Revive Therapeutics Acquires Rights To Psilocybin Assets For C$10M - Revive Therapeutics (OTC:RVVTF)

Revive Therapeutics Ltd RVVTF has entered into an asset purchase agreement with Newscope Capital Corporation to acquire the full rights to PharmaTher Inc’s intellectual property relating to psilocybin, an active ingredient found in species of mushrooms and Lysergic acid diethylamide (hallucinogenic drug).
Revive will pay aggregate consideration of up to C$10 million under the agreement, including C$3 million in cash will be paid on the closing date, C$4 million will be paid via Revive stock, and up to C$3 million as milestone payment.
In addition to the purchase price, Revive will also pay Newscope a low single-digit royalty on all future net sales of products derived from the acquired assets.
The assets sold under the arrangement includes several IP, including all intellectual and work property derived from pre-clinical research with the National Health Research Institute in traumatic brain injury and stroke, as it pertains to psilocybin, as well as the data related to the target goal of obtaining FDA orphan drug designation. Also included are three key provisional patent applications filed in the U.S.
Last month, the company closed an offering of 40 million units at $0.50 per equity unit for gross proceeds of $20 million.
Price Action: RVVTF is down 6.2% at $0.50 in market trading hours on the last check Wednesday.