Posted on

Vireo Health Announces Second Quarter 2020 Financial Results

– Total revenue of $12.2 million increased 70 percent year-over-year –
– Operating cost structure continues to improve in-line with management’s expectations –
– Development project pipeline positions Company for strong performance improvements in FY21 –

 

 

MINNEAPOLIS, Aug. 26, 2020 /PRNewswire/ — Vireo Health International, Inc. (“Vireo” or the “Company”) (CNSX: VREO; OTCQX: VREOF), the science-focused, multi-state cannabis company with active operations in exclusively medical-only markets and licenses in nine states and the Commonwealth of Puerto Rico, today reported financial results for its second quarter ended June 30, 2020. All currency figures referenced in this release reflect U.S. dollar amounts.

Vireo Logo (PRNewsfoto/Vireo Health, Inc.)

“Our second-quarter results were in-line with our expectations both in terms of revenue growth and operating expenses,” said Founder & Chief Executive Officer, Kyle Kingsley, M.D. “Furthermore, with the recent closing of the sale of our Pennsylvania manufacturing and processing subsidiary, we are well positioned with a strong balance sheet to execute a strategy that should begin to generate positive cash flow next year as we continue increasing scale in our core markets of Arizona, Maryland, Minnesota, New Mexico, and New York.”

Dr. Kingsley continued, “We believe there is significant potential for Vireo to improve revenue growth and profitability in our core markets, and we’ll be investing in each of these markets through the balance of fiscal year 2020 to increase production capacity and retail store count. We expect the benefits of these investments to begin materializing late this year, and continue to believe that each of these markets has the potential to enact adult-use legislation over the short- to medium-term future, which would present additional opportunity for revenue growth, margin expansion, and value creation for shareholders.”

 

Second Quarter 2020 Financial Summary

Reported results for the three- and six-month periods ended June 30, 2020 and June 30, 2019 reflect “pro-forma” results, which exclude contributions from the Company’s former Pennsylvania Medical Solutions (“PAMS”) subsidiary, as Vireo announced a planned transaction to divest PAMS on June 22, 2020 and closed the transaction on August 11, 2020. As a result, financial performance of PAMS’ wholesale business and manufacturing operations have been categorized under discontinued operations within the periods referenced in the financial statements accompanying this news release. Vireo continues to own and operate two retail dispensaries in Pennsylvania.

The Company generated revenue in seven states during the second quarter: Arizona, Maryland, Minnesota, New Mexico, New York, Ohio, and Pennsylvania. Total revenue, including contributions from discontinued operations, increased 70 percent year-over-year to $12.2 million versus $7.2 million in the second quarter of 2019. Reported revenue, excluding discontinued operations, was $10.8 million, an increase of 59 percent as compared to $6.7 million in Q2 2019.

Retail revenue was approximately $9.2 million in Q2 2020, an increase of 46 percent compared to $6.3 million in Q2 2019. The increase in retail revenue was principally due to greater patient enrollment and average revenue per patient in Minnesota and New Mexico, as well as contributions from new retail dispensaries in Pennsylvania. Wholesale revenue of $1.6 million increased by $1.1 million or 256 percent, as compared to $444,023 in Q2 2019. The increase in wholesale revenue was primarily due to the growth of wholesale operations in Maryland, New York, and Ohio.

Gross profit before fair value adjustments was $3.5 million, or 32 percent of revenue, as compared to gross profit of $3.0 million or 45 percent, in the same period last year. The variance in gross profit as compared to the prior year was driven primarily by temporary impacts of planned manufacturing downtime and the build-up of inventory in New York, as well as an increase in the mix of sales in wholesale versus retail markets, with a substantial increase in wholesale revenue as compared to last year.

Total operating expenses in the second quarter were $15.4 million, as compared to $5.4 million in the second quarter of 2019, with the increase primarily attributable to increased salaries and wages, as well as an adjustment to share-based compensation related to the vesting of out-of-the-money warrants issued to a former executive upon termination from the Company. Excluding depreciation and share-based compensation, operating expenses in the second quarter of 2020 were $6.0 million, or 55 percent of sales, as compared to $5.0 million or 74 percent of sales in the second quarter of 2019, and $6.2 million or 59 percent of sales in the first quarter of 2020.

Total other expense was $3.4 million during Q2 2020, compared to $1.8 million in Q2 2019. The increase in other expense was primarily attributable to the issuance of warrants in conjunction with the private placement completed in March of 2020, as well as increased interest expense.

Net loss from continuing operations in Q2 2020 was $7.7 million, as compared to a net loss from continuing operations of $593,041 in Q2 2019. Adjusted net loss from continuing operations for Q2 2020, as described in accompanying disclosures and footnotes, was $7.4 million, as compared to a loss of $4.1 million in the prior year quarter. Adjusted EBITDA, as described in accompanying disclosures and footnotes, was a loss of $1.8 million in Q2 2020, as compared to a loss of $1.9 million in Q2 2019. Please refer to the Supplemental Information and Reconciliation of Non-IFRS Financial Measures at the end of this press release for additional information.

Other Developments

Amidst the ongoing coronavirus pandemic, Vireo’s medical cannabis businesses have maintained “essential service” designation in each of their respective states. As a result, to date there has been no material adverse impact on the Company’s financial performance because of the pandemic.

On April 30, 2020, the Company announced the formation of a wholly-owned subsidiary called Resurgent Biosciences, Inc. Resurgent Biosciences is a Delaware corporation that was formed with the intent to commercialize Vireo’s portfolio of intellectual property and related initiatives in a non-plant-touching entity, which may broaden potential partnership opportunities or other strategic outcomes as Vireo seeks to monetize scientific advancements within the cannabis industry and beyond. Vireo currently has several patent applications pending approval by the United States Patent and Trademark Office. Its patent for harm reduction in tobacco products was allowed earlier this year.

On June 19, 2020, the Company announced its planned purchase of 110,000 square foot greenhouse facility in Massey, Maryland for total consideration of $1.3 million. The Company intends to transfer its cultivation license in the state to this newly acquired greenhouse and maintain processing and manufacturing operations at its existing 22,000 square foot facility in Hurlock, Maryland. This transfer is expected to increase Vireo’s biomass cultivation capacity in the state by nearly 12 times once completed.

On June 22, 2020, the Company announced its planned divestiture of its Pennsylvania manufacturing and processing operations (“PAMS”) to a subsidiary of Jushi Holdings, Inc. for total consideration of $37 million, including $13.8 million in cash upon closing. The transaction closed on August 11, 2020.

On July 9, 2020, Vireo announced the formation of an exclusive licensing agreement with eBottles420 to manufacture and distribute Vireo’s patent-pending, terpene-preserving packaging system. This proprietary packaging system preserves cannabis flower by inhibiting the gradual loss of terpenes and other desirable compounds that naturally occur after harvest.

Balance Sheet and Liquidity

As of June 30, 2020, the Company had 37,952,477 equity shares issued and outstanding, and 153,203,217 shares outstanding on an as-converted, fully-diluted basis.

As of June 30, 2020, total current assets were $81.0 million, including cash on hand of $5.7 million. Total current liabilities were $23.2 million, with zero debt currently due within 12 months.

Following the closing of the PAMS transaction on August 11, 2020, the Company had total cash on hand of approximately $21.1 million.

