Core One Labs Inc - CLABF stock
Incorporated in 2010, Core One Labs Inc. (OTC: CLABF, CSX: COOL) is a Canada-based biotechnology and life sciences firm headquartered in Vancouver. The company focuses on providing psychedelic-assisted psychotherapy, API-grade psilocybin manufacturing, and advancing psychedelic medicines to the drug market via novel delivery techniques. The company is committed to using its proprietary technologies in producing natural-based medicines to cure mental health illnesses, neurological disorders, and addiction. Its CannaStrips technology manufactures infused strips that facilitate the bioavailability of cannabis constituents. The company and its subsidiaries offer additional services, including micro-cultivation, consulting, financing, and provision of natural health products. As of November 28, 2022, Core One operated 13 fully-owned subsidiaries, including Rejuva Alternative Medicine Research Centre Inc., a walk-in medical clinic in Vancouver, and Vocan Biotechnologies Inc., a genetic engineering and biosynthesis research firm. Its clinics operate a combined database of approximately 27,000 patients. The firm was originally known as Lifestyle Delivery Systems Inc. before changing its name in September 2019 to Core One Labs Inc. It is a publicly-traded company with shares listed on the Canadian Securities Exchange under the COOL symbol, on the Borse Frankfurt Exchange under the LD6, WKN: A14XHT symbol, and on OTCQX under the CLABF ticker symbol.
Core One employs a multi-facet business strategy incorporating diversified and complementary business categories and units to establish its footprint in the ever-growing psychedelics market. It pursues the development and commercialization of swift-onset treatment solutions that improve the quality of life while maximizing returns for investors. The firm focuses on researching and developing novel biologically synthesized cGMP API-grade psychedelic compounds and generating psychedelic-assisted modes for treating mental health and neurological complications.
Through research and proprietary delivery methods used by the CannaStrip technology, the company is committed to increasing the efficacy and bioavailability of its existing drug portfolio, including psilocybin, distributed via clinics. The bioavailability of cannabis constituents in Core One’s proprietary technology increases the absorption efficiency of the ingredients, which is vital for patients seeking alternative health treatments. Core One closed the double acquisition of Rejuva Alternative Medicine Research Centre Inc. and 25% of the non-voting share capital of Shahcor Health Services Inc. in July 2020. Rejuva and Shahcor are privately held and maintain a client base of more than 200,000.
The company later in December 2020, acquired Vocan Biotechnologies Inc., a certified Canada-based genetic engineering and biosynthesis research company developing an economical production approach to biosynthesize GMP API-grade psilocybin. Vocan’s team of Scientists specializing in biosynthetic fermentation and protein expression discovered a patentable method for producing psilocybin, an active ingredient in psychotropic mushrooms. On December 31, 2020, the company successfully disposed of a significant number of its non-core assets to focus more on the psychedelic space and the development of its CannaStrip technology. The world antidepressant drug market was valued at $13.7 billion in 2016 and was projected to hit $15.9 billion by 2023 with a CAGR of 2.1%.
Core One Labs announced that its wholly owned subsidiary, Vocan Biotechnologies Inc. successfully completed the final stages of its research on a biosynthetic production system. Vocan has taken a significant step by filing a patent, under the Patent Cooperation Treaty (PCT), to protect its innovative techniques for producing biosynthesized psilocybin (referred to as the "Invention") on an international level. This international patent application is a viewed as a significant development in the patenting process of Vocan's revolutionary method for producing biosynthetic psilocybin. Prior to the PCT patent, Vocan filed a provisional patent with the United States Patent and Trademark Office (USPTO) in January 2022. The Provisional Patent outlined Vocan's proprietary process for biosynthetic psilocybin production. Over the past year, Vocan's scientists conducted extensive experimentation and testing to validate their concept, successfully documenting and defending their breakthrough production method. The culmination of Vocan's research and findings has led to the current international patent filing, which, if successful, will ensure that the Company retains exclusive rights to its groundbreaking biosynthetic production system for psilocybin. This patent filing represents a significant milestone for the company as it strives to establish itself as a frontrunner in the psychedelic industry. Core One's proprietary production systems have the capability to produce 100% pure API grade psilocybin in a highly cost-effective and time-efficient manner. This positions the Company as a leading producer of psychedelic drugs in the industry.
