Early stage medical biotechnology company specializing in enhancing optimal health Cava Healthcare Inc. announced having entered into an agreement with Mynd Life Sciences Inc. (CSE: MYND) (OTCMKTS: MYNDF) to sell its right, title and interest in the intellectual property rights for use of psychedelics to treat dementia to Mynd Life Sciences.
Mynd Life Sciences is a life sciences company specializing on developing novel psychedelic drugs for mental conditions. The companies made this announcement late last week and the agreement is inclusive of all future rights relating to use of psychedelics to treat Alzheimer’s disease and other dementias across the world.
According to the agreement, Mynd will pay Cava with 450,000 of its common shares at a price of 85 cents per share plus an additional $120,000. Mynd shall further pay an annual royalty of equal to the greater of $240,000 or 4% of the net sales of any product or service involving the acquired asset to a third party.
The close of this acquisition deal is subject to Mynd securing an approval from Canadian Securities Exchange (CSE) for listing of its shares. The chief executive officer of Cava, Theo Warkentin, says this deal is a good indication of the company’s confidence in testing, patenting and licensing advances in the healthcare sector.
“Mynd is an innovative industry leader in psychedelic psychotherapy, therapeutics and diagnostics. The company is uniquely positioned to pursue the effectiveness of psilocybin and other psychedelics for treating dementias. This agreement demonstrates positive results from the Company’s business approach of testing, patenting, and licensing/selling advances in healthcare and medicine,” said the CEO.
