Thoughtful Brands, Vancouver-based cannabis and psychotropic medicine company, has dismantled Verrian, its German subsidiary. This allows Thoughtful Brands to concentrate on its core business, direct-to-consumer brand development, e-commerce, and vertical integration of its supply chains.
Verrian was a pioneer in the field of psychedelics for treating anxiety, mood, and substance abuse disorders. It owned a Radebeul pharmaceutical manufacturing plant, a suburb in Dresden. This facility was used in clinical trials using psychedelic substances to treat and prevent opiate addiction. It is now seeking creditor protection in Germany.
Thoughtful Brands stated that Verrian lacked sufficient working capital to support current operations and meet creditors' demands. Therefore, Verrian was forced to file insolvency proceedings. It has suspended all operations and is currently awaiting the appointment of a court-appointed interim administrator to manage its affairs in the best interests of its creditors.
This acquisition follows Thoughtful Brands' September purchase of American CBD Extraction Corp, a Kentucky-based processor and hemp grower. The deal is estimated to be worth approximately $9m.
This acquisition allows the firm to be fully vertically integrated and control every aspect of the supply chain, including logistics and production. As a result, the company plans to launch "superior quality CBD brands," offering products made from the hemp it extracts and produces, as well as products that are formulated for future clients.
Verrian's closure comes when psychedelics are becoming more acceptable, increasing interest in "magic mushrooms."
Oregon became the first state in the United States to legalize psilocybin. This is the main ingredient in magic mushrooms. Oregon's Measure 109 will allow legal access to psilocybin in supervised settings for mental health treatment.
Citizens in the District of Columbia voted to make magic mushrooms and other psychedelic drugs illegal. Initiative 81, the Entheogenic Plant and Fungus Policy Act of 2020 was passed.
Although the measure does not legalize drugs, it places possession of the drug among the lowest priority enforcement priorities for DC police. However, the initiative still faces hurdles before it is made law. Before the measure can be sent to Congress, it must be approved by the DC Council. Then, Congress has 30 days to either block the measure or make it law.
Congress has repeatedly tried to block DC legislators' efforts to pass drug liberalization measures. Andy Harris, the Republican representative from a Maryland district, has already stated that he will work against such measures.
In California, Scott Wiener, a state senator, has recently called for the decriminalization of psychedelic drugs to be used for therapeutic purposes.
"When the legislature reconvenes, I will introduce legislation to decriminalize psychotropic drugs. These drugs are proven to be beneficial in treating depression, PTSD, and other conditions. We must stop criminalizing drug addiction and use.
"I will be working with Assemblymembers Evan Low & Sydney Kamlager-Dove to make this important step towards a rational, science-based, and public-health-focused approach toward drugs."
It is important to remember that despite growing interest in psychedelics and increasing legislative victories, they are still a niche product with few opportunities for a lucrative business.
Thoughtful Brands knew that the time it would take to see enough return from Verrian was too long. Investors should remember this wariness as they continue searching for new psychedelics opportunities.
Original article: https://www.cbd-intel.com/thoughtful-brands-pulls-out-of-german-psychedelics-to-focus-on-american-cbd/
Image Credit: La-fontaine
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Article credit to https://cbdhealthandwellness.net
