Silo will be giving up 12,762,325 shares priced at roughly two cents a share or approximately $255,246. The company also said it would pay approximately C$120,000 of Dyscovry’s founder’s debt in 12 equal monthly payments.
Dyscovry is a Toronto-based biotechnology company focused on biosynthetic manufacturing of psilocybin and its derivatives to treat irritable bowel syndrome.
With its research collaboration with Canadian federal government research laboratories, Dyscovry said that it intends to develop a biotechnological process for the production of psilocybin and its potentially novel molecule derivatives.
“The Dyscovry transaction has been highly anticipated by our shareholder base and a long time coming,” said Silo founder and CEO Mike Arnold.
Silo previously announced in May a letter of intent to acquire Dyscovry.
“As I have gotten to know the Dyscovry team over the last year, I have seen potential synergies far beyond what is within the four corners of the Dyscovry portfolio,” said Arnold. “I am thrilled to bring our networks together to add value to what we have built in Jamaica and intend to build in our home state of Oregon.”
The deal comes as Oregon is on the verge of deciding rules and regulations for the first legal medical psilocybin program
in the country.
Silo Wellness said it hopes to ultimately create a combined entity focused on pharmaceutical API revenue along with revenue from the CPG market via Marley One and through “psychedelic healing now” via the psychedelic retreat model.
Dyscovry said in May that its vision has been to create a pharmaceutical platform and exit strategy similar to what GW Pharma did with their cannabinoid manufacturing and clinical product.
Dyscovry also said that the transaction affirms Silo’s commitment to the psychedelic pharmaceutical space and is expected to add pharmaceutical R&D capabilities to Silo’s patent-pending metered-dosing formulations for psilocybin, DMT, mescaline, and 5-MeO-DMT, and its psychedelic retreat expertise to “help unlock the value of its strategic portfolio.”
“We are joining two teams that share a passion and vision for developing differentiated psychedelic healing therapies that advance science and transform the lives of patients,” said Dyscovry’s founder and president Brad Dottin. “I look forward to all that we intend to accomplish together as a combined organization.”
In addition to the acquisition, Silo also alerted shareholders that it would be hiring Bolt Media to provide social media support. It will pay Bolt $8,833 a month for the service. In addition to the social media work, Silo has hired Lifewater Media to the tune of $60,000 to introduce the company to the investment community. That money will go to a newsletter, advertising, copywriting, and design fees. Part of that money will be used to get attention for the psychedelic vacations in Jamaica.