Hollister Biosciences Signs LOI to Acquire Legal Medicinal Mushroom and Psilocybin Firm Alphamind Brands
Alphamind is Developing Mushroom Products and Conducting R&D for Psilocybin Pharmaceutical Applications
Hollister Biosciences (CSE: HOLL) (OTC: HSTRF) (FRA: HOB) announced this morning the signing of an LOI to acquire Alphamind Brands, an exciting company operating in the legal medicinal mushroom and psilocybin markets. The deal to purchase Alphamind was signed on March 9th and once closed, Hollister will officially enter the emerging psychedelics sector.
Based in Canada and the United States, Alphamind Brands is currently developing several exciting new medical mushroom products as well as conducting research and development (R&D) for Psilocybin pharmaceutical applications. In conjunction with accredited universities, Dr. Nikos Apostolopoulos is leading Alphamind’s R&D initiatives to explore psilocybin based pharmaceutical treatments. The goal of Alphamind’s R&D is to create psilocybin based compounds for drug development. Psilocybin is the active hallucinogenic compound in magic mushrooms.
Alphamind has a number of SKU’s ready to ship which includes: cordyceps, lion’s mane, chaga and reishi mushroom-based: liquid cordyceps, concentrated mushroom powder, tea and chocolate. The company also has many new products currently under development, such as syrups, elixirs, cold beverages and nasal spray.
The Alphamind acquisition is undoubtedly a transformational deal for Hollister and, upon closing, will diversify its operations to include Psychedelics. Hollister founder and CEO, Carl Saling shared his thoughts on today’s major announcement:
“We are very pleased to have entered into an LOI to complete this very exciting acquisition. It is a fundamental value of our company to improve the overall health and performance of our customers through our high-quality products and the health benefits associated with medicinal mushrooms are tremendous. Not to mention, it is our continual objective to broaden our product scope and Alphamind, with its experienced management team, is a perfect foothold for us in the fast-growing market for medicinal mushrooms and complements our existing cannabis and hemp-based product offering.”
As per the terms of the all-stock deal, Hollister expects to pay roughly CDN $1.2 million in HOLL stock to purchase the psychedelics firm Alphamind. The transaction is subject to customary closing conditions, and once closed, Hollister will not be assuming any long-term debt from the acquisition, nor will there be any changes to Hollister’s management or board of directors.
“I think we have found a great partner in Hollister. We have medicinal mushroom-based product SKU’s ready to ship, and R&D is underway to develop an exciting IP portfolio surrounding psilocybin based pharmaceutical treatments. Being under the Hollister umbrella will allow us to access additional markets and leverage their existing manufacturing and distribution infrastructure and will be a fundamental part of the future growth of our business,” said Robert Birmingham, CEO of Alphamind Brands.
HOLL Stock Price Action & Chart
Hollister has made all the right moves, and today’s surprise announcement to enter the burgeoning psychedelics sector would have normally sent HOLL’s share price soaring. Unfortunately, market timing is everything, and Hollister simply got unlucky that today’s transformational news happened to come on a day where global financial markets plummeted again.
The recent stock market correction has caused shares of nearly every company to drop substantially. While it may be hard to stomach at the moment, nothing lasts forever. Rather than panic sell now after such a massive market pullback, investors should be looking to buy stocks at new attractive valuations.
As we know from history, when markets are at their worst, opportunities to profit are at their highest. As the old contrarian saying goes: “The time to buy is when there’s blood in the streets.” Markets will always rise again, and when they do, stocks like Hollister could generate multi-bagger returns from these low levels.
Hollister Biosciences is a paid client of The Cannabis Investor.
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