Bill passed: wide range of psychedelics could be made legal in the US
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In what is a major development for Creso Pharma (ASX:CPH), target acquisition company Halucencex Life Sciences is fast tracking its go to market strategy in California.
The decision was made to expedite a Californian market entry following the recent passing of Senate Bill 519 through the California State Senate, which if signed into law, would make a wide range of psychedelic substances including psilocybin legal to use and possess for adults over the age of 21.
The law is deigned to combat growing mental health issues in the US and would mean amore health-focused approach to the use of psychedelic compounds to address this current mental health crisis.
It also marks the ongoing push towards acceptance of psychedelic compounds as an alternative treatment route.
To remove the stigma around psychedelics as a medical alternative, the law would also expunge prior criminal offences for use and possession.
If the bill passes as expected, it would open the doors for Halucenex to accelerate a development plan with strategic scientific consulting firm and US-based partner HeteroGeneity, LLC.
Any development plan with HeteroGeneity would have the potential for Halucenex’s botanical psilocybin products and compounds to be made available for the US market.
“The passing of this legislation through the senate highlights a significant shift in the acceptance of psychedelic compounds as an alternative treatment method to common and debilitating diseases,” Halucenex founder and CEO Bill Fleming said.
“Creso has considerable bench strength which we will leverage, as well as in-country personnel that will be able to progress potential partnership opportunities, regulatory approval processes and future licencing agreements.
“We are very excited to be working with Creso management and our own technical team to delineate strategies which will see the Company become one of the first market movers in what is expected to become a considerably large market.”
CPH Director of US Business Development, Mr John Griese and strategic advisor and leading psychedelics entrepreneur Mr Bruce Linton are working hard to progress partnerships and market entry strategies.
CPH is attempting to become a first mover in the psychedelic sector in the US and is now looking at bolstering its boots on the ground in the country to support its expansion efforts.
The Company is also pursuing DTC eligibility for its OTCQB (OTC) dual listing, which will allow for real time electronic trades of CPH’s securities and easier access for North American investors.
Listing is expected to happen in the near term and will provide additional exposure for CPH during this pivotal growth period.
“This is a major development for Creso Pharma and Halucenex and provides a key strategy piece, which will underpin our expansion into the US market,” Non-executive Chairman Adam Blumenthal said.
“Over the recent months, we have made a number of US focused appointments and Halucenex have secured multiple partnerships and agreements that will allow the Company to pursue the US psychedelics market and become a first mover in the sector.
“The Board and management team are actively assessing a number of strategies to expedite a US market entry and will leverage our existing partnerships and technical experience in the psychedelics space to unlock further value for shareholders.
“We look forward to updating shareholders on developments when they materialise.”