Pure Extracts (CSE: PULL) has entered into a letter of intent for a proposed joint venture with Psyence Group (CSE: PSYG). The proposed venture is to be focused on the extraction of psilocybin from mushrooms.

The venture partner, Psyence, is one of the first commercial psilocybin cultivation and extraction facilities operating under a federally legal framework. The company is based in South Africa, where it operates this facility and focuses on researching opportunities for the psychedelic substance, including palliative care, neuroscience, drug development and neurology. The firm also has select operations in Lesotho and Jamaica.

More specifically, the proposed venture is to develop “superior techniques” for the extraction of psilocybin from psychedelic mushrooms, as well as the development of advanced formulations. These advanced formulations are to be focused on the long-term treatment of psychological trauma and related mental health consequences, with the venture having the near-term goal of participating in a Canadian-based human clinical trial.

“This partnership with Pure Extracts will facilitate the importation of our standardized psychedelic mushrooms into Canada, giving us the opportunity to further optimize extraction methods and produce advanced products needed for safe clinical research. Our companies share the vision of providing the highest quality and most innovative psilocybin products for Canada, as evidenced by our facilities being constructed to GMP standards, and our commitment to rigorous scientific and clinical research for the development of transformational treatments for mental health disorders, with a particular focus on oncology palliative care.”

Dr Justin Grant, Chief Scientific Officer for Psyence

A timeline for the signing of a definitive agreement was not provided by either firm.

Pure Extracts last traded at $0.435 on the CSE.


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