Core One Labs (COOL.C) announced they have reached a definitive share purchase agreement which will see it acquire all outstanding share capital of Akome Biotech.
Akome Biotech’s goal is to develop psychedelic-based pharmaceuticals to help patients overcome specific illnesses. They currently have four provisional matter of composition patents: two DMT-based formulations targeted towards the treatment of strokes and Parkinson’s Disease, one psilocybin-based formulation for Alzheimer’s Disease, and one ketamine-based formulation for depression.
The global stroke management market is growing at 7.5% CAGR and is estimated to reach $36.7 billion USD by 2023. From 2015-2018, more than 12% of American men and women over 80 years old suffered from a stroke.
The global Alzheimer’s treatment market is also expected to grow at a substantial rate in the coming years, increasing at a 9.2% CAGR and reaching $13.57 billion USD by 2027. As baby boomers continue to age, the number of people 65 and over has been rapidly increasing, growing by over a third from 2010-2020. Most people who end up with Alzheimer’s develop it later in life.
Akome is providing innovative solutions for diseases that affect older generations, which is a smart choice considering the US’s growing elderly population.
“This acquisition will put us at the forefront of research into the use of psychedelics for treatment across multiple diseases, elevating our company’s portfolio to be comparable with the largest company in the space. Akome’s seasoned management team has experience taking products from their development stage through commercialization. Their current pipeline of four provisional matter of composition patents have us very excited at their prospect of developing into commercial products to help people suffering with Alzheimer’s Disease, Stroke, Parkinson’s Disease and Depression, opening us up to a multibillion dollar treatment market,” stated Joel Shacker, CEO of Core One.
COOL’s press release celebrated Akome CEO Dr. Santiago Ferro’s “extensive experience in leading clinical research teams”. They praised the fact that Dr. Ferro has been involved in all the life all aspects of start-ups and product life cycle: from development to clinical strategy to marketing.
The deal between the two companies would see Core One gain all outstanding share capital of Akome, and in return, Core One is required to issue 3,500,000 common shares to Akome’s shareholders. At the time of the agreement’s announcement, that would place the sale’s value at $3,325,000.
Core One also announced yesterday that they were anticipating a delay in the filing of their financial statements.
Following the news, Core One’s share price declined slightly and is currently trading at $0.92.
Full disclosure: Core One Labs is an Equity Guru marketing client.