Silo Wellness Inc. SILO (FRA:3K70) confirmed Thursday it plans to enter a patent licensing agreement with Jungle Med Inc., a health and wellness company operating in Latin America.
The psychedelics company signed a binding letter of intent via a wholly-owned subsidiary for a multi-year patent licensing deal to exclusively produce, market, distribute, and sell its patent-pending metered-dosing psilocybin nasal spray in Colombia and Brazil.
The letter of intent specifies an upfront licensing fee of $250,000, a five-year term with automatic renewal provisions (providing sales, distribution and advertising expectations are fulfilled upon and/or exceeded), and royalty provisions.
Silo explained that metered-dosing ingestion options with quicker uptake speed are necessary as they can help avoid accidental high-dosing - when a consumer takes another dose before even experiencing the effects of the first one. According to the company, smaller doses of psychedelic mushrooms may help a consumer by providing them with all the advantages of psychedelics, without a psychedelic “trip” experience.
“Silo Wellness was created to enhance wellness through psychedelics and functional foods,” Douglas K. Gordon, chief executive officer of Silo Wellness stated. “The Company’s patent-pending nasal spray makes psilocybin easier to access, administer and ingest. One of the inherent challenges with ingesting psilocybin mushrooms orally is the discomfort it can cause to one’s digestive system; however, our nasal spray solves this problem through bypassing the digestive system and entering the bloodstream through the nasal membranes.”
Why It Matters
This is Silo’s first commercial transaction for its new intellectual property.
Gordon further added that this deal takes the company's intellectual property beyond Jamaica, marking its expansion into Latin America.
Dr. Beverly Richardson, chief executive officer of Jungle Med, noted they trust the power of nature and plants, making this partnership a natural decision.
In March, the Oregon-based psychedelics company went public via reverse take-over of FlyOverture Equity Inc., listing its stock on the Canadian Stock Exchange.
That same month, Silo confirmed it has obtained exclusive worldwide rights to work with the family of Bob Marley to brand, advertise, and sell a special line of functional and psychedelic mushroom products.
Having the Marley name attached to the company’s products may help its popularization in Jamaica, where Silo already owns a research and mushroom cultivation facility, and organizes psilocybin retreats.
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