Outlook Commentary

Dr. Kingsley concluded, “As we enter the second half of fiscal year 2020, we plan to leverage the strength of our balance sheet to make several strategic growth investments in our markets in Arizona, Maryland, Minnesota, and New Mexico. We expect to invest approximately $8.0 to $9.0 million in these projects and that they will be completed by the end of the first quarter of fiscal year 2021. Once complete, these investments should help drive stronger revenue growth and profitability, which gives confidence in our ability to begin producing positive cash flow around the mid-point of fiscal year 2021.”

Conference Call and Webcast Information

Vireo Health management will host a conference call with research analysts on Wednesday, August 26, 2020 at 8:30 a.m. ET to discuss its financial results for its second quarter ended June 30, 2020. Interested parties may register to attend the conference call via the following link:   http://www.directeventreg.com/registration/event/7027889 . Upon registration, each participant will be provided with call details and a registrant ID for Vireo’s conference ID number 7027889.

A live audio webcast of this event will also be available in the Events & Presentations section of the Company’s Investor Relations website at https://investors.vireohealth.com/events-and-presentations/default.aspx and will be archived for one year.

Additional Information

Additional information relating to the Company’s first quarter 2020 results is available on SEDAR at www.sedar.com. Vireo Health refers to certain non-IFRS financial measures such as adjusted net income, Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) and adjusted EBITDA (defined as earnings before interest, taxes, depreciation, amortization, less certain non-cash equity compensation expense, one-time transaction fees, and other non-cash items. These measures do not have any standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other issuers. Please see the Supplemental Information and Reconciliation of Non-IFRS Financial Measures at the end of this news release for more detailed information regarding non-IFRS financial measures.

About Vireo Health International, Inc.

Vireo Health International, Inc. is a physician-led cannabis company focused on building long-term, sustainable value by bringing the best of medicine, science, and engineering to the cannabis industry. With operations strategically located in early-stage, limited-license medical markets, Vireo manufactures pharmaceutical-grade cannabis products in environmentally-friendly greenhouses and distributes its products through its growing network of Green Goods™ retail dispensaries and hundreds of third-party locations. Its current core medical markets of New York, Minnesota, Pennsylvania, Arizona, New Mexico, and Maryland all have the potential to enact adult-use legalization in the next three to 24 months, and two additional markets in Puerto Rico and Massachusetts also have potential for commercialization. Combined with its teams’ focus on driving scientific innovation within the industry and securing meaningful intellectual property, Vireo believes it is well positioned to become a global market leader in the cannabis industry. Today, eight of its 10 markets are operational with 13 of its 32 total retail dispensary licenses open for business. For more information about the company, please visit www.vireohealth.com.

Forward-Looking Statement Disclosure

This news release contains “forward-looking information” within the meaning of applicable United States and Canadian securities legislation. To the extent any forward-looking information in this news release constitutes “financial outlooks” within the meaning of applicable United States or Canadian securities laws, such information is being provided as preliminary financial results and the reader is cautioned that this information may not be appropriate for any other purpose and the reader should not place undue reliance on such financial outlooks. Forward-looking information contained in this press release may be identified by the use of words such as “plans,” “expects” or “does not expect,” “is expected,” “look forward to,” “budget” “scheduled,” “estimates,” “forecasts,” “will continue,” “intends,” “anticipates,” “does not anticipate,” “believes,” “should,” “should not,” or variations of such words and phrases or indicates that certain actions, events or results “may,” “could,” “would,” “might,” “should,” or “will” “be taken,” “occur,” or “be achieved.”  Forward-looking information may include, without limitation, statements regarding the operations, business, financial condition, expected financial results, performance, prospects, opportunities, priorities, targets, goals, ongoing objectives, milestones, strategies and outlook of Vireo, and includes statements about, among other things, the value of assets, the amount of liabilities, the designation of certain businesses or assets as “core” or “non-core,” decisions about allocation of capital and other resources, future developments, the future operations, potential market opportunities including the potential effects of the approval of adult-use cannabis in one or more markets, potential opportunities to monetize assets, strengths and strategy of the Company. Forward-looking information is provided for the purpose of presenting information about management’s current expectations and plans relating to the future and readers are cautioned that such statements may not be appropriate for other purposes. These statements should not be read as guarantees of future performance or results. Forward-looking information includes statements with respect to the opportunities for the Company to leverage increasing scale to improve sales growth and operating performance; the anticipation that the medical-only state markets in which the Company’s subsidiaries operate could enact recreational-use legislation over the near-to mid-term future; the anticipated benefits of strategic initiatives; the effects of reduction of corporate overhead and SG&A expenses; improvement to unit economics; expansion of retail dispensaries in key markets; and the expectation that such expansion will drive stronger revenue growth, operating margins and free cash flow. Forward-looking information includes both known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company or its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements or information contained in this news release including, without limitation, the impact on the Company’s businesses and financial results of epidemics and pandemics, including the COVID-19 pandemic. Financial outlooks, as with forward-looking information generally, are, without limitation, based on the assumptions and subject to various risks as set out herein. Our actual financial position and results of operations may differ materially from management’s current expectations and, as a result, our revenue and cash on hand may differ materially from the revenue and cash values provided in this news release. Forward-looking information is based upon a number of estimates and assumptions of management, believed but not certain to be reasonable, in light of management’s experience and perception of trends, current conditions and expected developments, as well as other factors relevant in the circumstances, including assumptions in respect of current and future market conditions, the current and future regulatory environment; and the availability of licenses, approvals and permits.

Although the Company believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because the Company can give no assurance that they will prove to be correct, including preliminary financial expectations regarding the annualized reduction of corporate overhead and SG&A expenses. Actual results and developments may differ materially from those contemplated by these statements. Forward-looking information is subject to a variety of risks and uncertainties that could cause actual events or results to differ materially from those projected in the forward-looking information. Such risks and uncertainties include, but are not limited to, risks related to preliminary financial results being subject to the completion of the Company’s financial closing procedures and not being audited or reviewed by the Company’s independent registered public accounting firm; the timing of recreational-use legislation in markets where the Company currently operates; current and future market conditions, including the market price of the subordinate voting shares of the Company; federal, state, local and foreign government laws, rules and regulations, including federal and state laws in the United States relating to cannabis operations in the United States; limited operating history; changes in laws, regulations and guidelines; operational, regulatory and other risks; execution of business strategy; management of growth; difficulty to forecast; conflicts of interest; risks inherent in an agricultural business; liquidity and additional financing; foreign private issuer status and the risk factors set out in the Company’s listing statement dated March 19, 2019, filed with the Canadian securities regulators and available under the Company’s profile on SEDAR at www.sedar.com.

The statements in this news release are made as of the date of this release. The Company disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.

Supplemental Information

The financial information reported in this news release is based on audited financial statements for the fiscal year ended December 31, 2019 and unaudited condensed interim consolidated financial statements for the fiscal quarter ended March 31, 2020. All financial information contained in this news release is qualified in its entirety with reference to such financial statements. To the extent that the financial information contained in this news release is inconsistent with the information contained in the Company’s audited financial statements, the financial information contained in this news release shall be deemed to be modified or superseded by the Company’s audited financial statements. The making of a modifying or superseding statement shall not be deemed an admission for any purposes that the modified or superseded statement, when made, constituted a misrepresentation for purposes of applicable securities laws.

