Ketamine One Reports Strong 1Q22 Financial Results
Revenues Reached Just Under $2.0 Million for the Quarter Ended October 31, 2021
VANCOUVER, British Columbia, Dec. 16, 2021 (GLOBE NEWSWIRE) — KetamineOne Capital Limited (“Ketamine One” or the “Company”) (NEO: MEDI) (OTC: KONEF) (Frankfurt: MY0), a company focused on consolidating medical clinics and becoming a North American leader in mental health treatments, is pleased to announce that it has filed its financial results for the quarter ended October 31, 2021, which is the first quarter of the Company’s 2022 fiscal year ending July 31, 2022, the highlights of which are included in this news release. The full set of Consolidated Financial Statements and Management Discussion and Analysis can be viewed by visiting the Company’s website at www.ketamine.one or its profile page on SEDAR at www.sedar.com.
Financial Highlights (all amounts expressed in Canadian Dollars unless otherwise noted)
- Revenue for the quarter ended October 31, 2021 reached $1,989,752, as compared to $nil for the same period of the prior year, which was primarily due to transitioning from an investment issuer to a single-purpose company focused on consolidating medical clinics and becoming a North American leader in mental health treatments, while the Company’s wholly owned contract research organization, KGK Science Inc., also secured a significant amount of new business in the form of four contracts with third party clinical research and regulatory service clients;
- Gross profit for the quarter ended October 31, 2021 was $594,411, as compared to $nil for the same period of the prior year, due to the aforementioned reasons;
- Net loss for the quarter ended October 31, 2021 was $9,225,769, as compared to net loss of $605,810 reported for the same period of the prior year, primarily due to share based payments of $6,156,242, service fees of $941,567 and general and administrative expenses of $691,760; and
- Total assets for the quarter ended October 31, 2021 decreased by 13% to $19,079,056 from $21,921,195 for the period ended July 31, 2021, which was mainly attributable to a decreased in cash and cash equivalents.
Management Commentary
“We are pleased with Ketamine One’s financial results for the first quarter of the 2022 fiscal year, as revenue during the three-month period ending October 31st exceeded that for all of the 2021 fiscal year. It’s a great way to start the fiscal year and I am grateful for the keen efforts of our employees across all of our subsidiaries and to our sage advisors as well,” said Adam Deffett, Interim CEO of Ketamine One. “Ketamine One continues to execute on its plan to become a leader in mental health across North America. Our businesses, including KGK Science and IRP Health, are growing in multiple ways and we are optimistic about the financial performance of the Company for the remainder of the fiscal year as we nurture our existing industry partnerships, cultivate new ones and explore other opportunities as they arise,” added Mr. Deffett.
Subsequent Highlighted Events (all amounts expressed in Canadian Dollars unless otherwise noted)
- Virtual Mental Healthcare Platform in Partnership With iHealthOX: On November 4, announced that it had entered into a telehealth and virtual health partnership to increase accessibility and service offerings to its patients (the “Telehealth Strategy”). In order to better address the needs of patients as well as incorporate the Telehealth Strategy across its portfolio of mental health clinics, contract research capabilities and its focus on digital therapeutics, the Company had also announced the launch of a new patient-facing website at www.ketamine.one/patients/home.
- Intention to Submit Draft Registration Statement for Proposed U.S. Initial Public Offering: On November 9, announced that it intended to confidentially submit a draft registration statement on Form S-1 to the U.S. Securities and Exchange Commission (the “SEC”) relating to a potential initial public offering (“IPO”) of its common shares in the United States. The IPO is expected to be for up to USD 20 Million of Ketamine One’s common shares and is currently expected by Company management to occur in the first half of 2022. The number of common shares to be offered, the use of proceeds, and the price range for the proposed IPO have not yet been determined.
- IRP Health Opened Two New Veteran-Focused Clinics: On November 16, announced that its wholly owned subsidiary, IRP Health Ltd. (“IRP” or the “Subsidiary”), opened its Comox Valley and Ottawa clinics (the “Two Clinics”). As previously announced, the Two Clinics are veteran-focused facilities and multidisciplinary in nature. To date, IRP has successfully performed over 10,000 unique treatments for past or present personnel of the Canadian Armed Forces and the Royal Canadian Mounted Police (“RCMP”), as well as first responders including firefighters, law enforcement officers, paramedics and emergency medical technicians.
- KGK Science Helps Client Receive New Dietary Ingredient Status from U.S. FDA: On December 2, announced that its wholly owned contract research organization, KGK Science Inc., successfully assisted its client, Hofseth Biocare ASA (HBC.OL) (“HBC”), to receive New Dietary Ingredient status from the United States Food and Drug Administration for its patented CalGo® and OmeGo® branded products. HBC is a leading manufacturer and marketer of unique and innovative marine-derived calcium, protein, collagen, and lipid nutritional supplements.
