Recently public life sciences company, Wesana Health (WESA), is set to acquire Psytech Inc. for $21 million CAD in Wesana Health stock.

Announcing the news today, Wesana said that Psytech will help contribute to its research of using psilocybin therapy to treat Traumatic Brain Injury (TBI). 

Psytech’s current business model includes Tovana Solutions, a clinical software-as-a-service (SaaS) platform, Tovana Clinics, a mental health practice network, and PsyTech Connect, a community, course, and event provider. 

According to Daniel Carcillo, CEO of Wesana Health, “the acquisition of PsyTech will greatly accelerate our ability to understand, analyze and improve neurological health and performance by providing a data platform on which to build our technical strategy, clinics in which to apply and accelerate our neuroscience research and relationships with many thousands of the practitioners who will leverage our medicines, diagnostics and technology to heal people.”

Once the acquisition is complete, Wesana will rebrand Tovana Solutions and Tovana Clinics as Wesana Solutions and Wesana Clinics respectively. Psytech Connect, the largest psychedelic therapy community with over 8,000 actively engaged professionals will continue to allow Wesana to develop a relationship with psychiatric practitioners.

Managing Principal, Dustin Robinson of Iter Investments, a venture capital firm that was an early investor in both Psytech and Wesana commented to Psychedelic Invest on the combination of the two companies: “Part of our investment thesis at Iter Investments is investing across the entire value chain, allowing our fund greater transparency into the opportunities within the space; and it also gives us the unique ability to recognize certain synergies among our portfolio companies. We believe that Psytech and Wesana perfectly complement each other; and we expect that the combination of these two companies will accelerate value creation for its shareholders.”

Wesana Health, which began trading only two months ago on the Canadian Stock Exchange (CSE), was up more than 5% on the news of the acquisition as investors seem to like the deal.