 

 

VIREO HEALTH INTERNATIONAL, INC.
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION
As at June 30, 2020 and December 31, 2019
(Unaudited – Expressed in United States Dollars)

June 30,
2020

December 31,
2019

ASSETS

Current Assets

Cash

$5,726,699

$7,641,673

Restricted Cash

1,592,500

1,592,500

Receivables

706,964

1,025,963

Inventories

38,884,568

32,437,308

Biological Assets

15,694,537

6,134,209

Prepaid Expenses

1,514,635

2,285,548

Deferred acquisition costs

28,136

28,136

    Assets Held for Sale

16,854,142

–

81,002,181

51,145,337

Long-Term Assets

Right of Use Assets

21,299,482

25,921,603

Property and Equipment

13,447,308

13,326,337

Deposits

1,915,101

2,651,366

Deferred Loss on Sale Leaseback

–

30,481

Goodwill

3,132,491

3,132,491

Intangible Asset

8,692,856

9,001,237

48,487,238

54,063,515

Total Assets

$129,489,419

$105,208,852

LIABILITIES AND SHAREHOLDERS’ EQUITY

Current Liabilities

Accounts Payable and Accrued Liabilities

$4,747,430

$3,140,086

Current portion of Right of Use Liability

432,616

619,827

Derivative Liability

4,521,230

–

    Liabilities Held for Sale

13,506,842

–

23,208,118

3,759,913

Long-Term Liabilities

Deferred Income Taxes

9,090,000

4,528,000

Right of Use Liability

24,118,123

28,665,681

Long-Term Debt

1,110,000

1,110,000

Convertible debt

856,786

817,446

58,383,027

38,881,040

Shareholders’ Equity

Share Capital

122,511,602

118,453,142

Reserves

19,683,869

7,962,509

Deficit

(71,089,079)

(60,087,839)

71,106,392

66,327,812

Total Liabilities and Shareholders’ Equity

$129,489,419

$105,208,852

 

 

 

 

VIREO HEALTH INTERNATIONAL, INC.
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF LOSS AND COMPREHENSIVE LOSS
For the Three Months Ended June 30, 2020 and 2019
(Unaudited – Expressed in United States Dollars)

Three Months Ended
June 30,
2020

Three Months Ended
June 30,
2019

REVENUE

10,763,125

6,748,691

Production Costs

(7,283,163)

(3,723,355)

Gross Profit Before Fair Value Adjustments

3,479,962

3,025,336

Realized Fair Value Amounts Included in Inventory Sold

(5,279,567)

(7,627,275)

Unrealized Fair Value Gain on Growth of Biological Assets

16,661,446

11,900,180

Gross Profit

14,861,841

7,298,241

EXPENSES

Depreciation

497,793

168,301

Professional fees

755,244

947,884

Salaries and wages

2,834,481

1,648,858

Selling, general and administrative expenses

2,362,763

2,407,698

Share-Based Compensation

8,985,422

255,765

15,435,703

5,428,506

OTHER INCOME (EXPENSE)

Loss on sale of property and equipment

–

(643)

Interest income (expense), net

(1,206,705)

(721,697)

Accretion expense

(20,142)

(40,591)

Gain (Loss) on derivative liability

(2,292,130)

–

Acquisition related costs

–

(772,110)

Inventory impairment

(89,154)

(479,803)

Other income (expense)

208,388

197,068

Total Other Expense

(3,399,743)

(1,817,776)

INCOME (LOSS) BEFORE INCOME TAXES 

(3,973,605)

51,959

Current income taxes

(1,395,000)

(460,000)

Deferred income taxes

(2,323,000)

(185,000)

PROVISION FOR INCOME TAXES

(3,718,000)

(645,000)

LOSS FROM CONTINUING OPERATIONS

(7,691,605)

(593,041)

LOSS FROM DISCONTINUED OPERATIONS

(1,285,856)

(1,279,416)

LOSS AND COMPREHENSIVE LOSS

(8,977,461)

(1,872,457)

Weighted Average Shares Outstanding – basic and diluted

98,871,038

23,272,657

Net Loss Per Share – basic and diluted

–          Continuing Operations

(0.08)

(0.03)

–          Discontinued Operations

(0.01)

(0.05)

 

 

 

 

 

VIREO HEALTH INTERNATIONAL, INC.
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS
For the Six Months Ended June 30, 2020 and 2019
(Unaudited – Expressed in United States Dollars)

Six Months Ended
June 30,
2020

Six Months Ended
June 30,
2019

Cash Flows from Operating Activities:

     Net income (loss)

(11,001,240)

(5,319,214)

     Item not affecting cash: 

     Depreciation and amortization

1,153,659

1,021,416

     Loss on sale of property and equipment

13,800

(1,013)

     Share-based compensation

11,721,360

456,952

     Loss on derivative liability

966,202

–

     Fair value adjustment on sale of inventory

12,962,945

10,589,640

     Fair value adjustment on growth of biological assets

(32,113,318)

(19,834,013)

     Interest expense

2,355,070

1,448,205

     Deferred income taxes

4,562,000

1,652,000

     Deferred financing costs

–

448,480

     Listing expense

–

2,999,986

     Amortization of deferred tenant improvements

–

(652)

     Deferred gain/loss on sale leaseback

30,481

(2,846)

     Cash flows used in discontinued operations

2,959,190

276,722

     Changes in non-cash working capital

2,137,538

(1,312,381)

Cash Flows Used in Operating Activities

(4,252,313)

(7,576,718)

Cash Flows from Investing Activities:

Purchase of property and equipment

(1,249,717)

(3,680,949)

Proceeds on sale of property and equipment

–

974,162

Acquisition costs on business combinations and assets

–

(16,073,617)

Deferred acquisition costs

–

1,816,863

Deposits

16,265

–

Cash flows used in discontinued operations

(152,368)

(247,610)

Cash Flows from Investing Activities

(1,385,820)

(17,211,151)

Cash Flows from Financing Activities:

Proceeds from sale of stock, net of issuance costs

7,613,490

47,542,878

Lease payments

(351,010)

(126,251)

Interest paid

(2,122,422)

(1,356,273)

Cash flows used in discontinued operations

(1,047,414)

(556,139)

Cash Flows from Financing Activities

4,092,644

45,504,215

Net Change in Cash 

(1,545,489)

20,716,346

Cash, Beginning of the Period

7,641,673

9,624,110

Cash, End of the Period

6,096,184

30,340,456

 

 

Reconciliation of Non-IFRS Financial Measures

Adjusted Net loss, EBITDA, Adjusted EBITDA, and Adjusted Operating Expenses are non-IFRS measures and do not have standardized definitions under IFRS. The following information provides reconciliations of the supplemental non-IFRS financial measures, presented herein to the most directly comparable financial measures calculated and presented in accordance with IFRS. The Company has provided the non-IFRS financial measures, which are not calculated or presented in accordance with IFRS, as supplemental information and in addition to the financial measures that are calculated and presented in accordance with IFRS. These supplemental non-IFRS financial measures are presented because management has evaluated the financial results both including and excluding the adjusted items and believe that the supplemental non-IFRS financial measures presented provide additional perspective and insights when analyzing the core operating performance of the business. These supplemental non-IFRS financial measures should not be considered superior to, as a substitute for or as an alternative to, and should be considered in conjunction with, the IFRS financial measures presented.