- Partners with Cognetivity Neurosciences in Collaborative Clinical Study on Depression and PTSD: Also on December 2, announced that it entered into a collaborative partnership with Cognetivity Neurosciences Ltd. (CSE: CGN; OTCQB: CGNSF; FWB: 1UB) (“Cognetivity”) to study and develop assessments for depression and post-traumatic stress disorder (“PTSD”). In the initial stage of the partnership, Cognetivity and Ketamine One will partner on two separate clinical studies, one for depression and the second for PTSD. Protocols for both studies have received Institutional Review Board approval and patient recruitment is expected to occur in early 2022. Ketamine One’s wholly owned subsidiary, KGK Science Inc., will lead the study, while Cognetivity will lead the analysis.
- Adds Seattle Location To US Clinical Network: On December 8, announced that it had been engaged by Dr. Tami Meraglia to establish a ketamine infusion clinic in Seattle, Washington. The new clinic will operate as Seattle Ketamine Infusions (“SKI” or the “Clinic”) and be located at 311 West Republican Street. Dr. Meraglia is focused on the areas of personalized intravenous treatments and is also a national best-selling author and frequent media guest regarding total health and wellness topics. Ketamine One will provide training, protocol development, and ongoing support for the Clinic, with the first patient treatments expected at SKI in early 2022.
- Termination of NY Ketamine acquisition: On December 13, the Company announced that it and NY Ketamine Medical Practice, PLLC (“NY Ketamine”) had mutually agreed to terminate the letter of intent previously announced on April 5, 2021 pursuant to which the Company was working to acquire NY Ketamine. Ketamine One remains active in evaluating the acquisition of clinic assets in several US states and is focused on growing its network of existing clinics across North America.
- Departure of CMO: On December 13, the Company announced that its Chief Medical Officer, Dr. Mark Kimmins, has departed the organization.
- Appointment of New CFO: On December 14, the Company announced that Joe Ramelli was appointed as Ketamine One’s new Chief Financial Officer (“CFO”) effective December 14, 2021, subject to the final acceptance of the NEO Exchange. Ketamine One’s former CFO, Peter Nguyen, amicably agreed to depart the Company and also resigned from the Company’s Board of Directors effective December 13, 2021.
Outlook (excerpt from Ketamine One’s Management Discussion & Analysis For the Period Ended October 31, 2021 and 2020)
Ketamine One is dedicated to becoming a leader in clinical offerings of ketamine-enhanced treatments across North America. We have acquired 15 clinics across North America, with letters of intent signed for an additional clinic. We are building the critical infrastructure needed to provide breakthrough and life-changing mental wellness treatments through existing clinics, experienced professionals and advanced technology.
Ketamine One will be utilizing first-of-its-kind wearable technologies to track key vitals before, during, and after psychedelic-assisted therapies. Our technology aims to empower patients in their wellness journey and provide clinicians with data to improve outcomes. Building objective data around the patient experience by measuring physical signals and responses will allow us to refine and adjust our processes, while providing great opportunities to advance psychedelic therapy research.
KGK Science, a wholly owned Ketamine One subsidiary, has helped hundreds of companies with custom designed clinical trials and claim substantiation strategies over the past 23 years. Equipped with state-of-the-art technologies, novel research techniques, and a seasoned team of industry experts, KGK Science is a leader in premium clinical research. The company has extensive experience in pharmaceuticals, cannabis, natural health products, and more recently psychedelics.
ABOUT KETAMINE ONE
KetamineOne Capital Limited (formerly Myconic Capital Corp.) is a company focused on consolidating medical clinics and becoming a North American leader in mental health treatments. It is working to provide the critical infrastructure needed to develop and deliver breakthrough mental health treatments. Currently, Ketamine One has a network of clinics across North America, with plans to further consolidate the highly fragmented industry. KGK Science Inc. is the Company’s wholly-owned contract research division, which places it at the forefront of premium clinical research based on the subsidiary’s history and extensive experience in pharmaceuticals, cannabis, and the emerging psychedelic medicine industries. As a collective enterprise, Ketamine One is dedicated to helping solve the growing need for safe and accessible mental health therapy.
On behalf of:
KETAMINE ONE
“Adam Deffett“
Adam Deffett, Interim CEO
For further information, please contact:
Nick Kuzyk, Investor Relations
Tel: 1-844-PHONE-K1 (1-844-746-6351)
Email: IR@ketamine.one
Web: www.ketamine.one
Twitter: @KetamineOne
Notice Regarding Forward-Looking Information:
This news release contains forward-looking statements including but not limited to statements regarding the Company’s business, assets or investments, as well other statements that are not historical facts. Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will not occur, which may cause actual performance and results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements. These assumptions, risks and uncertainties include, among other things, the state of the economy in general and capital markets in particular, investor interest in the business and prospects of the Company.
The forward-looking statements contained in this news release are made as of the date of this news release. Except as required by law, the Company disclaims any intention and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities law. Additionally, the Company undertakes no obligation to comment on the expectations of, or statements made, by third parties in respect of the matters discussed above.