxiety.
Core One no doubt hopes to repeat Bluejay’s clinical success using alternative medicines with their proprietary psilocybin ‘Thinstrip’ technology. Although Bluejay has mostly used cannabis-based psychedelic therapy throughout their history, their experience in navigating a changing regulatory landscape while delivering quality patient care will be a great asset for Core One Labs.
In addition to Bluejay’s experience, their acquisition provides COOL with an opportunity to connect with the nearly 80,000 patients in their network. Because of the nature of Bluejay’s clientele, these patients are the most likely to benefit from the kind of alternative treatments being developed by Core One.
“Bluejay’s extensive patient and physician outreach, experience in navigating the regulatory environment when it comes to treatments for patients opens the door for Core One’s future developments in psychedelic medicines in Canada. There are very few clinics that rival Bluejay’s experience in working with Health Canada to establish best practice treatment plans in the alternative health space,” stated Joel Shacker, CEO of Core One Labs.
Following this news, the stock opened up over 9%, reaching $1.17 before coming down to $1.14.
Full disclosure: Core One Labs is an Equity.Guru marketing client.