As California moves to decriminalise psychedelics, Creso Pharma’s (ASX: CPH) soon-to-be subsidiary Halucenex Life Sciences has signed a letter of intent with Canadian listed Sixth Wave Innovations to work together on developing psilocybin separation technology for research and development.
Sixth Wave has created a nanotechnology that uses molecularly imprinted polymers (MIPs) for imprinting, capturing and releasing substances at a molecular level.
According to Creso, Sixth Wave’s technology is more efficient and yields purer end product or detection.
“Sixth Wave has developed fully scalable systems underpinned by MIPs, which are expected to replace antiquated and traditional extraction processes delivering considerable improvements including cost savings and higher yields,” Creso noted.
Under the LoI, Halucenex and Sixth Wave hope to execute a binding agreement to underpin collaborative work on identifying target molecules to be purified and develop psilocybin separation.
Sixth Wave will generate the MIPs for use in the process.
Both companies will collaborate on developing beads and columns to help produce psilocybin isolate from distillation – paving the way for Halucenex to create a pure psilocybin for research and development and accurate dosing.
The companies will also work together on beads and columns for other wellness components of psilocybe mushroom strains such as baeocystin and norbeocystin.
Creso said this would allow Halucenex to research the health and wellness benefits of these molecules without the hallucinogenic effects of psilocybin.
Halucenex founder and chief executive officer Bill Fleming said the agreement with Sixth Wave was an important step in providing the company with another avenue to better understand the use of psychedelic compounds for a range of treatments.
He added the company looked forward to using Sixth Wave’s patent-pending technology to further Halucenex’s research and development initiatives including clinical trials and future product development.
California moves to decriminalise psychedelics
As Creso grows its psychedelic industry exposure in North America through Halucenex, its welcomed California’s regulatory move to decriminalise psychedelics in that state.
California’s Senate Public Safety Committee approved a bill last week that would make it legal for a range of psychedelic substances to be used in adults over 21.
Creso noted the bill was introduced to “progress a more health-focused approach to the use of psychedelic compounds and to address the current mental health crisis in the US”.
“Recent legislative shifts in California highlight the massive opportunity that Halucenex and Creso have, and this agreement is going to provide a strong foundation for us to capitalise on a highly lucrative and emerging market segment,” Mr Fleming said.
Creso non-executive chairman Adam Blumenthal said the company anticipates there will be a “considerable legislative shift” allowing the use of psychedelic compounds – similar to the softening of regulations in the cannabis space.
He added Creso was poised to benefit from the shift through its acquisition of Halucenex.