Australian cannabis producer Little Green Pharma says it plans to “demerge” the ownership of its psychedelics unit, Reset Mind Sciences, so the respective companies can pursue their strategies as independent businesses.
A spokesperson for Little Green Pharma (LGP) said the move is essentially a spinoff.
However, LGP will not retain any financial interest in the psychedelics company, according to the spokesperson.
LGP shareholders will be the only shareholders of the new company at the time of demerger, the spokesperson noted.
One LGP board member, Angus Caithness, will be on the Reset Mind Sciences board.
But no board members of the psychedelics company will sit on LGP’s board, apart from Caithness.
LGP entered the psychedelics space in late 2020.
“We have invested significant effort investigating and advancing Reset’s psychedelics operations throughout 2021 and believe it is now at a point where it is best placed to grow as a standalone business,” Little Green Pharma CEO Fleta Solomon said in a news release.
“We are confident the demerger will allow for both Reset to drive its psychedelics strategy and LGP to focus solely on its medicinal cannabis business,” she said.
Stay informed with MJBiz Newsletters
MJBiz’s family of newsletters gives cannabis professionals an edge in this rapidly changing industry.
- MJBizDaily: Business news for cannabis leaders in your inbox each morning
- MJBiz Cultivator: Insights for wholesale cannabis growers & vertically integrated businesses
- MJBizCon Buzz: Behind-the-scenes buzz on everything MJBizCon
- MJBiz Retail + Brand: New products, trends and news for cannabis retailers, distributors and marketers
- Hemp Industry Week: Roundup of news from hemp farming to CBD product manufacturing
- And more!
“We believe the demerger rewards LGP shareholders for Reset’s progress to date and allow them to participate in its exciting future.”
The move is subject to shareholder and other required approvals, according to the news release.
Shares of Little Green Pharma are traded on the Australian Securities Exchange as LGP.