Reconciliation of Net Loss to Adjusted Net Loss and Adjusted EBITDA

 

Three Months Ended

Six Months Ended

June 30,

June 30,

2020

2019

2020

2019

Net loss

(8,977,461)

(1,872,457)

(11,001,240)

(5,319,214)

Net fair value adjustments

(11,381,880)

(4,272,905)

(19,150,373)

(9,244,373)

Listing expense

–

–

–

3,464,613

Gain (Loss) on Derivative Liability

2,292,130

–

966,202

–

Inventory adjustment

89,154

479,803

165,290

752,696

Share-based compensation

8,985,422

255,765

11,721,360

456,952

Severance Expense

339,997

–

339,997

–

Loss from discontinued operations

1,285,856

1,279,416

2,005,773

2,174,418

Adjusted net loss (non-IFRS)

(7,366,782)

(4,130,378)

(14,952,991)

(7,714,908)

Net loss

(8,977,461)

(1,872,457)

(11,001,240)

(5,319,214)

Interest expense, net

1,206,705

721,697

2,355,070

1,390,477

Accretion expense

20,142

40,591

39,340

50,262

Income taxes

3,718,000

645,000

6,462,100

2,857,000

Depreciation

497,793

168,301

845,279

542,080

Amortization

154,190

691,364

308,380

785,044

Loss from discontinued operations

1,285,856

1,279,416

2,005,773

2,174,418

EBITDA (non-IFRS)

(2,094,775)

1,673,912

1,014,702

2,480,067

Net fair value adjustments

(11,381,880)

(4,272,905)

(19,150,373)

(9,244,373)

Listing expense

–

–

–

3,464,613

Gain (Loss) on Derivative Liability

2,292,130

–

966,202

–

Inventory adjustment

89,154

479,803

165,290

752,696

Share-based compensation

8,985,422

255,765

11,721,360

456,952

Severance Expense

339,997

–

339,997

–

Adjusted EBITDA (non-IFRS)

(1,769,952)

(1,863,425)

(4,942,822)

(2,090,045)

 

 

 

Reconciliation of Total Operating Expenses to Adjusted Operating Expenses

 

 

Three Months Ended

June 30,

2020

2019

Total Operating Expenses

15,435,703

5,428,506

Depreciation

(497,793)

(168,301)

Share-based compensation

(8,985,422)

(255,765)

Adjusted Operating Expenses

5,952,488

5,004,440

% of Revenue

55.3%

74.2%

 

 

 

Media Inquiries        

Investor Inquiries

Albe Zakes                 

Sam Gibbons

Vice President, Corporate Communications         

Vice President, Investor Relations

albezakes@vireohealth.com                       

samgibbons@vireohealth.com 

(267) 221-4800                            

(612) 314-8995

 

 

CisionView original content to download multimedia:http://www.prnewswire.com/news-releases/vireo-health-announces-second-quarter-2020-financial-results-301118468.html

SOURCE Vireo Health International, Inc.

Posted on

MindMed Announces Chief Executive Officer Transition

Mind Medicine (MindMed) Inc. (NASDAQ: MNMD), (NEO: MMED), (DE: MMQ) (the “Company”), a leading clinical-stage pharmaceutical company and pioneer in the field of psychedelic inspired medicines, announces that J.R. Rahn, the Company’s co-founder and chief executive officer, is stepping down as chief executive officer and a director, and that its chief development officer, Robert Barrow, will assume the position of chief executive officer with immediate effect. The Company will also initiate a comprehensive search for a chief executive officer, in which Mr. Barrow will be a candidate, and Mr. Rahn will advise the Company during its leadership transition. The transition of the Company’s leadership team will enable the Company to pursue aggressively its clinical development programs and development of its companion innovative digital technologies.

In reflecting on his tenure, Mr. Rahn noted “under my leadership the Company did a remarkable job of getting off to its unprecedented start, and building itself into a leader in the psychedelic medicine industry.”

During Mr. Rahn’s tenure as chief executive officer, he helped to assemble a diverse clinical pipeline, establish world class research partnerships and was an instrumental part of the leadership team as MindMed went public on the NEO Exchange in Canada last year and recently listed on the Nasdaq Stock Market. Under Mr. Rahn’s leadership, the Company has raised over US$204 million (net of costs), making it one of the most well-capitalized companies in the psychedelic medicine industry. Mr. Rahn led the hiring of the Company’s world-class drug development and technology team capable of bringing psychedelic inspired medicines to market through a regulatory pathway worldwide.

Mr. Rahn said, “Since starting MindMed, it has been our goal to progress psychedelic medicines to one day help heal patients with mental illnesses. Our work to date and ability to raise capital has taken us leaps and bounds closer to that vision. This chief executive officer transition is a natural progression for MindMed as the Company heads into later stage clinical trials. I am thankful for the incredible team of scientists, doctors, innovators and investors who continue to support MindMed. This all could not have been possible without you.”

Robert Barrow is an accomplished pharmaceutical executive with over a decade of experience leading organizations and drug development programs in a variety of disease areas. Mr. Barrow is a recognized leader in the psychedelic industry, in which he has played a central role in the design and execution of a number of successful regulatory and drug development strategies.

Mr. Barrow previously served as director of Drug Development & Discovery at Usona Institute, where he led preclinical, clinical and regulatory development efforts for Usona’s psychedelic drug candidates and was responsible for obtaining Breakthrough Therapy Designation for psilocybin in the treatment of Major Depressive Disorder. Prior to his tenure at Usona, Mr. Barrow served as chief operating officer and a director of Olatec Therapeutics where he oversaw the execution of numerous early and late-stage clinical trials in the fields of analgesics, rheumatology, immunology and cardiovascular disease. Mr. Barrow has also served as a technical and strategic advisor to numerous large and small pharmaceutical companies developing novel central nervous system therapeutics and has been an invited speaker at multiple industry and scientific presentations. Mr. Barrow holds a Master’s degree in Pharmacology from The Ohio State University and a Bachelor of Science degree from Wake Forest University, where he graduated summa cum laude.

Mr. Barrow added, “We would not be here without J.R.’s vision and perseverance to establish us as a pioneer in this fast evolving new industry. I am incredibly excited to step into this new role and honored by the confidence placed in me by J.R., my colleagues and the board of directors. Having worked closely with J.R. and the entire organization over the past half-year, I am confident that this transition will be seamless. I look forward to continuing the execution of our core mission and strategies. We remain committed to continuing to advance MindMed as a leader in the psychedelic medicine industry and as a central nervous system-focused pharmaceutical company more broadly.”

This progression of management will bolster MindMed’s ability to execute on its drug development and digital medicine strategies with an executive team united behind Mr. Barrow, including Dr. Miri Halperin Wernli, PhD as executive president and director; Dr. Daniel R. Karlin, MD, MA as chief medical officer; Bradford Cross as chief technology officer; and Dave Guebert as chief financial officer.

As part of the chief executive officer transition, the Company has agreed to issue Mr. Rahn 1.5 million subordinate voting shares, which issuance is subject to applicable regulatory approvals

About MindMed

MindMed is a clinical-stage psychedelic medicine biotech company that seeks to discover, develop and deploy psychedelic-inspired medicines and therapies to address addiction and mental illness. The Company is assembling a compelling drug development pipeline of innovative treatments based on psychedelic substances including psilocybin, LSD, MDMA, DMT and an Ibogaine derivative, 18-MC. The MindMed executive team brings extensive biopharmaceutical experience to MindMed’s approach to developing the next generation of psychedelic-inspired medicines and therapies.

MindMed trades on the NASDAQ under the symbol MNMD and on the Canadian NEO exchange under the symbol MMED. MindMed is also traded in Germany under the symbol MMQ.

