Benzinga | Dec 28, 2020 01:57PM EST

Allied Wants To Conquer Psilocybin Space, Plans To Acquire Pacific Sun Fungi

Medical cannabis company Allied Corp. (OTC:ALID) is taking the next step on its road to joining the psilocybin space.

The British Columbia-based company said it signed a letter of intent to buy the psilocybin company Pacific Sun Fungi.

This move comes as the next logical step in the company's growth plans, as Allied previously announced it has submitted a provisional patent application for the company's mushroom formulation focusing on depression and anxiety disorders.

Pacific Sun is known for its psilocybin-focused research and development activities over the last 10 years, formulating several proprietary technologies and formulations.

Allied Corp. said it was initially created with the goal to develop and secure cannabinoid therapies for veterans and others who suffer from post-traumatic stress disorder.

With the acquisition of Pacific Sun Fungi, the company said it hopes to advance and broaden its portfolio of research and remedy options to cover "depression, anxiety and general mental health."

With this, the company believes it will be enabled to offer a proprietary "full scope treatment" option to the patients.

Unlike psilocybin therapies that consist of treatment and a wash out cycle, creating a pause in treatment between dosing periods, the company's full scope treatment provides continual therapy with Allied's cannabinoid and natural health products in addition to psilocybin treatment.

"We were seeing many people coming through our healing retreats reporting the benefits of the micro dosing with psilocybin products," Calum Hughes, CEO and founder of Allied Corp., said in a statement.

"We put our best scientists to task to explore the pharmaceutical benefits of functional mushroom formulations. We truly believe that several pharma drug indications will be discovered with the products that we have. We are excited to begin this important research in the New Year."