Vernon-based life sciences company Doseology has terminated the lease at its Vernon facility, thereby cancelling its application for a Health Canada dealer’s licence for its psilocybin-based products.
The facility, located at 6294 Old Kamloops Road, was the site of the company’s application to Health Canada for a dealer’s licence under the Controlled Drug and Substances Act.
With the lease termination, Doseology obtained a release from the landlord of the premises from any liability arising under the lease.
“The limited market for psilocybin products and the slow pace of regulatory change unfortunately made operations at the Vernon facility currently unfeasible. The company could not justify the additional capital expenditures required at this time to complete construction and obtain a dealer’s license,” CEO Ralph Olson said in a press release.
“The company is now focused on establishing and growing retail sales channels for its branded line of functional mushroom products.”
The company’s board of directors has started a review process to explore strategic alternatives. That process will involve an evaluation of the company’s current strategic direction, operations, market valuation and capital structure.
The company could go in a number of different directions, including the following: continuation as stand-alone public company, strategic investor participation, acquisition by or a merger with an industry partner and other strategic alternatives that may be identified during the strategic review.
“The board continues to support the company’s current strategic priorities. However, the board believes that, given the current state of the capital markets and the evolving landscape in our industry, a broad review of strategic alternatives is appropriate and in the best interest of the company,” said Olson.
Meanwhile, Doseology also announced the resignation of Harbir Toor as a director and independent audit chair. He is replaced by David Lutz as a director and Pratik Patel as a director and independent audit chair.
According to the press release, Lutz has extensive experience in small business management consulting, corporate finance and business valuation, having performed and supervised more than 200 business valuations. Patel has over 15 years of experience as a senior accounting and finance professional, with expertise in integration and external reporting. His experience includes serving as head of finance at Bardel Entertainment and as a senior corporate accountant at WildBrain Studios.