VANCOUVER, BC, CANADA (June 2, 2020) – Mota Ventures Corp. (CSE:MOTA FSE: 1WZ:GR OTC: PEMTF) (the “Company”) a leading ecommerce provider of CBD products to consumers in the United States and Europe, is pleased to announce the completion of its’ Cdn$20,000,000 acquisition (the “Transaction”) of all of the outstanding share capital of Verrian Ontario Ltd. (“Verrian”) effective June 1, 2020. Verrian is an established and well advanced European psychedelic medicine company that is focused on delivering and developing products related to addiction reduction, with a focus on alcohol and opiates.
Ryan Hoggan, CEO of the Company stated, “The massive shift towards psychedelic derived medicines is no longer in doubt and this acquisition sends a strong signal to the market that Mota Ventures intends to be a serious participant this coming decade. Unlike some companies that use psychedelics as a marketing term, this acquisition of Verrian brings Mota market ready products, world renowned addiction medicine experts, R&D facilities and a 110,000 square foot facility to make it happen. In my opinion this is the most complete psychedelic asset on the market, and therefore should immediately make Mota a market leader in the space.”
Hoggan further added, “In 2020, we have proven our e-commerce ability to acquire tens of thousands of customers and generate millions of dollars in monthly revenues from CBD sales. We intend to bring that same market expertise to bear with our psychedelics business in 2020 and far beyond.”
ACQUISTION PROVIDES MOTA WITH IMMEDIATE ENTRY INTO FAST GROWING $100 BILLION PSYCHEDELICS INDUSTRY
The market for psychedelic derived medicines and therapies is estimated to be as high as USD$100 Billion*. Over the past decade, growing societal awareness and acceptance of mental disorders and addiction as real diseases has accelerated the push for new and innovative treatments using psychedelics, including psilocybin.
As a result, psychedelic research published back in the 50s and 60s has resurfaced and once again highlighted their curative properties. Moreover, the recent legalization of Cannabis in Canada, as well as, across 33 US states for medicinal purposes, has significantly mitigated any stigma, leading to accelerated interest and investment in the psychedelics industry.
Verrian has already developed two psilocybin products that are natural psilocybin extracts, from organically cultivated mushrooms, combined with metabolism enhancing natural herbs. This is only the beginning with further products in various stages of development.
ESTABLISHED EUROPEAN PSYCHEDELIC MEDICINE COMPANY
Verrian owns and operates a 110,000 square foot pharmaceutical manufacturing facility in Radebuel, Germany. Operations within this full suite pharmaceutical manufacturing site include analytical laboratory and finished dose manufacturing, which exceed all international quality standards. The facility and equipment of Verrian have been independently appraised at Cdn$10,600,000 and include an analytical laboratory and full pharmaceutical manufacturing suite.
Verrian operates three distinct business segments:
PRODUCTS FOCUSED ON OPIATE ADDICTION REDUCTION
Verrian’s singular focus is rewiring the mind to overcome addiction through natural medicine. Specifically, the micro dosing of psilocybin demonstrates potential to remove the dopamine reward of addictive substances, potentially diminishing the desire for addictive substances, thereby reducing or eliminating the need for the addictive substance.
To date Verrian has developed two psilocybin products: PSI GEN and PSI GEN+. These Psilocybin products are focused on opiate addiction reduction. As natural psilocybin extracts, from organically cultivated mushrooms, combined with metabolism enhancing natural herbs, they are ideal for individuals commencing micro-dosing and capable of being combined with additional anti-addiction therapies.
All of Verrian’s compounds are derived from organic, glyphosate free naturally occurring plants, grown specifically for its own purposes.
GOALS AND VISION
In addition to the facility and equipment outlined above, Verrian has invested approximately Cdn$2,400,000 in clinical trial design and development of proprietary formulations for its psilocybin trademarked PSI-GEN products, and cannabis products, including trademarked CBDaily and CBNight.
Verrian’s world renowned addiction medicine experts are moving ahead to develop new potential treatments for therapy, with rigorous clinical research. Once EU GMP and narcotics handling recertification are secured, capabilities will extend to: specialty pharmaceutical formulations; and psilocybin refinement and production for micro dosing.
In consideration for the acquisition of all of the outstanding share capital of Verrian, the Company has issued 54,347,826 common shares (the “Consideration Shares”) to the existing shareholders of Verrian at a deemed price of $0.368 per Consideration Share. 50,543,478 of the Consideration Shares are subject to terms of a thirty-six month time release pooling arrangement, during which time they may not be transferred, assigned, pledged or otherwise traded. The Consideration Shares will be released from the pooling arrangement in tranches, of which ten-percent will be released after four months, fifteen percent after six months, and the balance in five equal tranches every six months thereafter. In addition to the Consideration Shares, upon closing of the Transaction, the Company has arranged for repayment of $150,000 of existing shareholder loans of Verrian, and will arrange for repayment of the balance of $950,000 within sixty days of closing.
The Company is at arms-length from Verrian, and each of its shareholders. The Transaction does not constitute a fundamental change for the Company, nor has it resulted in a change of control of the Company, within the meaning of applicable securities laws and the policies of the Canadian Securities Exchange. In connection with completion of the Transaction, the Company has paid a finders’ fee of 5,434,783 common shares to certain arms’-length parties who have assisted in facilitating the Transaction. The Company has also paid an administrative fee of 1,086,957 common shares of the Company to a consultant who assisted with the Transaction.
We encourage shareholders and prospective investors to visit the Company’s AGORACOM Discussion Forum, a moderated social media platform that enables civilized discussion and Q&A between Management and Shareholders.
About Mota Ventures Corp.
Mota Ventures is an established natural health products company focused in the CBD and psychedelic medicine sectors. Through its powerful eCommerce business, Mota is a leading is a direct-to-consumer provider of a wide range of natural health products throughout the United States and Europe. In the United States, the Company sells a CBD hemp-oil formulation derived from hemp grown and formulated in the United States through its Nature’s Exclusive brand. Within Europe, its Sativida brand of award winning 100% organic CBD oils and cosmetics are sold throughout Spain, Portugal, Austria, Germany, France, and the United Kingdom.
Through its German-based Verrian operation, Mota is researching and testing the efficacy and application of natural psilocybin products for the treatment of opioid and other life altering addictions. Mota is also seeking to acquire additional revenue producing CBD brands and operations in both Europe and North America, with the goal of establishing an international distribution network for CBD and other natural health products.
ON BEHALF OF THE
BOARD OF DIRECTORS
MOTA VENTURES CORP.
Chief Executive Officer
The Canadian Securities Exchange has in no way passed upon the merits of the Transaction, and has neither approved nor disapproved the contents of this press release. Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this press release, which has been prepared by management.
Cautionary Note Regarding Forward-Looking Statement
All statements in this press release, other than statements of historical fact, are “forward-looking information” with respect to the Company within the meaning of applicable securities laws, including with respect to the operations and activities of Verrian, and its plans to acquire revenue-producing CBD brands and operations in Europe and North America. The Company provides forward-looking statements for the purpose of conveying information about current expectations and plans relating to the future and readers are cautioned that such statements may not be appropriate for other purposes. By its nature, this information is subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct and that objectives, strategic goals and priorities will not be achieved. These risks and uncertainties include but are not limited those identified and reported in the Company’s public filings under the Company’s SEDAR profile at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise unless required by law.