Gunsynd PLC New Investment - DiscovOre plc (8459W)

TIDMGUN

RNS Number : 8459W

Gunsynd PLC

28 April 2021

Gunsynd plc

("Gunsynd" or the "Company")

New Investment - DiscovOre plc

Gunsynd Plc (AIM: GUN, AQSE: GUN) is pleased to announce that it has invested GBP200,000 in DiscovOre plc, an Aquis Growth Market quoted investing company ("DiscovOre", AQSE "ORE").

This investment was made on the following terms:

- Subscription for 10,000,000 ordinary shares at a price of 2p per share for a total consideration of GBP200,000;

   -     This investment is a part of a GBP3.5m funding round. 

DiscovOre intends to call a general meeting to approve a new investment strategy, in the medical psychedelic industry. The primary focus of this proposed new investment strategy will be to invest into businesses or assets involved in the development of potential treatments for mental health issues which include, but are not limited to:

1) Drug-resistant depression;

2) Anxiety;

3) Addiction; and

4) Post-Traumatic Stress Disorder.

Subject to shareholder approval of its new investment strategy, DiscovOre intends to use funds raised to invest in a new disruptive healthcare sector in the psychedelic medicine space and related businesses in this sector. It intends to invest in fully regulated and approved psychedelic medicines that its directors believe are fast becoming accepted as treatments not least in the area of mental health.

Almost a billion people suffer from mental health problems worldwide, according to the World Health Organisation. Studies have shown that psychedelics may be able to treat disorders such as depression, anxiety, substance addiction, and obsessive compulsive disorders. Canaccord estimates the market for psychedelic-inspired treatments at up to $100BN.

Mental ill health is the single largest cause of disability in the UK, contributing up to 22.8% of the total burden, compared to 15.9% for cancer and 16.2% for cardiovascular disease. The wider economic costs of mental illness in England have been estimated at GBP105.2 billion each year. This includes direct costs of services, lost productivity at work and reduced quality of life. The NHS in England planned to spend GBP12.2 billion on mental health in 2018/19.

Hamish Harris, director Gunsynd plc, commented "The board of Gunsynd is pleased to be able to invest in this area as mental health is increasingly getting the attention it deserves. We have looked at many investments in life sciences as part of our investment policy and have until now not invested in this area. This investment, however, fits in with our policy of picking emerging trends in the market particularly where we consider there could be a first mover advantage combined with the possibility of helping to alleviate a significant societal issue."

This announcement contains inside information for the purposes of the UK Market Abuse Regulation.

Forward Looking Statements

This announcement contains forward-looking statements relating to expected or anticipated future events and anticipated results that are forward-looking in nature and, as a result, are subject to certain risks and uncertainties, such as general economic, market and business conditions, competition for qualified staff, the regulatory process and actions, technical issues, new legislation, uncertainties resulting from potential delays or changes in plans, uncertainties resulting from working in a new political jurisdiction, uncertainties regarding the results of exploration, uncertainties regarding the timing and granting of prospecting rights, uncertainties regarding the Company's ability to execute and implement future plans, and the occurrence of unexpected events. Actual results achieved may vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors.

The Directors of Gunsynd accept responsibility for this announcement.

For further information please contact:

 
Gunsynd plc 
 Hamish Harris / Peter Ruse      [phone] 
Cairn Financial Advisers LLP 
 James Caithie / Liam Murray     [phone] 
Peterhouse Capital Limited 
 Lucy Williams                   [phone] 
 

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April 28, 2021 02:24 ET (06:24 GMT)