COOL MANAGEMENT OBVIOUSLY HAS PLANS TO BUILD A COMPANY THAT
WILL BECOME REVENUE POSITIVE IN MUCH EARLIER TIME FRAME THAT ONE WOULD NORMALLYEXPECT. WE BETTER TAKE A
CLOSER LOOK OF THE POTENTIAL AND TIMEFRAME.
"COOL (the "Company") is pleased to announce that its wholly owned subsidiary Vocan Biotechnologies Inc. has entered into a term sheet with Vocan Brazil Biotechnologies Inc. ("Vocan Brazil") for the licensing of its proprietary technology. Vocan Brazil is owned by Brazilian entrepreneur Mr. Marcelo Galvo, an arm's length party.
The Company has licensed its proprietary technology to make, use and sell biosynthetic psilocybin and all commercial products derived from such technology within the exclusive territory of Brazil. Vocan Brazil is a fully funded pharmaceutical company that intends to begin clinical trials with biosynthetic psilocybin once Core One Labs has filed its patent. The trials will be the first stage in bringing a psilocybin drug to market. Brazil has one of the most progressive set of laws on psychedelics, as they have been historically used as part of their culture.
Mr. Galvo is the former CEO of Canopy Growth Brazil, and founder of OnixCann, a Brazilian health tech company. OnixCann has a full range of operations and has partnerships to develop products, conduct clinical trials and register medical cannabis and pharmaceuticals in Brazil. OnixCann has a joint venture with Australian multinational MGC Pharma and is currently conducting a Phase 3 clinical study in Brazil for a drug to combat COVID-19 and will be conducting two (2) cannabis-based Phase 3 clinical trials in 2022. OnixCann aims to help Brazil keep pace with the global development trend by offering reliable information to healthcare professionals, providing patients with access to healthcare and healthcare professionals , high quality medications, and improving the overall quality of life of patients.
"Licensing Core One's technology, to be used for production and clinical trials in Brazil is a major step for us." Said Marcelo Galvo, CEO of Vocan Brazil. "I believe that Core One's technology is going to provide us with a competitive advantage in the psychedelics space, and this partnership gives them access to an untapped South American market."
Brazil operates one of the largest universal health care systems in the world, providing free services to over 210 million people. In Latin America, Brazil's population has the highest rates of disability caused by depression at 9.3% and anxiety at 7.5%. Additionally Brazil has a large, diverse, and rapidly growing population with high treatment-nave with shortened clinical trial approval times giving the company a first mover advantage. This will allow the company to establish itself early, while collecting important information from clinical trials. The revenue received from the royalties on the sales Vocan Brazil makes, provides an additional revenue stream for Core One Labs, without having to take on additional costs.
The licensing arrangement will have a term of 60 months, subject to an automatic extension for a term of a further 60 months if royalty payments are $1 million or more during the initial term. A licensing fee of $250,000 is payable annually upon the market launch of any associated product or products relating to the licensed technology. $250,000 shall be deposited for the first year of expenses, made in quarterly installments of $62,500. $250,000 is to be deposited at the beginning of the second year and each year onward, of which all such deposited Licensing Fees shall be credited to the first year of royalty payments. 12.5% of net profits received from the sale of licensed products in the first year, 10% of net profits from the sale of licensed products in the second year, and 7% of net profits received from the sale of licensed products in the third year.
The proposed transaction is subject to various conditions, including negotiation of definitive documentation and approval from the Boards of Directors of Vocan Biotechnologies Inc. and Vocan Brazil.
"We are extremely excited about partnering with an established pharmaceutical company, that will be funding the development of products using Vocan's proprietary technology. Mr. Galvo's track record as an accomplished biotech entrepreneur positions Vocan Brazil to be a leader in the psychedelic space in Brazil. Mr. Galvo's commitment to this project demonstrates his confidence in Dr. Hancock's ability to execute on producing biosynthesized psilocybin in a way that revolutionizes the psychedelic industry." stated Joel Shacker CEO of the Company."