Debra Borchardt
Wesana Health Holdings Inc. (CSE: WESA)(OTCQB: WSNAF) has sold its subsidiary Wesana Health Inc. and the SANA-013 intellectual property to Lucy Scientific Discovery Inc. (Nasdaq: LSDI) for consideration of 1,000,000 common shares of Lucy and $570,000 in cash. The deal is expected to close in the second quarter of 2023.
Wesana had told investors in June 2022 that it was considering selling assets as the company reported losses and little revenue. In September, it sold its Management Services Organization for $2.1 million to APS Innovations. Then in December, the company received a short-term loan of $250,000.
Wesana‘s CEO and Chairman Daniel Carcillo will join Lucy’s team to integrate SANA-013 within Lucy. Wesana also announced that as part of a planned transition, Mr. Zed Wang has resigned as the Company’s Chief Financial Officer and Corporate Secretary, and Mr. Winfield Ding has been appointed as the Company’s Chief Financial Officer and Corporate Secretary, effective immediately. Mr. Wang will remain available to ensure a smooth transition.
The company said in a statement that SANA-013 is a proprietary combination of psilocybin and CBD being developed for the potential treatment of several mental health/CNS-related conditions, including Major Depressive Disorder (MDD), Migraine, Episodic Cluster Headaches, and Trigeminal Neuralgia (TG). This novel combination allows both drugs to act within the brain via complementary pathways. Specifically, SANA-013 is thought to work, by “rewiring” neuron connections in the brain while also inducing a potent anti-inflammatory effect that, together, leads to anti-depressant effects.
“We have worked diligently over the previous two years to develop novel therapies for the treatment of major depressive disorder and have made some significant advances in our drug development program. Broader challenges in the macro-environment led us to consider strategic options, and we believe there is significant value held in continuing development of SANA-013,” commented Daniel Carcillo, Chief Executive Officer and Chairman of the Board.
Transaction Details
- The Transaction (as defined below) provides an opportunity for the continued development of SANA-013 through the next phases of the US FDA regulatory process and for the Company to have economic exposure to any positive advancements in any such future research and development efforts by Lucy.
- The Company will also have economic exposure to the broader Lucy asset portfolio and pipeline, including a Canadian Licensed Dealer conducting research on various compounds.
