Health House International (HHI) is set to expand its Australian licensing to cover psychedelic medicines, as the distribution company moves closer to being formally absorbed by Creso Pharma following a Supreme Court ruling.
Creso shares jumped almost 30% after the Supreme Court of Western Australia gave the green light to the company's acquisition of HHI.
The court decision came on the heels of overwhelming support from HHI shareholders the previous week and advances what has been a 10-month acquisition process.
HHI shares have been suspended from trading and the company will no longer be listed on the ASX.
With the deal nearing completion, Creso's share price reached A$0.014c, putting the company's market capitalisation at $23.5 million.
Alongside confirming the court approval, Creso said it has been tracking regulatory developments in Australia and is "exploring a number of opportunities to drive growth in key markets".
One such opportunity involves HHI applying to extend its import licence to cover MDMA and psilocybin.
Applications have been submitted to Australian states to bring in the substances for use in clinical trials and for patient treatment. From July 1, psychiatrists operating under the Authorised Prescriber scheme will be able to prescribe MDMA and psilocybin for treatment-resistant depression and post-traumatic stress disorder (PTSD).
Creso said it will also assess whether finished products from its wholly owned psychedelic subsidiary, Halucenex Life Sciences, could be imported into the country.
Halucenex is currently running a phase II clinical trial examining the effectiveness of synthetic psilocybin in treating PTSD.
Creso chief executive William Lay said: "The application for an import licence for psychedelics marks another exciting opportunity for Creso Pharma and we look forward to advancing this initiative to create a first-mover advantage in the Australian market."
The move reflects a broader trend among cannabis companies eyeing psychedelics as a new revenue stream. Last week, Vitura Health announced a joint venture with psychedelics manufacturer PharmAla Biotech to distribute and manufacture MDMA and psilocybin in Australia.