Forward-Looking Statements

Certain statements in this news release related to the Company constitute “forward-looking information” within the meaning of applicable securities laws and are prospective in nature. Forward-looking information is not based on historical facts, but rather on current expectations and projections about future events and are therefore subject to risks and uncertainties which could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements. These statements generally can be identified by the use of forward-looking words such as “will”, “may”, “should”, “could”, “intend”, “estimate”, “plan”, “anticipate”, “expect”, “believe”, “potential” or “continue”, or the negative thereof or similar variations. Forward-looking information in this news release includes statements regarding the Company’s future strategies and business plans, the Company’s development programs and clinical trials, and the Company’s executive team and consulting arrangements. Although the Company believes that the expectations reflected in such forward-looking information are reasonable, such information involves risks and uncertainties, and undue reliance should not be placed on such information, as unknown or unpredictable factors could have material adverse effects on future results, performance or achievements of the Company. There are numerous risks and uncertainties that could cause actual results and the Company’s plans and objectives to differ materially from those expressed in the forward-looking information, including the Company’s history of negative cash flows; limited operating history; incurrence of future losses; availability of additional capital; lack of product revenue; compliance with laws and regulations; difficulty associated with research and development; risks associated with clinical trials or studies; heightened regulatory scrutiny; early stage product development; clinical trial risks; regulatory approval processes; novelty of the psychedelic inspired medicines industry; as well as those risk factors discussed or referred to herein and the risks described under the headings “Risk Factors” in the Company’s filings with the securities regulatory authorities in all provinces and territories of Canada which are available under the Company’s profile on SEDAR at www.sedar.com and with the U.S. Securities and Exchange Commission on EDGAR at www.sec.gov. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking information prove incorrect, actual results and future events could differ materially from those anticipated in such information. Although the Company has attempted to identify important risks, uncertainties and factors that could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended. These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. Except as required by law, the Company does not intend and does not assume any obligation to update this forward-looking information.

Media Contact: mindmed@150bond.com

Posted on

MindMed Joins Digital Medicine Society to Improve Health Outcomes and Equity Using Technology

MindMed (Nasdaq: MNMD, NEO: MMED, DE: MMQ), a leading biotech company developing psychedelic-inspired therapies, announced today that it will participate in and financially support the Digital Medicine Society’s (DiMe) Digital Health Measurement Collaborative Community (DATAcc), an effort to develop best practices and streamline the medical field’s approaches to measuring health using digital technologies.

DATAcc comprises leaders from across the US government, non-profit, and private sectors, including the US Food and Drug Administration (FDA) , the US Department of Health and Human Services, healthcare systems, medical technology companies, patient advocates, biopharma, and policy organizations. The collaborative will use interdisciplinary expertise, data, and cases to address complex medical device challenges.

DATAcc members, including Dr. Dan Karlin, Chief Medical Officer of MindMed, will meet for the first time today, marking the launch of this collaborative community dedicated to realizing the full potential of digital health measurement as a powerful new tool to drive improvements in health outcomes, health economics, and health equity. Activities will be action-oriented, ranging from the development of best practices, models, and frameworks to conducting pilots, and will be driven by the diverse membership of DATAcc.

Ensuring access to effective and safe technologies requires a multitude of perspectives and expertise to address, including those of regulators. As stated in DiMe’s press release dated May 25, 2021, “it is important to empower stakeholders to ensure equitable access to high quality, safe, and effective digital health technologies,” says Anindita Saha, Assistant Director of the Digital Health Center of Excellence in the Center for Devices and Radiological Health, who will be the FDA liaison to DATAcc. “DATAcc can advance efforts to build the science and evidence generation for all people by keeping health outcomes and health equity front and center.”

Dr. Daniel Karlin, Chief Medical Officer of MindMed, added, “We are eager to advance the science of digital medicine through cooperation and collaboration. Historically, medicine has relied on infrequent, subjective, physician oriented measurements, which are largely carried out in the clinical setting. This is especially true in psychiatry. The reality is that illnesses, and the burdens they place on the patient experience, have far more to do with how folks feel and function when they’re in their home environments and not in the clinic. We see digital medicine and real world measurement as being core to better understanding the conditions we are studying for treatment with psychedelic-inspired medicines, and demonstrating that our medicines are effective in helping treat individual suffering while reducing the myriad costs of these illnesses through enabling patient journeys toward recovery.”

Together, on a continuing basis, the collaborative community will explore six priority areas that include data governance, data rights, digital inclusion, reimbursement, commercial models, and the standardization of elements of digital sensing products and the data they produce.

About MindMed

MindMed is a clinical-stage biotech company that discovers, develops and deploys psychedelic inspired medicines and therapies to address addiction and mental health. The Company is assembling a compelling drug development pipeline of innovative treatments based on psychedelic substances including psilocybin, LSD, MDMA, DMT and an ibogaine derivative, 18-MC.

MindMed trades on the NASDAQ under the symbol MNMD and on the Canadian NEO Exchange under the symbol MMED. MindMed is also traded in Germany under the symbol MMQ. For more information: www.mindmed.co

MindMed Forward-Looking Statements

Certain statements in this news release related to the Company constitute “forward-looking information” within the meaning of applicable securities laws and are prospective in nature. Forward-looking information is not based on historical facts, but rather on current expectations and projections about future events and are therefore subject to risks and uncertainties which could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements. These statements generally can be identified by the use of forward-looking words such as “will”, “may”, “should”, “could”, “intend”, “estimate”, “plan”, “anticipate”, “expect”, “believe”, “potential” or “continue”, or the negative thereof or similar variations. Forward-looking information in this news release include statements regarding MindMed’s involvement with DiMe and DATAcc, the ability to develop digital technologies, participation of various members in DATAcc and the success of creating digital technologies. Although the Company believes that the expectations reflected in such forward-looking information are reasonable, such information involves risks and uncertainties, and undue reliance should not be placed on such information, as unknown or unpredictable factors could have material adverse effects on future results, performance or achievements of the Company. There are numerous risks and uncertainties that could cause actual results and the Company’s plans and objectives to differ materially from those expressed in the forward-looking information, including history of negative cash flows; limited operating history; incurrence of future losses; availability of additional capital; lack of product revenue; compliance with laws and regulations; difficulty associated with research and development; risks associated with clinical trials or studies; heightened regulatory scrutiny; early stage product development; clinical trial risks; regulatory approval processes; novelty of the psychedelic inspired medicines industry; as well as those risk factors discussed or referred to herein and the risks described under the headings “Risk Factors” in the Company’s filings with  the securities regulatory authorities in all of the provinces and territories of Canada and available under the Company’s profile on SEDAR at www.sedar.com and with the U.S. Securities and Exchange Commission on EDGAR at  www.sec.gov. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking information prove incorrect, actual results and future events could differ materially from those anticipated in such information. Although the Company has attempted to identify important risks, uncertainties and factors that could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended. These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. Except as required by law, the Company does not intend and does not assume any obligation to update this forward-looking information.

arrow

Posted on

Core One Labs Appoints New Chief Financial Officer

Vancouver, British Columbia, Canada – August 19, 2020 – Core One Labs Inc. (CSE: COOL), (OTCQX: CLABD), (Frankfurt: LD62, WKN: A2P8K3) (the “Company”) is pleased to announce that, effective immediately, Mr. Geoff Balderson has been appointed as Chief Financial Officer and Secretary of the Company. Mr. Balderson has an extensive background in business and has worked in the capital markets for over 20 years. He currently acts as an officer and director of multiple TSX Venture and Canadian Securities Exchange listed companies. Mr. Balderson is the President of Harmony Corporate Services Ltd., a Vancouver based company that provides administrative services to publicly listed companies. Prior to this he was an Investment Advisor with two Canadian investment dealers. Mr. Balderson is a graduate of the Sauder School of Business at the University of British Columbia.

