Vancouver, British Columbia–(Newsfile Corp. – January 4, 2021) – Entheon Biomedical Corp. (CSE: ENBI) (FSE: 1XU1) (“Entheon” or the “Company“), a biotechnology company focused on developing psychedelic medicines to treat addiction, is announcing a business arrangement with, and a strategic investment in, Heading Health, LLC (“Heading Health”), a psychiatric clinic platform focused on the administration of psychedelic-assisted therapy to treat mental health disorders.
Entheon has participated in a Series A Preferred Stock Financing, investing $200,000 USD for a 5% stake in Heading Health. Under the terms of the investment, Entheon has the option to increase its overall holdings to up to 10% of Heading Health in the subsequent round of financing.
This investment into Heading Health provides Entheon with exposure to the ketamine-assisted therapy space, including Spravato, an FDA approved Ketamine product that is eligible for insurance reimbursement. This business arrangement allows access to data pertaining to ketamine therapy and the patient experience. This data will be used for research purposes to better inform the development of Entheon’s own psychedelic therapy experience. Heading Health will provide guidance regarding clinical practice and the use of biomarker capture devices both in general psychiatric practice and Ketamine treatments. The specific parameters of the arrangement have been outlined in a Letter of Intent and are subject to the execution of a Definitive Agreement by both parties.
“Our investment in Heading Health provides exposure to revenue and learning opportunities from the existing ketamine clinic market. The Heading Health team has real world experience operating multisite clinic practices and we are excited by the long-term opportunities presented by such a partnership,” said Timothy Ko, CEO of Entheon. “The opportunity to access and analyze data as it relates to a patient’s ketamine-assisted therapy process is an exciting prospect, with the potential to inform the successful development of Entheon’s own DMT-assisted treatment program, while also providing insight as to how the psychedelic-assisted therapy model, in general, can be optimized toward positive patient outcomes.”
“This initial investment by Entheon is validation of Heading’s crucial role in the emerging treatment paradigm for mental health disorders. As well as this, Entheon sees significant value in the data that Heading will be collecting in order to optimize patient outcomes,” said Simon Tankel, CEO of Heading Health. “We are excited by the opportunity to collaborate and partner with Entheon in order to co-develop evidence-based protocols for psychedelic-assisted therapies.”
About Entheon Biomedical Corp.
Entheon is a biotechnology research and development company committed to developing and commercializing a portfolio of safe and effective N,N-dimethyltryptamine based psychedelic therapeutic products (“DMT Products“) for the purposes of treating addiction and substance use disorders. Subject to obtaining all requisite regulatory approvals and permits, Entheon intends to generate revenue through the sale of its DMT Products to physicians, clinics and licensed psychiatrists in the United States, certain countries in the European Union and throughout Canada.
About Heading Health LLC
Founded in Austin, Texas, Heading Health provides a full-suite of therapies and diagnostic tools for the treatment of mental health challenges, including Spravato® (esketamine) nasal spray for treatment-resistant depression; Intramuscular (IM) ketamine; Transcranial magnetic stimulation (TMS); and Telepsychiatry for depression, anxiety, PTSD and OCD. Overseen by Dr. Steven Levine, a board-certified psychiatrist with over 10 years of clinic experience, the Heading Health management team is experienced in operating and scaling psychiatric clinics across multiple states, securing insurance coverage and pioneering the most efficient and effective breakthroughs in clinical research and technologies.
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Cautionary Note on Forward Looking Information
This news release contains forward‐looking statements and forward‐looking information within the meaning of applicable securities laws. These statements relate to future events or future performance. All statements other than statements of historical fact may be forward‐looking statements or information. More particularly and without limitation, this news release contains forward‐looking statements and information relating to a strategic investment, the performance of such investment and other matters. The forward‐looking statements and information are based on certain key expectations and assumptions made by management of the Company. Although management of the Company believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward‐looking statements and information since no assurance can be given that they will prove to be correct.
Forward-looking statements and information are provided for the purpose of providing information about the current expectations and plans of management of the Company relating to the future. Readers are cautioned that reliance on such statements and information may not be appropriate for other purposes, such as making investment decisions. Since forward‐looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the Company’s ability to enter into a definitive agreement, obtain meaningful data, if at all, the exercise of the option to increase its investment in Heading Health and the success of such investment. Accordingly, readers should not place undue reliance on the forward‐looking statements and information contained in this news release. Readers are cautioned that the foregoing list of factors is not exhaustive. The forward‐looking statements and information contained in this news release are made as of the date hereof and no undertaking is given to update publicly or revise any forward‐looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws. The forward-looking statements or information contained in this news release are expressly qualified by this cautionary statement.
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