Numinus Wellness Inc. (TSX-V:NUMI, OTC:LKYSF) closed out its fiscal fourth quarter with a strong $59.2 million cash balance and improved revenue following its acquisition of Canadian healthcare start-up Mindspace Wellbeing in February.
For the period ended August 31, 2021, the Vancouver, British Columbia-based mental health care company advancing psychedelic-assisted therapies, saw revenue of $0.5 million, up 81.1% from the same quarter of 2020. Gross profit improved to $31,818, compared to a gross loss of $158,222 in 4Q 2020.
"During the fourth quarter we were focused on building the team, infrastructure, technologies and protocols that will allow us to scale our business over the next several years," founder and CEO Payton Nyquvest said in a statement.
"We welcomed several new key executives, began our laboratory expansion and filed a patent for a proprietary rapid production process for psilocybe."
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For fiscal 2021 as a whole, revenues grew 71.8% year-over-year to $1.5 million, due primarily to the acquisition of Mindspace. It reported a loss of $18.8 million for the year, including a $1.6 million non-cash goodwill impairment charge related to the acquisition of Mindspace, compared to a loss of $9.6 million in fiscal 2020.
During the 4Q, Numinus Bioscience began the 7,500-foot expansion of its psychedelics research facility, including the building of an additional laboratory. An application for federal licensing for the additional lab was submitted in September 2021.
It said the new space, adjacent to its existing laboratory, will be dedicated to the following services:
- Bioassay and in-vitro studies,
- Research & development and formulation studies for several psychedelic compounds, including ketamine and LSD, and,
- Small batch manufacturing.
Subsequent to the end of Q4, the company announced on October 24 that it finalized the study design and protocol for a Phase 1 clinical trial on a naturally derived Psilocybin extract. It said the major milestone advances its investigation of its first proprietary psychedelic product, which was developed using patent-pending technology.
On November 10, the company announced it will host the Montreal and Vancouver sites of the MAPPUSX study, which will continue to study the safety and efficacy of MDMA in treating severe PTSD, titled "A multi-site open-label extension study of MDMA-assisted psychotherapy for PTSD.”
On November 29, it announced that Numinus Bioscience developed proprietary psychedelic drug tests with new toxicity and potency scans. It said the new analytical tests will accelerate Numinus' research and development capabilities and generate new revenue streams through third-party client product testing.
During 4Q, Numinus said 650 individual clients received a total of 2,671 therapy appointments through Numinus Health clinics, including one-on-one and group therapy sessions.
In the following three months, the total number of client appointments at these same clinics grew by 42% to 3,792, including one-on-one and group therapy sessions, and Ketamine-assisted psychotherapy.
On September 23, the company completed the acquisition of the Neurology Centre of Toronto (NCT) for $1 million, allowing for the planned expansion of NCT into a comprehensive neurologic care center specialized in psychedelic neurology.
On November 10, it announced that it had secured two additional clinic locations in Vancouver and Montreal that will primarily be used for clinical research studies in the near term. The locations are already fully compliant with Health Canada regulations and can be seamlessly converted to client-facing wellness clinics in the future, it added.
As of December 9, Numinus has five wellness clinics offering services to clients, including one in Vancouver, one in Toronto, and three in Montreal, that have a total of 21 treatment rooms.
In addition, it has two dedicated research clinics, in Vancouver and Montreal, where psychedelic studies are being conducted.
"Since the quarter ended, we have started to see the benefits of these transformative initiatives, with the expansion of our Ketamine-Assisted Psychotherapy offering, the acquisition of the Neurology Centre of Toronto, the finalization of our Phase 1 clinical trial protocols for our proprietary psilocybe extract, a partnership with MAPS to conduct the Phase 3 extension study of MDMA for PTSD, and the development of new proprietary toxicity and potency testing tools for psilocybin,” Nyquvest concluded.
Contact the author at stephen.gunnion@proactiveinvestors.com