Seedadelic going through and a private placement done recently at higher levels than where the price is now. Once it wakes up, this could be a nice little score
EGF Theramed acquires Seedadelic for shares
2021-06-09 00:11 ET - News Release
Mr. Doug McFaul reports
EGF THERAMED ACQUIRES SEEDADELIC
EGF Theramed Health Corp. has acquired Seedadelic Health Services Corp. pursuant to its previously announced definitive share purchase agreement, dated May 31, 2021.
About Seedadelic Health Services Corp.
Seedadelic is a private, Ontario-based, alternative medicine company, seeking to alleviate the stigma surrounding psychedelic drugs through the distribution of plant seeds, such as Argyreia Nervosa (Hawaiian Baby Woodrose) and Ipomoea Violacea (Morning Glory), that contain a naturally occurring compound known as LSA (D-lysergic acid amide). Seedadelic plans to operate a Web-based and mobile application, allowing users to register and purchase certain plant seed products on-line. The seeds are expected to be sold in a dispensary that carries a variety of plant seeds and will be distributed on-line through e-commerce, as well as through bricks and mortar retailers. The Seedadelic business model anticipates deploying its mobile application, which can be used as a platform for sellers of Morning Glory and Hawaiian Baby Woodrose seeds to purchasers in locations where such sales are legal. Initially, products are expected to be supplied on the app by Seedadelic, with the expectation that the app will eventually facilitate a dropshipping method of sales, where third parties sell their legal products on the app. Seedadelic's current assets are made up of intellectual property and approximately $450,000 in working capital.
About LSA
The psychedelic medicine market in North America has grown substantially over the last year and is expected to continue in the future with an expanding rate of growth. Lysergic acid amide (also known as ergine, d-lysergic acid amide, d-lysergamide and LSA) is a naturally occurring psychedelic substance of the lysergamide class. LSA is an ergot alkaloid and the main psychoactive constituent of morning glory seeds. LSA is chemically related to LSD and is said to produce similar effects. LSA was first described in 1932 as part of an investigation into the alkaloids found in ergot. In 1947, it was synthesized and tested for human activity by Albert Hofmann. The intramuscular administration of a 500-microgram dose produced a "tired, dreamy state with an inability to maintain clear thoughts." In 1970, LSA was detected as a constituent in Hawaiian Baby Woodrose seeds, which were being ground up into capsules and sold on the street as mescaline. Today, LSA is typically consumed through Morning Glory and Hawaiian Baby Woodrose seeds. Unlike most psychedelics, LSA occurring naturally in seeds is legal.
User reports describe the effects of LSA as primarily sedating and dreamlike, with a mild to moderate psychedelic component. The psychedelic effects of LSA occur inconsistently and are not directly comparable with the effects of classical psychedelics like LSD, psilocybin mushrooms or mescaline. LSA is described as primarily bodily and cognitive, with little visual effects.
Like other psychedelics, LSA is not considered to be addictive, and some consider it to be a legal alternative to LSD. LSA can be found naturally throughout the forests of this world, whereas LSD is the product of extensive lab work. Morning Glory seeds have a long history of ceremonial use among Mexican tribes, and the seeds are often chewed to extract the LSA they contain. Other psychedelics are currently only in the clinical testing stage and are not available for retail or customers, so no other similar products currently exist in Canada that offer a psychedelic experience while being completely legal. Seedadelic will look to operate in the psychedelic market prior to other services and products becoming available.
Transaction details
In consideration for the acquisition of all of the issued and outstanding share capital of Seedadelic, the company issued 15 million common shares to the existing shareholders of Seedadelic and 1.5 million common shares to an arm's-length third party that introduced the parties. The consideration shares and finder fee shares are subject to the terms of an escrow agreement, during which time they may not be transferred or sold until a date that is four months after the date that the company files a Form 51-102F4 business acquisition report on SEDAR in compliance with National Instrument 51-102 (Continuous Disclosure Obligations).
The acquisition is an arm's-length transaction as the company is not a related party to Seedadelic or any of its shareholders. The acquisition did not constitute a fundamental change for the company, nor did it result in a change of control of the company, with the meaning of applicable securities laws and the policies of the Canadian Securities Exchange. Within 75 days of closing the acquisition, the company will file a Form 51-102F4 (Business Acquisition Report) on SEDAR at the request of the Canadian Securities Exchange and in compliance with NI 51-102. The acquisition was approved by a majority of the company's disinterested shareholders at the company's annual general and special meeting of its shareholders held on April 28, 2021.
About EGF Theramed Health Corp.
EGF Theramed is a consumer technology company engaged in the provision of biomedical services for treating common health problems. The company is working to collaborate with other companies for medical technology, equipment protocols and laboratory standard operating procedures. Through the company's recent joint venture acquisitions, it has begun to research psilocybin and psychedelic extraction and processing for commercialization.
We seek Safe Harbor.