PharmaDrug, a Toronto-based specialty pharmaceutical company, has entered a definitive agreement to acquire SecureDose Synthetics, a synthetic formulation company in an all-share transaction to strengthen its R&D capabilities. SecureDose will become a wholly-owned subsidiary of PharmaDrug upon the completion of the acquisition, which is expected to close in early November 2023, subject to board and regulatory approvals.

Under the terms of the agreement, each SecureDose share will be exchanged for one PharmaDrug share. Furthermore, the SecureDose warrants and finder warrants will enable holders to acquire PharmaDrug shares at a price of USD 0.10 before September 22, 2025. The holders of SecureDose securities before the acquisition will collectively own approximately 38% of PharmaDrug (or 43% when including the conversion of warrants), and the control of PharmaDrug would not change.

Analyst QuickTake: As M&As in the psychedelic industry persist, this would be PharmaDrug’s third acquisition. It acquired Super Smart , which focuses on the development of psychedelic compounds in June 2020, and Sairiyo Therapeutics , which focuses on developing novel treatments for neurological disorders in February 2021. The acquisition of SecureDose will complement PharmaDrug's growth strategy to advance its product pipeline by adding the capability to develop its own formulations, potentially leading to shorter time frames for commercialization and revenue opportunities.