Company to focus on its growing network of clinics and clinical research sites in the U.S.
TORONTO, ON / August 11, 2021 / Novamind Inc. (CSE: NM | OTC: NVMDF | FSE: HN2) (“Novamind” or the “Company”), a leading mental health company specialized in psychedelic medicine, today announced that it has completed the sale of the Company’s investment in the Synthesis Institute, a leader in psychedelic retreats and practitioner training programs located in the Netherlands (“Synthesis”).
Novamind led Synthesis’ seed financing in 2019 with a strategic investment of €750,000 (the “Strategic Investment”). Pursuant to the terms of an agreement between Synthesis and Novamind, Synthesis purchased Novamind’s Strategic Investment for €1,200,000 yielding a 60 per cent return on investment.
“Novamind was a strategic investor in Synthesis at an early stage, helping to influence the company’s direction and expansion,” said Rachel Aidan, Chief Executive Officer of Synthesis. “We remain aligned in our common mission to increase access to safe, regulated psychedelic-assisted healing.”
Novamind realized gross proceeds of approximately CAN$1,760,000 from the sale of its Strategic Investment in Synthesis (“Sale Proceeds”). Including the Sale Proceeds, Novamind’s balance sheet is strengthened with a total of CAN$9,207,945 in cash and short-term investments, and no debt (unaudited figures as at August 10, 2021).
Novamind further announced that it has elected not to proceed with a proposed investment in the Circadia Center, a retreat company operating in Costa Rica. Exiting the Company’s investments in Synthesis and Circadia is a strategic decision that enables Novamind to focus on the expansion of its network of clinics and clinical research sites located in the United States.
“Novamind has experienced rapid growth in its two core businesses,” said Yaron Conforti, Chief Executive Officer and Director. “We’ve established a unique and scalable business model that serves clients at our clinics and drug developers at our research sites. We are now exclusively focused on the continued growth of our clinic and contract research organization businesses, with near-term expansion into other U.S. states and an exciting pipeline of clinical trials.”
Novamind is a leading mental health company enabling safe access to psychedelic medicine through a network of clinics, retreats, and clinical research sites. Novamind provides ketamine-assisted psychotherapy and other novel treatments through its network of Cedar Psychiatry clinics and operates Cedar Clinical Research, a contract research organization specialized in clinical trials and evidence-based research for psychedelic medicine. Both Cedar Psychiatry and Cedar Clinical Research are wholly owned subsidiaries of Novamind. For more information on how Novamind is enhancing mental wellness and guiding people through their entire healing journey, visit novamind.ca.
About the Synthesis Institute
Founded in 2018, Synthesis is a legal, scientist-backed psychedelic wellness, research and education platform outside of Amsterdam. Synthesis is pioneering models for transformative wellness through professional, clinically-inspired psychedelic experiences and training, providing unprecedented access for people seeking alternative therapies, as well as new modes of study for researchers investigating the effects of psychedelics in a professional setting. For more information, or to set up an exploration call, visit www.synthesisinstitute.com and www.synthesisretreat.com.
Yaron Conforti, CEO and Director
Telephone: +1 (647) 953 9512
Samantha DeLenardo, VP, Communications
Bill Mitoulas, Investor Relations
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.