The new company was created as the result of a three-way merger between CannaGlobal, Sansero Life Sciences, and Rise Wellness.
The co-founder of Tokyo Smoke—who has also been called "the godfather of Canadian Cannabis"—has announced that he is getting into the psilocybin industry.
Lorne Gertner has confirmed that he will become the chairman of a new company—which will be known as CannaGlobal Wellness until the organisation decides on a permanent name—that is devoted to producing pharmaceutical products using the hallucinogenic drug psilocybin.
Ultimately, we want to bring to the marketplace novel pharmaceuticals designed as replacements for antidepressants and stimulants for ADHD. That is where we will be taking the bulk of those funds and applying it to the pre-clinical trial work as well as the phased trials associated with getting approvals from the appropriate regulatory bodies. That would be important to bring these novel pharmaceuticals to life and to launch them in the marketplace." CannaGlobal Wellness Co-Founder and CEO, Steve Sadoff
The company was formed through a merger between Gertner's other company, CannaGlobal, and Sansero Life Sciences and Rise Wellness. The co-founder of Sansero, Steve Sadoff, is already slated to take on the role of CEO.
According to Gertner, the company decided to jump in on the psychedelics industry after observing that the volume of studies focused psilocybin was considerably larger than the body of research into cannabis.
"The interesting thing we are finding is that it is a pharmaceutical company but in psychedelics it is not as expensive as the typical drug development process," Gertner said.
"I was looking to, call it reinvent myself and I was looking to do something sort of new and I made a shopping list of things that were important to me and what has always been important to me in business was making the world a better place."
"Doing it in my own backyard, meaning could I do it in Canada? Was it a billion-dollar opportunity? Could we make people's lives better? I really sat down and saw that [psilocybin] meets all of that criteria and I was all in."
Previous studies have already found evidence that suggests psilocybin could be used as a method of treating anxiety and depression, although thus far no mass market drug containing the chemical has been legally authorised for use.
However, CannaGlobal Wellness believes that this may change in the coming years, and if current projections prove accurate—which are based largely on comparisons to the $15 billion global antidepressant market—then the legal psilocybin sector could prove to be a highly profitable industry.
"The novelty lies within the efficacy of these molecules being brought together in very specific ratios," CannaGlobal Wellness CEO Steve Sadoff said.
"Which we are ultimately finding is more effective and also safer when compared to other antidepressants that are currently available."
This pot stock could reach new heights in 2020 due to Coronavirus
The COVID-19 pandemic is showing no signs of slowing down, and as global markets enter meltdown many cannabis companies are feeling the effects of capital crunch.
While the market crash will continue for some time, it represents a golden opportunity for investors who are capable of riding out the volatility until share prices rally.
Luckily, one pot stock has developed antimicrobial drug that can already treat two superbugs while limiting their ability to develop antibiotic resistance.
Investors can also start picking up shares at rock bottom prices, as global investor sentiment continues to dampen thanks to COVID-19.
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