Little Green Pharma’s (ASX:LGP) psychedelics focused subsidiary Reset Mind Sciences Ltd has entered into a commercial lease agreement for a unique property that incorporates office, clinic and Good Manufacturing Practice (GMP) manufacturing facilities in the Perth suburb of Shenton Park.
The property provides a compelling strategic opportunity for Reset to bring the bulk of its operations together on one site as it continues to make strong progress in the rapidly emerging field of psychedelic medicines in Australia.
As Reset works towards its goal of producing GMP grade psilocybin, the property’s GMP manufacturing facility provides sufficient capacity for all of Reset’s expected requirements without the need for extensive fit out and therefore capital expenditure.
The manufacturing facilities will require GMP certification for Reset’s intended use, however the fit out has been done to the highest standards and was certified by the TGA for the previous tenant’s operations.
The company has also acquired the Facility Validation Documentation related to the manufacturing facilities.
The property also incorporates a separate clinic component that will be fitted out for the specific requirements of treatment using psychedelic medicines. Reset has previously announced a strategic alliance with private health insurer HIF to develop a proof-of-concept mental health care facility offering psychedelic assisted psychotherapy. Under the terms of that agreement, HIF has contributed $250,000 towards the establishment of this facility. The property is also zoned as a potential mental health day hospital site.
The HIF agreement follows the announcement by the TGA allowing psychiatrists, under strictly defined parameters, to prescribe psilocybin for treatment resistant depression and MDMA for PTSD under the Authorised Prescriber scheme from 1 July 2023.
As the psychedelics industry continues to develop, Reset had a need for both GMP manufacturing capability and bespoke clinic facilities,” Reset CEO, Shaun Duffy, said.
“This property presented an unexpected opportunity to meet both requirements and thereby future proof our business for the foreseeable future with only very modest capital expenditure requirements.”
The lease commences on 1 July 2023 for an initial 5-year term with an option for a further 5-year extension thereafter. Given the lease value, the Company does not regard the lease as price sensitive.