Technology-based Company.
Engaged in advancing innovative solutions for large-scale market applications
- February 8, 2022
Tel Aviv, Israel, Feb. 08, 2022 (GLOBE NEWSWIRE) — Medigus Ltd. (Nasdaq: MDGS), a technology company engaged in advanced medical solutions, innovative internet technologies and electric vehicle and charging solutions, announced today the expansion of its healthcare activities by signing an investment agreement with Clearmind Medicine Inc. (CSE: CMND, FSE: CWY0, OTCMKTS: CMNDF), a psychedelic pharmaceutical biotech company. In accordance with the agreement, Medigus will invest US $1.25 million (or CAD$1.6 million) in exchange for approximately 2 million units, comprised of shares and warrants. The shares purchased represent 5.02% of Clearmind.
Clearmind is a psychedelic pharmaceutical biotech company focused on the discovery and development of novel psychedelic-derived therapeutics to solve widespread and underserved health problems, including mental health, alcohol use disorder, binge eating and depression.
The Psychedelic Drugs Market size is projected to reach USD $10.75 billion by 2027, from USD 4.75 billion in 2020, growing at a CAGR of 12.36% during 2021-2027, according to a report from Research And Markets. Another report from Data Bridge Market Research revealed that the growing acceptance of psychedelic drugs for treating depression is also contributing to the increase in market value.
Clearmind’s patent portfolio consists of four utility patent families, which includes seven approved patents and 13 pending applications.
Clearmind and Medigus intend to form a joint venture in the food industry, based on Clearmind’s unique psychedelics intellectual property. The joint venture expects to focus on the product development of food supplements, on the basis of the IP, as well as obtaining the necessary regulatory approvals to enable the registration and distribution of the products based on such IP in certain targeted countries.
As part of the agreement, Medigus will be issued approximately 2 million units, comprised of one share of common stock and one warrant, at a subscription price of CAD$0.80 per unit. Each warrant will be exercisable for a period of 18 months into one additional share of common stock at a price per share of CAD$2.00. US $750 thousands (CAD$960,000) of the investment amount will be paid for in cash and US $500 thousands (CAD$640,000) of the investment amount will be paid through the issuance of Medigus’ American Depository Shares (ADS), at a price per ADS ofUS$1.20.
In addition, Medigus will be entitled to 10% of the initial equity of a potential venture in the area of psychedelics, in connection with a research project currently conducted according to an agreement between Clearmind and the commercialization arm of a leading Israeli academic institution.