Novamind Reports Fiscal Q3 2022 Financial Results and Operating Highlights
- Record high quarterly revenue of $3,227,352, +32% over the previous quarter
- Growth driven by Arizona acquisition, expanding clinic network to eight total locations
- Numinus to acquire Novamind, creating a preeminent North American platform, spanning 13 wellness clinics, four research sites and one bioanalytical laboratory
TORONTO, ON / May 31, 2022 / Novamind Inc. (CSE: NM | OTCQB: NVMDF | FSE: HN2) (“Novamind” or the “Company”), a leading mental health company specialized in psychedelic medicine, reported its financial results for the three and nine months ended March 31, 2022 (“Fiscal Q3 2022”). All results are reported under International Financial Reporting Standards (“IFRS”) and in Canadian dollars, unless otherwise specified.
Novamind CEO, Yaron Conforti, commented, “Once again, we’re pleased to report record-high revenue this quarter. Growth was driven by our recent expansion to Arizona in addition to the continued progress of our Utah operations. With the anticipated shareholder approval of the acquisition of Novamind by Numinus in June, the Company is well-positioned to continue this record growth in pursuit of its mission to responsibly reintroduce psychedelic therapy to mental healthcare.”
Fiscal Q3 2022 Operating Highlights and Subsequent Events
- The Company entered into a definitive arrangement agreement (the “Arrangement”) pursuant to which Numinus Wellness (“Numinus”), will acquire Novamind in an all-share transaction
- Pending shareholder approval, holders of Novamind common shares (“Novamind Shareholders”) will receive 0.84 of a common share of Numinus for each Novamind share held
- The Arrangement values Novamind at $26.2 million on a fully diluted in-the-money basis, representing a premium of 51% to Novamind’s 20-day volume-weighted average price on the Canadian Securities Exchange as of April 8, 2022
- A special meeting of the Company’s shareholders will be held on June 8, 2022, to approve the proposed acquisition of Novamind by Numinus
- Closed the acquisition of Arizona-based Foundations for Change, Inc., a mental health practice specialized in ketamine-assisted psychotherapy
- Opened the Company’s eighth integrative psychiatry clinic, located in Phoenix, Arizona
- Launched Groups by Novamind, an expansion of the Company’s clinical care model focused on increasing patient access to mental health treatments
- Novamind’s strategic partner, Bienstar Wellness Corp., signed a letter of intent to acquire BRC Saude Mental E Terapias Assistidas Ltda., a leader in specialized ibogaine treatments for substance use disorder based in Sao Paolo, Brazil
- Contracted to provide clinical research services for the following clinical trials:
- A phase IIb randomized clinical trial investigating lysergic acid diethylamide (LSD) for generalized anxiety disorder in adults, sponsored by MindMed
- A phase II clinical trial investigating psilocybin for major depressive disorder, sponsored by the Usona Institute
- A phase II clinical trial investigating ketamine-assisted psychotherapy for adults with life-threatening illnesses, sponsored by the Ketamine Research Foundation
- A phase I clinical trial investigating the safety and efficacy of ketamine-assisted psychotherapy combined with Mindfulness-Oriented Recovery Enhancement therapy for the treatment of adults with opioid use disorder
- A phase II clinical trial investigating an antidepressant medication for adults with major depressive disorder and PTSD, sponsored by Alto Neuroscience
- A phase II randomized clinical study for the acute treatment of social anxiety disorder, sponsored by Bionomics
Fiscal Q3 2022 Financial Highlights
- Total revenue $3,227,352, +32% over the previous quarter
- Total working capital of $3,928,642 to fund operations
- Closed a $5,000,000 private placement with an institutional investor
The following table presents selected financial information from Novamind’s reviewed condensed interim financial statements for the three and nine months ended March 31, 2022. The following information should be read in conjunction with the financial statements and management’s discussion and analysis, which are available under Novamind’s SEDAR profile at www.sedar.com.
Supplemental Disclosure for Circular
Novamind confirms that the management information circular dated May 6, 2022 (the “Circular”), form of proxy and other materials with respect to the Company’s Arrangement with Numinus have been mailed to Novamind Shareholders of record as of May 2, 2022.
The Company wishes to provide the following additional disclosure to supplement and amend the disclosure in the Circular. Capitalized terms not otherwise defined below shall have the meanings ascribed to such terms in the Circular.
The Company confirms that the Novamind Board, other than Yaron Conforti, who abstained from voting on the Arrangement, has determined that the Arrangement is fair to Novamind Shareholders, that the Arrangement is in the best interests of Novamind and unanimously recommends that Novamind Shareholders vote FOR the Arrangement Resolution. Mr. Conforti abstained from voting on the Arrangement on the basis that he will receive a change of control payment in connection with the Arrangement, as described in more detail in the Circular under “The Arrangement – Interests of Certain Persons in the Arrangement – Change in Control Payment”.
The Company also wishes to advise that the definition of Supporting Shareholders referenced on pages 17 and 24 of the Circular misstated that Support Agreements were entered into with directors and officers of Novamind and “a certain Novamind Shareholder”. The Company clarifies that only certain directors and officers of Novamind entered into Support Agreements, and no non-director or officer Novamind Shareholders entered into a Support Agreement. Copies of the Support Agreements have been uploaded to the Company’s SEDAR profile.
About Novamind
Novamind is a leading mental health company enabling safe access to psychedelic medicine through a network of clinics and clinical research sites. Novamind provides ketamine-assisted psychotherapy and other novel treatments through its network of integrative mental health clinics and operates a full-service contract research organization specialized in clinical trials and evidence-based research for psychedelic medicine. For more information on how Novamind is enhancing mental wellness and guiding people through their entire healing journey, visit novamind.ca.
Contact Information
Novamind
Yaron Conforti, CEO and Director
Telephone: +1 (647) 953 9512
Samantha DeLenardo, VP, Communications
Email: media@novamind.ca
Investor Relations
Email: IR@novamind.ca
Forward-Looking Statements
This news release contains forward-looking statements. All statements other than statements of historical fact included in this release are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company’s expectations including the risks detailed from time to time in the Company’s public disclosure. The reader is cautioned not to place undue reliance on any forward-looking information. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The forward-looking statements contained in this news release are made as of the date of this news release and the Company will update or revise publicly any of the included forward-looking statements as expressly required by applicable laws.