Wesana Health (WESA.CN) announced a big change to its business plan earlier this week. They are acquiring Psytek Inc. for $21M CAD in Wesana stock. The acquisition of PsyTech will expand Wesana’s business to include clinical software-as-a-service (SaaS) platform ‘Tovana Solutions’, the integrated mental health practice network ‘Tovana Clinics’, and PsyTech Connect, the industry’s largest professional psychedelics practitioner community, conferences, and educational courses.
Tovana Clinics, rebranding as Wesana Clinics, is a chain of psychiatrist-led integrated mental health clinics focused on profitably delivering quality psychiatric care, inclusive of ketamine therapy, while also preparing for the delivery of other psychedelic therapies as they become available. The Wesana clinical network currently includes two flagship clinics with another under construction slated to open in Q3 and two more in the acquisition process forecasted to become Wesana Clinics in Q3. The number of clinics will ramp up post-acquisition to an estimated 12 clinics within the next 12 months.
I have previously written about the profitability around these new ketamine clinics, and how they have become a fast way for psychedelics companies to generate revenue.
Carcillo & TBI
Wesana’s main focus is TBI (traumatic brain injury). Wesana founder Daniel Carcillo was a victim of TBI himself and retired from the NHL in 2015 due to post-concussion syndrome after playing only 429 games at the age of 30. Since leaving the ice he has been outspoken about several topics like sexual abuses in the Canadian Hockey League, concussions and player safety in the NHL, the toxicity of the sports world, and his own mental health.
Carcillo said in an interview with Sports Illustrated, “There’s no room for introspection, into self-discovery, during your playing career, because nobody gives a s— about that.”
Carcillo has also been focused on researching and developing natural-sourced neurological treatments based on psychedelics to help with TBI symptoms, claiming mushrooms saved his life by ending his suicidal thinking. He then ventured to Peru to ayahuasca shortly after his hero’s journey psilocybin trip. The man is bought in.
TBIs are responsible for 2.8 million accidents and emergency department visits annually. According to Stanford Children’s Health, over 3.5 million sports-related injuries are reported annually among children in the U.S. and around 21% of all are TBIs. Thus, increasing cases of TBIs are anticipated to boost the product demand during the forecast period.
TBIs are permanent or temporary impairments to the brain that can be caused by a blow, bump, or shock to the skull. Major causes of TBIs include sports injuries, falls, gunshot wounds, domestic violence, and road traffic accident
Before this big acquisition Wesana Health laid out their main businesses objectives for the next 12 months, but those will surely be altered with the recent acquisition.
- Complete pre-clinical work and IMPD and IND filing and consultation process with Heath Canada and the FDA in preparation for in-human clinical work;
- Support patent filings and clinical work via (i) completing an investigational study on the loading and maintenance doses of psilocybin; (ii) pursuing an SAP from Health Canada to allow for government-controlled delivery of its psilocybin drug therapy to high-risk patients; (iii) pursuing a Health Canada Section 56 Exemption, on a case-by-case basis, to access psilocybin-assisted therapy for high-risk TBI patients; and (iv) preclinical work;
- Evaluating strategic partnerships (i.e. through acquisitions of psychiatrist run clinical network, technology, data collection, manufacturing and R&D opportunities)
- Building up its team of executives and scientific advisors; and
- Growing relationships with academic and research institutions and strengthening relationships with associations and advocacy groups responsible for supporting TBI in order to serve and lead clinical trial partners.
Wesana is an early-stage pre-revenue company at this point but that is also likely to change with the new upcoming ketamine clinics.
The share structure looks super tight so far.
Wesana Health has been assigned two filed patent applications featuring it (i) compositions of matter and therapeutic protocols for the treatment of traumatic brain injury and associated symptoms, including TBI-related anxiety, depression, PTSD and brain fatigue, and (ii) compositions of matter and therapeutic protocols for the treatment of migraines. Wesana Health has also submitted comments and evidence to Health Canada after Health Canada opened a 60-day public consultation on its intention to restore potential access to restricted drugs through the Special Access Program (“SAP”). The SAP allows healthcare professionals to request drugs that are not available for sale in Canada in cases where a patient has a serious or life-threatening condition.
From Mike Tyson to George Steinbrenner IV to Daniel Carcillo – Wesana Health has some pretty well-known names in the sports world. The company’s main mission is to use psychedelics to help people with TBI whether that be athletes, veterans, or anyone who has suffered brain trauma. In the sporting world, this has been a hot topic in recent years as leagues have had to adjust to the reality of frequent brain injuries to their players. It’s been a key issue in the NFL and NHL and in 2017 the NFL began new concussion protocols, which have been successful but, the numbers are still too high.
Brain trauma injuries can come up years after retirement as well, leaving players who maybe didn’t earn massive paycheques or save money well in a difficult spot, along with veterans. But even with access to the best health care, there is still room for improvement, and Wesana believes psychedelics could be that next big thing. In January the company announced it had raised approximately $4.2 million USD through a private placement.
Mike Tyson is an investor in the company, and when he tweets to his 5 millon+ followers he says ‘we’ when referring to Wesana. George Steinbrenner IV, son of former Yankee owner Hank Steinbrenner was also named to the Board of Directors in March. Wesana founder Daniel Carcillo was an NHL champion with the Chicago Blackhawks.
We are excited to announce the acquisition of PsyTech, which will add three major components that will expand and enhance our current business @wesanahealth @Reddit @Aloumis @ChadBronstein pic.twitter.com/LYeE3AWP3l
— Mike Tyson (@MikeTyson) July 14, 2021
So basically networking within the sports world shouldn’t be an issue, and gives the company a huge advantage over other competitors in the sports science space. As Wesana continues to build its network of high profile people the advantage they will have in marketing their brand and getting awareness to their company will be huge. Advertising rules and regulations when dealing with illegal substances are always tricking whether you are running Google Ads, Facebook Ads, or any PPC campaign. Wesana’s access through its team and investors will be invaluable as they scale their company and look for new ways to expand and talent to bring on board.