About Core One Labs Inc.

Core One Labs Inc. is a technology company that licenses its technology to a state-of-the-art production and packaging facility located in Southern California. The Company’s technology produces infused strips (like breath strips) that are not only a safer, healthier option to other forms of delivery but also superior bioavailability of cannabis constituents. Some strips will also include supplemental co-active ingredients such as nutraceuticals, vitamins and peptides. The technology provides a new way to accurately meter the dosage and assure the purity of selected product.

Core One Labs Inc.

Joel Shacker

Chief Executive Officer

FOR MORE INFORMATION, PLEASE CONTACT:

InvestorRelations@core1labs.com

1-866-347-5058

Cautionary Disclaimer Statement:

The Canadian Securities Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this news release.

Information set forth in this news release contains forward-looking statements that are based on assumptions as of the date of this news release. These statements reflect management’s current estimates, beliefs, intentions and expectations. They are not guarantees of future performance. The Company cautions that all forward looking statements are inherently uncertain and that actual performance may be affected by a number of material factors, many of which are beyond the Company’s control. Such factors include, among other things: risks and uncertainties relating to the Company’s limited operating history and the need to comply with environmental and governmental regulations. In addition, marijuana remains a Schedule I drug under the United States Controlled Substances Act of 1970.  Although Congress has prohibited the US Justice Department from spending federal funds to interfere with the implementation of state medical marijuana laws, this prohibition must be renewed each year to remain in effect.  Accordingly, actual and future events, conditions and results may differ materially from the estimates, beliefs, intentions and expectations expressed or implied in the forward looking information. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise forward-looking information.

Posted on

BETTER ENTERS AGREEMENT TO ACQUIRE JUSU PLANT-BASED ASSETS FOR $2.25 MILLION

August 18,  2020 – Vancouver, BC: Better Plant Sciences Inc. (CSE:PLNT) (OTCQB:BOSQF) (FE:YG3) (“Better”)

announces that it has entered into an agreement to acquire JUSU branded plant-based assets from JUSU Bar Inc., JUSU Life Inc. and JUSU Cbd Inc. The assets include all inventory, packaging, raw ingredients, and intellectual property related to 300 plant-based products for the home, body and baby, as well as the e-commerce sites where the products are sold, the customer lists and all intangible assets relating to the chain of juice bars operated in British Columbia and Alberta under the name JUSU.

The purchase price of CAD $2.25 million will be paid in units consisting of escrowed securities and warrants. 22,500,000 shares shall be issued to JUSU Group with a trading restriction of no more than 30,000 shares per day, with trading restrictions extending over a 2.5 year period.  22,500,000 warrants to buy shares at $0.11 each are issued with a four month hold. Better Plant Sciences will not take on any liabilities or obligations as part of the deal. The transaction is expected to take place in the fall, once all due diligence is complete and all necessary approvals are obtained.

JUSU is a western Canadian health, wellness and lifestyle brand. It is positioned as a full spectrum wellness brand for premium plant-based products.

The asset purchase includes 300 JUSU products including:

  • JUSU Life: (156 products) cleaning and germ-fighting products, essential oils and aromatherapy
  • JUSU Body: (80 products)  baby products, body lotions and washes, bug and tick spray, hair and face products, soaps, deodorants, shaving creams and sun care
  • JUSU Bar: (35 products) cold-pressed juices, nut milks, health shots, smoothies and smoothie bowls, cold-brew, plant-based coffees, wraps and chia cups
  • JUSU Cbd: (30 formulas) cold-pressed juices, elixirs, health shots, skin care, cosmetics, aromatherapy, supplements and pet care

“I created JUSU because I was not satisfied with the products that were available on the market. I wanted to be able to provide my family with natural products that are safe and effective. That mission was at the core of everything we developed,” says Bruce Mullen, JUSU Founder and CEO. “The Better Plant Sciences team is exactly the kind of partner that I have been looking for. Their team has the knowledge, drive, and experience to take what I have built with JUSU to the next level.”

A 2019 report by BIS Research highlighted that the plant-based food and beverage alternatives market is expected to reach $80.43 billion by 2024, with a CAGR of 13.82% from 2019 to 2024. Statista estimates that the skincare segment will increase by approximately $48 billion over that same period to $189 billion by 2025.

“JUSU is an excellent fit for the Better Plant Sciences portfolio of plant-based products that promote health, humanity and sustainability,” says Penny White, CEO of Better Plant Sciences Inc. “JUSUs diverse value chain incorporates e-commerce, wholesale and franchise paths to market, and with this we are excited to diversify the ways that we reach our customers.”

 

About JUSU Inc.

JUSU is a full spectrum wellness brand with a mission to enlighten consumers to the protective and effective properties of plant based products. Its group of companies is committed to making pure, organic, plant-based products for consumption, body and personal care. This includes brick-and-mortar juice bar franchise locations as well as an extensive direct-to-consumer product offering including skin care and body products, aromatherapy and home cleaning lines. JUSU is fully dedicated to offering consumers healthier alternatives to currently available chemical-based skin care, edible, and beverage products. All JUSU Group companies provide customers only the highest-quality all-natural products made from 100% natural, non-GMO ingredients and operate under the moto: Great products for great people.

 

About Better Plant Sciences Inc.

Better Plant Sciences develops and acquires intellectual property and other assets related to plant-based products and therapeutics, and develops, manufactures, markets, sells and distributes plant-based products that improve lives. It has over 200 proprietary wellness formulas at various stages of commercialization, including over 20 products that are now for sale through e-commerce or brick and mortar retail stores. It has 14 patent applications to protect its formulas. Its majority owned subsidiary NeonMind Biosciences Inc. is engaged in research into developing a psilocybin (psychedelic mushroom) based product for weight loss and is developing a line of coffees infused with health optimizing medicinal mushrooms including chaga, lionsmane and cordyceps.

 

Investor Relations Contact:

 

Kevan Matheson, Investor Relations

invest@betterplantsciences.com

1-833-514-2677

The Canadian Securities Exchange has not reviewed, approved or disapproved the contents of this news release.

 

Cautionary Statement Regarding Forward-Looking Statements

This press release includes forward-looking information and statements (collectively, “forward looking statements”) under applicable Canadian securities legislation.  Forward-looking statements are necessarily based upon a number of estimates, forecasts, beliefs and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause actual results and future events to differ materially from those expressed or implied by such forward-looking statements.  Such risks, uncertainties and factors include, but are not limited to: risks related to the development, testing, licensing, brand development, availability of packaging, intellectual property protection, reduced global commerce and reduced access to raw materials and other supplies due to the spread of the Coronavirus, the potential for not acquiring any rights as a result of the patent  application and any products making use of the intellectual property may be ineffective or the company may be unsuccessful in commercializing them; and other approvals will be required before commercial exploitation of the intellectual property can happen.  Demand for the company’s products, general business, economic, competitive, political and social uncertainties, delay or failure to receive board or regulatory approvals where applicable, and the state of the capital markets.  Better cautions readers not to place undue reliance on forward-looking statements provided by Better, as such forward-looking statements are not a guarantee of future results or performance and actual results may differ materially. The forward-looking statements contained in this press release are made as of the date of this press release, and Better expressly disclaims any obligation to update or alter statements containing any forward-looking information, or the factors or assumptions underlying them, whether as a result of new information, future events or otherwise, except as required by law.