LOI with Zollaris
Core One Labs Inc. entered into a non-binding letter of intent with Zollaris Laboratories Corporation to explore a potential transaction involving the sale by GMP Drug of psychedelic compounds, which include biosynthetic psilocybin, psilocin, and DMT formulated by two other wholly-owned subsidiaries of Core One: Vocan Biotechnologies Inc. and Awakened Biosciences Inc. Zollaris is a licensed pharmaceutical company with the authority to possess and conduct laboratory analysis on psilocybin. According to the LOI, GMP Drug is expected to enter an arrangement where Awakened and Vocan will formulate the proprietary psychedelics, utilizing the patent-pending production methods of Awakened and Vocan. GMP Drug will then supply these proprietary psychedelics to Zollaris, subject to a definitive agreement, which is currently being negotiated. The supply arrangement anticipates providing the proprietary psychedelic compounds to Zollaris at a pre-agreed cost per gram, in quantities requested by Zollaris.
Corporate Business History
Core One changed its name from Lifestyle Delivery Systems Inc. to accurately reflect its functional specialization and capture a perfect scope of its products and services. It was initially a technology firm that used its technology to operate a state-of-the-art production and packaging plant in Southern California. Through Core Isogenics Inc. and CSPA Group Inc., its wholly owned subsidiaries, Core One managed a licensed vertically integrated cannabis cultivation, manufacturing, and distribution project in Adelanto, California. It operates in two locations; British Columbia, Canada, and California, USA.
Critical Company Updates
On January 24, 2023, Core One reported Akome Biotech Ltd., its wholly-owned subsidiary, had completed the Phase 1 study of parameters as per its September 2022 press release and consequently entered into a binding contract with Fundació Bosh I Gimpera, representing the University of Barcelona, to initiate Phase 2 studies. The studies aim to investigate the therapeutic potential of the company’s bio-compounds, independently and jointly with various psychedelic components on the central nervous system. Results of the studies are vital to Akome's pre-clinical development of generational psychedelic drug options for treating a range of neurological disorders, including Ischemic Stroke, Parkinson's Disease, and depression.
On January 13, 2023, the company announced that it had successfully acquired GMP Drug Inc., a privately-owned firm that operates a certified GMP facility in Ontario. GMP Drug’s pharmaceutical drugs production facility holds a CDSA Dealer's License, a US FDA registration, and meets all the Food and Drug Regulations in Canada. The laboratory can produce GMP Active Pharmaceutical Ingredient (API) grade compounds comprising those of scheduled psychedelics. The acquisition will boost Core One’s production and allow it to become a full-cycle psychedelic distributor for the Canadian and global markets. GMP Drug’s facility will provide Core One’s subsidiaries with an equipped facility needed to expand research and production.
- CLABF Company Profile – seekingalpha.com/symbol/CLABF. Accessed on February 8, 2023.
- CORE ONE LABS INC. MANAGEMENT’S DISCUSSION & ANALYSIS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2022, page 3. – SEDAR. November 28, 2022.
- Core One Labs Business – Core One website. Read on February 8, 2023.
- CORE ONE LABS INC. MANAGEMENT’S DISCUSSION & ANALYSIS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2022, pages 3 & 4. – SEDAR. November 28, 2022.
- Yahoo Finance. Core One's Vocan Files International Patent for its Breakthrough Proprietary Biosynthetic Psilocybin Production Method. July 7, 2023.
- Bloomberg. Core One Labs Enters into Letter of Intent for First Sale of Its Psychedelic Compounds. July 24, 2023.
- Core One Labs' Akome Signs Contract with the University of Barcelona: Initiating Animal Model Studies on Psychedelics Drug Development to Combat a Variety of Neurological Diseases – Yahoo Finance. January 24, 2023.
- Core One Labs' Acquires GMP Drug Inc.: Positioning Itself as a Full Cycle Psychedelics Supply Chain Solution for Clinicians, Researchers, and Other Drug Developers – Seeking Alpha. January 13, 2023.