Synaptogenix Increases Stake in PsyaBio

Stock.adobe.com

Hallucinogenic drugs are big business.

Over recent years, the life sciences industry has begun to embrace the study and use of hallucinogenic drugs to treat a variety of conditions. Progress was initially slow, as many in the industry, along with investors, seemed hesitant to embrace the medications due to the stigma attached to them. As more studies prove the efficacy of these drugs, however, it appears that hesitancy is slowly receding.

In the latest example of the life sciences industry showing that its ready to put money behind these drugs, Synaptogenix, Inc. announced that it is increasing its stake in PsygaBio, a psilocybin drug discovery company.¹ The company is making this move through it partnership with Cannasoul, of which PsygaBio is a subsidiary of.

In a press release, Synaptogenix CEO Dr. Alan Tuchman said, “In addition to the continuing work on our Bryostatin program, our mission and purpose extends to funding research on other innovative assets and/or potential acquisitions of asset rights. Psilocybin and psilocin, the major active metabolites in psychedelic mushrooms, are gaining broad attention as potential therapies for a range of conditions.”

He continued, “PsygaBio is pursuing the wide-open scientific field for mushroom-based therapies, with backing from a leading international venture capital fund and a renowned academic institution. The company's distinguished scientists are creating and stabilizing new mushroom genetics and developing novel intellectual property that could lead to exciting new discoveries in psilocybin therapeutics. We are proud to support their research and development efforts and look forward to sharing more of their achievements in the future."

PsygaBio focuses on mushroom cultivation and psilocybin extraction. After extracting the substance, the company then investigates the compounds and formulations for therapeutic benefits. The company is engaged with research involing the use of these compounds to treat a variety of central nervous system and inflammatory disorders.

As part of Synaptogenix’s expansion, its chairman Josh Silverman and director Bruce Bernstein will join PsygaBio’s board of directors.

Synaptogenix recently had to make certain financial moves in order to maintain its Nasdaq listing. In a press release issued on April 3, 2024, the company announced that it was performing a reverse stock split.² At the time, it was stated that a ratio of one post-split share for every 25 pre-split shares. The reverse split went live on April 5, 2024.

The move was made to increase the per-share trading price, which had fallen below the Nasdaq’s minimum bid price. Had the company not performed the reverse split, it would likely have had its listing removed from the Nasdaq Capital Market.

By performing the reverse stock split, the company reduced the number of outstanding shares from over 27 million to just over one million shares.

Sources

1. Synaptogenix Increases Stake in Innovative Psilocybin Drug Discovery Company through its Partnership with Cannasoul Analytics. Synaptogenix, Inc. April 9, 2024. https://www.prnewswire.com/news-releases/synaptogenix-increases-stake-in-innovative-psilocybin-drug-discovery-company-through-its-partnership-with-cannasoul-analytics-302111691.html
2. Synaptogenix Announces Reverse Stock Split to Maintain Nasdaq Listing. Synaptogenix Inc. April 3, 2024. Accessed April 9, 2024. https://www.prnewswire.com/news-releases/synaptogenix-announces-reverse-stock-split-to-maintain-nasdaq-listing-302106753.html