Posted on

TRYP THERAPEUTICS PARTNERS WITH ALBANY MOLECULAR RESEARCH INC. TO MANUFACTURE A PROPRIETARY PSILOCYBIN-BASED DRUG

La Jolla, CA – August 13, 2020 – Tryp Therapeutics Inc. (“Tryp” or the “Company”), a clinical-stage pharmaceutical company developing therapeutics targeting diseases with high unmet medical needs, announced today it has entered into an agreement with Albany Molecular Research Inc. (“AMRI”), a leading global contract research, development and manufacturing organization, to provide research, development and cGMP manufacturing of a proprietary psilocybin active pharmaceutical ingredient (“API”) to support the clinical development of TRP-8802, TRP-8803 and TRP-8804 programs.

“Working with AMRI as our U.S.-based active pharmaceutical ingredient supplier is a critical component of our rapid clinical development strategy and we very pleased to have engaged them to support our neuropsychiatric programs. By working with AMRI, we are able to create additional intellectual property around the manufacture and use of our proprietary psilocybin API.” said Larry Norder, Vice President of Manufacturing of Tryp.  Mr. Norder further commented, “AMRI’s excellent industry reputation, size, and wealth of experience with manufacturing API under cGMP brings very high credibility to our efforts to develop psilocybin as a therapeutic for indications with high unmet medical needs.”

“AMRI is proud to support Tryp Therapeutics in their mission to address diseases with highly unmet needs through the rapid development and scale-up of a novel process to advance Psilocybin into human clinical trials,” said Christopher Conway, president, AMRI.  “We are leveraging our core expertise in process development and cGMP manufacturing to help progress Tryp’s clinical pipeline.”

About Tryp Therapeutics:

Tryp Therapeutics is a clinical stage drug development company led by a management team with extensive drug development experience that is advancing transformative medicines with existing clinical data and known safety profiles for diseases with no effective first-line treatments. The company is building a diversified portfolio of product candidates targeting neuropsychiatric and oncology indications with high unmet medical needs.

About AMRI

AMRI, a contract research development and manufacturing organization, partners with the pharmaceutical and biotechnology industries to improve patient outcomes and quality of life. AMRI’s team combines scientific expertise and market-leading technology to provide a complete suite of solutions in discovery, development, analytical services, and API and drug product manufacturing. www.amriglobal.com

Contact:
TRYP Therapeutics Inc.
James Kuo, MD, Chief Executive Officer
E: jkuo@trytherapeutics.com
T: 1-833-811-TRYP (8797)

Forward Looking Statements
Certain statements in this press release may constitute forward-looking information. All statements other than statements of historical fact contained in this press release, including, without limitation, those regarding Tryp’s future, strategy, plans, objectives, goals and targets, and any statements preceded by, followed by or that include the words “believe”, “expect”, “aim”, “intend”, “plan”, “continue”, “will”, “may”, “would”, “anticipate”, “estimate”, “forecast”, “predict”, “project”, “seek”, “should” or similar expressions or the negative thereof, are forward-looking statements. These statements are not historical facts but instead represent only Tryp’s expectations, estimates and projections regarding future events. These statements are not guaranteeing future performance and involve assumptions, risks and uncertainties that are difficult to predict. Therefore, actual results may differ materially from what is expressed, implied or forecasted in such forward-looking statements. The forward-looking information and forward-looking statements included in this press release are made as of the date of this press release. The Company does not undertake an obligation to update such forward-looking information or forward-looking information to reflect new information, subsequent events or otherwise unless required by applicable securities law.

Posted on

Vireo Health to Report Second Quarter 2020 Results on August 26, 2020

VIEW ALL NEWS

Posted on

Overview of the worsening opioid crisis in Canada

Overview of the worsening opioid crisis in Canada and how DMT can help

Written by Jessica Cadoch

Oxycodone, Codeine, Morphine and Heroin are all classified opiates. These substances are procedurally offered by medical experts as painkillers and seek to relieve patients from deep suffering.

However, these substances are also highly addictive, and there is no thorough protocol to get patients off these substances once their prescription runs out. As a result, thousands of patients grow reliant on these medicines. Often, These individuals turn to illicitly-obtained opiates to support their increasing dependence on prescription medications. These alternatives include synthetically manufactured substances, some of which are up to thousands of times more potent than commonly-prescribed opioids. North America’s deadly opioid crisis has dominated countless news headlines over the past few years, but maybe you didn’t know precisely where it was born.

Advertised as the first ‘minimally addictive’ opioid, OxyContin (manufactured by Purdue Pharmaceuticals) managed to surpass heroin abuse rates in 2004. By 2010, prescription opiates “became the most abused class of substances among US high school seniors (National Institute of Drug Abuse [NIDA] 2011)… Purdue Pharmaceutical paid $634 million in fines for criminal charges based on misrepresentation of Oxycontin’s addictive potential (Van Zee 2009)”.

In the last six months, in the face of the COVID-19 pandemic, we have seen a dramatic spike in opioid overdoses, adding more layers of destruction and devastation on an already isolated, uncertain, and grieving society due to the distancing measures, deaths and job losses that hallmarked this pandemic.

Overview of the worsening opioid crisis in Canada
Alberta’s EMS teams have responded to the spike in opioid use calls since the COVID-19 pandemic.

What is happening with opioid misuse in Canada?

Due to a culmination of factors that include closed borders, a subsequent dip in supply and a lack of availability to clean substances, opiate overdoses in Canada increased drastically during COVID-19 isolation mandates.

Ontario has reported a 25% rise in fatal overdoses. A severe spike in opioid-related deaths prompts warning that carfentanil, an analogue of the synthetic opioid, fentanyl, is present in Edmonton’s street drugs, and is reportedly 100 times more potent than fentanyl, 5,000 times more potent than heroin and 10,000 times more potent than morphine.

“We now know that carfentanil is circulating. It’s in injectables and smokables, both up and down. Don’t use alone, have naloxone nearby, use a fraction of your usual dose.” – StreetworksAB
Alberta’s EMS teams have responded to the spike in opioid use calls since the COVID-19 pandemic. Furthermore, after serious efforts to implement SIS (safe injections sites) in British Columbia, with a 39% increase in overdose deaths in April alone, they are bearing witness to a resurgence in the opioid crisis. Finally, in the Yukon, opioid-related overdoses have doubled in the last year. Unsurprisingly, Canada’s Chief Public Health Officer, Dr. Theresa Tam calls the current crisis an “increasing concern” and an “unintended negative consequence” from the pandemic response.

The opposite of addiction is believed by some not to be sobriety, but to be “connection.”

Canada’s opioid response options

Journalist and addiction specialist Johann Hari famously noted that the opposite of addiction is not sobriety, but connection.

Over the past 20 years, alongside the opioid crisis, there has been a resurgence in interest in researching the healing potentials of psychedelic substances such as MDMA, Psilocybin, and DMT to treat Addiction, PTSD, Depression, and end-of-life distress.

