Has a proverbial gladiatorial arena of merging begun in the psychedelics industry? Matthew ‘Whiz’ Buckley, former Top Gun fighter pilot, executive of Wall Street, and the host of Max After Burner Podcast joins the table of Trade To Black today. Subject of discussion: the recent announcement of clinical stage biopharmaceutical company Cybin (NYSE: CYBN) to acquire U.K.-based Small Pharma (TSXV:DMT).
Under the terms of the Transaction, Small Pharma shareholders will receive 0.2409 common shares of Cybin for each share of Small Pharma held. The exchange included ratio implies consideration of approximately $0.10 per Small Pharma share based on the closing price of the Cybin shares on the Cboe Canada exchange on August 25.
But what does this mean – not just for investors, but for the companies in the psychedelics industry itself? Is this a wakeup call that a new era is beginning in the space? Anthony Varrell wouldn’t be surprised in the least if companies like Cybin and Atai have other prime psychedelic companies targeted on their lists. With the readings coming out soon, the time to make MDMA deals is right now.
Certainly, it seems like there’s some risks inherent for investors trying to invest in single names now. Buckley says it could be difficult to figure out who will come out on top and suggests the possibility of looking at some of the ETFs such as PSIL.
The quality of the investors involved in the COMPASS deal to purchase shares has been surprising. This is a company in which a Phase 3 trial is only just set to begin. It will be interesting to see what happens going forward.
We’ve known that service takes a toll on members of all branches of the military, but retired pilots may have some unique difficulties. In a startling revelation, The Washington Post is exposing an investigation by the FAA uncovering pilots falsifying vital medical records to retain their positions in the cockpit. Buckley weighs in on the topic and explains how we got here in the first place.
