Ehave magic mushroom company to merge and list

Ehave Inc, which is researching magic mushrooms growing in Jamaica, is to merge with another start-up company ahead of a planned listing on the Nasdaq stock exchange.

Through its subsidiary Mycotopia Therapies, Ehave will merge with Ei.Ventures, and rename the operation as PSLY.com, it said in a statement. The companies anticipate closing the transaction on or about July 30.

Ehave owns some 9.79 million shares of Mycotopia Therapies, which was valued at roughly US$28.4 million last Friday, the North American company said.

“Mycotopia Therapies’ primary focus is on mushroom and psychedelic opportunities. The company has been performing most of its research in Jamaica,” Ehave said.

Mycotopia also works with cannabis labs in the Netherlands to develop psychedelics for licensing..

“Ei.Ventures’ ambition is to deliver governmental approved therapeutic treatment options that address the current global mental healthcare pandemic,” the company added.

It plans to do this by leveraging blockchain and virtual reality technology.

Ehave principal Ben Kaplan said the merger transaction would be valued at more than US$380 million. It’s expected to position Ei.Ventures “to raise capital in order to execute its business plan”.

“As far as our Ehave shareholders are concerned, this business combination represents the culmination of monetising our Mycotopia Therapies asset,” Kaplan said.

Kaplan’s company previously merged with 20/20 Global in a transaction that closed in January 2021, after which it renamed the entity Mycotopia.

Since the onset of the pandemic in 2020, at least three companies have announced plans to do mushroom deals, including Ehave, Cybin and Havn Life Sciences. The strategy generally entails working with a research institute or university to research and grow the product, after which the companies’ business plans take effect, with some focusing on wellness retreats, and others seeking to export the product.

business@gleanerjm.com