Upon quantifying a mystical experience and developing the Mystical Experiences Questionnaire, researchers at Johns Hopkins University, including Dr. Roland Griffiths, Dr. Matthew Johnson and Dr. Katherine MacLean, noted that psychedelic substances foster feelings of connection to others, nature, and the self.

Before the creation of this questionnaire, in 1960, philosopher Walter Stace examined the qualities of a mystical experience, noting that “the core experience of unity was “the essence of all mystical experience” (Stace 1960:132)” (MacLean et al. 2012, 722).

Suppose substance use disorders stem partly from a loss of connection to self and community, as Hari notes, and psychedelic substances can foster these feelings of attachment to others, nature and self. Why then is psychedelic-assisted therapy for the treatment of addiction not more widely available for the treatment of addiction?

Bringing psychedelic substances into the world of Western Biomedicine is a long and slow endeavour. Many researchers are pooling their efforts towards making psychedelic-assisted therapy more accessible to those suffering from substance misuse.

Entheon Biomedical believes that it is time that the narrative around psychedelic-assisted therapy takes a sharp turn away from the stigma. We are committed to the legal development of safe & effective psychedelic medicines, particularly DMT. DMT, the active ingredient in ayahuasca, is a psychedelic that is traditionally used in spiritual practices by indigenous communities of the Amazon basin. Our researchers are confident that DMT can be beneficial to those who are dependent on harmful substances.

Contrary to other psychedelic substances undergoing FDA clinical trials in the US, DMT’s psychedelic onset is typically very rapid and intense, beginning within two minutes. Isolating DMT could result in a drug that delivers a much shorter psychedelic experience than the four to eight-hour type a patient would expect with ayahuasca, psilocybin, or MDMA.

A shorter experience could open up psychedelic-assisted treatment to more people at a fraction of the cost. One of the issues at the forefront of clinical trials and expanded access programs for psychedelic-assisted therapy is the financial accessibility of this therapy. Psychedelic-assisted therapy sessions with MDMA or with psilocybin-containing mushrooms last anywhere between 4-7 hours. Within these protocols, it is mandatory to have two therapists present during the therapy session. To compensate two therapists for 4-7 hours is a costly endeavour.

By isolating DMT, it may be possible to achieve shorter-lasting psychedelic experiences, which could lessen the length of psychedelic-assisted therapy sessions without diminishing efficacy. By shortening a patient’s time in the clinic, we would undoubtedly minimize the cost of this safe, effective, yet challenging to access therapy. With the opioid crisis worsening in Canada and beyond, we grow even more hopeful that Entheon Biomedical’s findings will help lay the groundwork for a more effective and compassionate treatment for substance use disorder.

“Having lost my brother to opiate addiction, I can attest to the devastation and chaos brought on by opiate use. As the lethality of these substances rises, the efficacy of currently available treatments remains unchanged, and hundreds of lives are lost each month in British Columbia alone. There should be an acceleration of efforts to provide new solutions rooted in a better understanding of the causes of addiction.” —Timothy Ko, Entheon CEO

Trackbacks/Pingbacks

  1. Opioid Crisis in Canada—the Communities it Disproportionately Affects – Entheon Biomedical – […] August 12, we wrote about the current opioid crisis and the uptick on opioid-related overdoses and deaths in Canada.…
Posted on

Vireo Health Completes Sale of Equity in Pennsylvania Medical Solutions to Jushi Holdings Inc. for Total Consideration of $37 Million

VIEW ALL NEWS

Posted on

Core One Labs Provides Update on Financial Statements and Management Cease Trade Order

Vancouver, British Columbia, Canada – July 15, 2020 – Core One Labs Inc. (CSE: COOL), (OTCQX: CLABD), (Frankfurt: LD62, WKN: A2P8K3) (the “Company”). The Company wishes to advise its valued shareholders that the new management team (“Management”) is currently working with its auditor and accountants around the clock to finalize its audited financial statements and the related management’s discussion and analysis (“MD&A”) for the year-ended December 31, 2019. With the majority of the Company’s operations being located in California, COVID -19 has caused delays to the audit that are beyond Management’s control due to the ongoing border closure with the United States, travel restrictions arising from the ongoing pandemic, and related lockdowns imposed by the State of California.

Management continues to work closely with its auditor to ensure the audit is completed as close to the July 15th deadline as possible. At the outset, Management was able to identify the areas of the audit which required the most amount of attention, and moved to address those immediately, including deploying funds from the recently completed financing to settle an outstanding account with the auditors. Daily update calls are being done with the auditors and accountants to ensure the auditors have the full support of Management to expedite this process and ensure that shareholder value is not lost due to a prolonged cease trade.

The Company confirms that it has the financial resources necessary to complete the audit, and now anticipates being in a position to file the audited financial statements for the year-ended December 31, 2019, along with the interim financial statements for the three-month period ended March 31, 2020, and their related MD&A (collectively, the “Required Filings”), by July 31, 2020.

“With new management coming on board, our goal is to create shareholder value and build a strong Company. Although there were some clean-up issues when we took over management of the Company, we feel that we have a handle on all items that impact the Company, and are excited about moving the Company forward. The Company is now properly capitalized with two operating assets which are generating monthly revenue. I feel that we are in a strong position to grow the business and create shareholder value, once we get through this challenge,” said Joel Shacker, CEO of the Company.

The Company is currently subject to a management cease trade order (“MCTO”) issued by the British Columbia Securities Commission (“BCSC”) on June 16, 2020. The BCSC has now notified the Company that it will not consent to an extension of the MCTO beyond July 15, 2020, and as a result the Company anticipates that a general cease trade order will be issued by the BCSC. It is anticipated that a general cease trade order will remain in effect, and trading in the securities of the Company will be suspended, until the Required Filings are completed.

About Core One Labs Inc.

Core One Labs Inc. is a technology company that licenses its technology to a state-of-the-art production and packaging facility located in Southern California. The Company’s technology produces infused strips (like breath strips) that are not only a safer, healthier option to other forms of delivery but also superior bioavailability of cannabis constituents. Some strips will also include supplemental co-active ingredients such as nutraceuticals, vitamins and peptides. The technology provides a new way to accurately meter the dosage and assure the purity of selected product.

Core One Labs Inc.

Joel Shacker

Chief Executive Officer

FOR MORE INFORMATION, PLEASE CONTACT:

InvestorRelations@coreonelabs.ca

1-866-347-5058

Cautionary Disclaimer Statement:

The Canadian Securities Exchange, and its Regulation Services Provider, have not reviewed and do not accept responsibility for the adequacy or accuracy of the content of this news release.

Information set forth in this news release contains forward-looking statements that are based on assumptions as of the date of this news release. These statements reflect management’s current estimates, beliefs, intentions and expectations. They are not guarantees of future performance. The Company cautions that all forward looking statements are inherently uncertain and that actual performance may be affected by a number of material factors, many of which are beyond the Company’s control. Such factors include, among other things: risks and uncertainties relating to the Company’s limited operating history and the need to comply with environmental and governmental regulations. In addition, marijuana remains a Schedule I drug under the United States Controlled Substances Act of 1970. Although Congress has prohibited the US Justice Department from spending federal funds to interfere with the implementation of state medical marijuana laws, this prohibition must be renewed each year to remain in effect. Accordingly, actual and future events, conditions and results may differ materially from the estimates, beliefs, intentions and expectations expressed or implied in the forward-looking information. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise forward-looking information.