Ironically known by the ticker “COOL” in Canada – Core One is anything but, as they remain on fire with their recent product development methods and acquisitions. PS: for the Americans out there, you can find them with the symbol “CLABF”.
A few recent highlights:
- Core One’s Victoria subsidiary, Vocan Biotechnologies, has completed the development of its psilocybin detection and quantification methods, allowing for the production of its debut biosynthetic producer strain;
- Core One is preparing the filing of patent applications for its biosynthetic production process;
- Core One made its U.S. debut with an intent to acquire KICT (Ketamine Infusion Centers of Texas Inc.), a Ketamine-based health and wellness clinic;
- An increasing number of billionaire investors and state legislators are recognizing psilocybin as a viable treatment for treatment-resistant mental illnesses.
If any of this seems confusing to you, don’t worry, we’ll help explain what psilocybin detection and quantification means in just a moment.
The First Proprietary Producer Strain Is Underway
As wholly owned subsidiary Vocan Biotechnologies Inc. completes the psilocybin detection and quantification process (in layman terms, this means identifying how much psilocybin occurs within psychedelic mushrooms), Core One is now able to proceed with the production of their first, proprietary psilocybin producer strain.
When dissecting different strains of mushrooms, Vocan uses an analytical chemistry method called high-pressure liquid chromatography (HPLC) to separate, identify, and measure the total presence of psilocybin in a mixture. This allows for precise observation and creation of the “perfect” strain.
Not only is this method the key to producing Core One’s producer strain, but it also helps identify the most effective strategies to scale up in the future, utilizing its ability to obtain the most optimal production methods for synthetic psilocybin. The cost and time required for this process is significantly lower than any other, more traditional synthetization method.
This biosynthetic approach reflects a huge cost advantage for Core One upon completion, saving thousands of dollars per gram of API-grade psilocybin. Scalability potential will be at an all-time high and the “moat” of intellectual property protection will also be present, since their signature strain will be patent-protected.
Planting a Foot in the Deep South
Core One has entered a definitive agreement to acquire Ketamine Infusion Centers of Texas Inc. (KICT), completing its debut health and wellness transaction in the United States. Already having access to 1 of 3 licensed psychedelic labs in Canada, this move is crucial in establishing their foothold throughout all of North America.
The transaction involved Core One issuing 210,000 common shares, as well as a third-party finders’ fee of 21,000 shares, to interest holders of KICT in exchange for the entire asset. These shares are part of a pooling agreement that prevents the disposition of said shares until February 14, 2022. The finders’ shares will pertain to a 4-month hold period from the date of issuance.
With a large recent wave of support and acceptance, Ketamine has been shown to be effective in the treatment of addiction as well as mood disorders, such as bipolar, PTSD, depression, and OCD. With over 100 Ketamine Clinics currently operating in the U.S., there is a clear-cut paradigm shift happening as the U.S. continues to increase its use of Ketamine, as well as other psychedelics, to treat a plethora of disorders.
The key advantage for Core One with this acquisition is that it allows them to establish a roster of patients in Texas who will now have access to their psychedelic assisted psychotherapy, with the use of their novel delivery system of synthetically produced medical-grade psilocybin. This means once the U.S. legalizes psychedelics, Core One is one step ahead of its Canadian competitors in establishing themselves within this enormous market.
How huge is this market? For starters, the psychedelic drug market in the U.S. alone is projected to reach $6.8 billion by 2027, which puts it $2 billion ahead of 2019. At a 16.3% CAGR (compounded annual growth rate) from 2020-2027, the market is moving fast, which is why the team has been moving “faster than anticipated,” according to Core One CEO, Joel Shacker.
As the World Is Demanding Alternative Medicine, Core One Aims to Deliver
Often dubbed the next major pharma-disrupter, psychedelics are being recognized and praised more and more as time goes on. From State legislators to billionaire investors and medical establishment influencers, psychedelics are becoming accepted as a viable treatment for mental illnesses that have proven to be treatment-resistant outside of your standard, “band-aid solution” over the counter products.
According to Venture Capitalist Kevin O’Leary, “Psychedelics are finally having their day in the sun — not as recreational drugs but as medicines to address society’s problems with mental illness and addiction — and I’m one of the many Wall Street investors who are now backing them.”
With a market-quoted value below their peers, patents pending for producer strains and sublingual compound delivery strips, and a cost-advantageous infrastructure, Core One remains well positioned to dominate a market that the world needs.
How bad does the world need psychedelics? Well, let’s look at a few stats.
The medical world has failed many attempts to crack the codes of PTSD, depression, and anxiety for decades now. The medicines used today are simply variants and derivatives of drugs produced as far back in the 1950’s, when tobacco was recommended by doctors.
The medications available from big pharma today do nothing but barely mask the symptoms of these mental illnesses, not to mention the undesirable amount of side effects that they come with. Insomnia, low libido, suicidal impulses… the list goes on. This all taking into consideration that the medications don’t even solve the problem, they require a lifelong prescription!
In the U.S., 75% of people on conventional anti-depressants end up tossing them out altogether (reportedly primarily due to the persistent side effects), and relapse rates sit at a staggering 40%-70%. This is nothing short of a failure to properly treat what’s often known as the most detrimental condition in America.
With the wheels geared up and ready to roll, and a market that is begging for retribution for the sake of the millions of mental health patients, we feel good about this strategic play that utilizes a wide variety of resources in a hot sector that aims to improve the quality of life for people.
Disclaimer: Core One Labs Inc. is an Edge Communications Client, and we own shares in the company.