In what is an important development for Creso Pharma (ASX: CPH), the target acquisition company Halucencex Life Sciences is rapidly following its market strategy in California.
The decision was made to accelerate entry into the California market following the recent passage of Senate Bill 519 by the California State Senate, which if passed the law would cause a wide range of psychedelic substances, including psilocybin, was legal and for use by adults. of 21.
The law is designed to combat the growing mental health problems in the United States and would mean a more health-focused approach to the use of psychedelic compounds to address this current mental health crisis.
It also marks the continued push towards the acceptance of psychedelic compounds as an alternative treatment route.
To eliminate the stigma surrounding psychedelics as a medical alternative, the law would also eliminate previous criminal offenses for use and possession.
Senate Bill 519 has passed the California State Senate, which if enacted would make a wide range of psychedelic substances, including psilocybin, legal and for use by adults over the age of 21. .
If the bill is passed as expected, it would open the doors to Halucenex to accelerate a development plan with strategic scientific consulting firm and US partner HeteroGeneity, LLC.
Any development plan with HeteroGeneity would have the potential for Halucenex psilocybin products and compounds to be available for the U.S. market.
“The passage of this legislation by the Senate reveals a significant shift in the acceptance of psychedelic compounds as a method of alternative treatment to common and debilitating diseases,” said Bill Fleming, founder and CEO of Halucenex.
“Creso has a considerable force that we will take advantage of, as well as the personnel of the country that will be able to develop possible opportunities of collaboration, processes of regulatory approval and future agreements of license.
“We are very excited to work with Creso’s management and our own technical team to delineate strategies that will enable the company to become one of the first market drivers in what is expected to be a considerably large market.”
John Griese, director of U.S. Business Development, CPH, and strategic advisor and chief psychedelic entrepreneur Bruce Linton, are working hard to advance collaborations and market entry strategies.
CPH is trying to become a prime mover in the psychedelic sector in the US and is now looking to strengthen ground boots in the country to support its expansion efforts.
The company is also pursuing DTC eligibility for its double OTCQB (OTC) listing, which will allow real-time electronic transactions of CPH securities and facilitate access for U.S. investors.
The listing is expected to occur in the short term and will provide additional exposure for CPH during this crucial period of growth.
“This is an important development for Creso Pharma and Halucenex and provides a key strategic piece, which will underpin our expansion into the US market,” said non-executive chairman Adam Blumenthal.
“Over the past few months, we’ve made numerous appointments focused on the United States and Halucenex has reached multiple partnerships and agreements that will allow the company to track the U.S. psychedelic market and become the industry’s leading engine.
“The Board and management team are actively evaluating a number of strategies to accelerate entry into the US market and will leverage our existing alliances and technical expertise in the psychedelic space to gain more value for shareholders.
“We look forward to updating shareholders on developments as they materialize.”