BC Craft Supply Co (CSE: CRFT) is looking to do anything to remain relevant, with the craft cannabis-focused company announcing that it has signed a binding letter of intent to acquire Ava Pathways, a psilocybin research and development company. The company has attempted to justify the transaction to shareholders by stating that it is “comprehensive solution partner to other plant-based craft companies while advocating on their behalf.”

Ava Pathways, whom is based in Vancouver, is currently focused on the therapeutic scientific benefits of “proprietary formulations using compounds from mushrooms.” The company reportedly “brings exceptional access to tested and standardized naturally-derived and synthetic materials which allows for the production of superior psychoactive and non-psychoactive formulations.”

Furthermore, the company reportedly has “over twenty collective years” of experience within the pre-clinical and clinical experimentation programs that are focused on providing patient and data-driven treatment that combines holistic personalized treatment plans, therapy, and education. None of these pre-clinical and clinical programs were listed by the company however.

Matthew Watters, CEO of BC Craft, further tried to justify the transaction by stating that the company will look to commercialize high end brands within the psychedelic space when the legal framework will allow. In the interim, its unclear what purpose the transaction serves at all, given the current state of psychedelic legalities in Canada.

Under the terms of the transaction, BC Craft Supply is to issue 38.1 million units at a price of $0.105 per unit to acquire Ava Pathways, subject to a definitive agreement. Each unit is to consist of one common share and one common share purchase warrant, valid for a period of two years, with an exercise price of $0.14 per common share.

BC Craft Supply last traded at $0.14 on the CSE.

Information for this briefing was found via Sedar and BC Craft Supply Co. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

The post BC Craft Supply Becomes The Latest Cannabis Operator To Move To Psychedelics appeared first on the deep dive.