Ketamine One (NEO:MEDI.AQN) Capital Ltd, which acquires clinics and other businesses that work across the mental health value chain, has reported its first year of revenue generation since going public.
The Vancouver, British Columbia-based company reported revenue of $1,131,171 for the year to July 31, 2021, compared to nil the previous year, as it transitioned from an investment issuer to a single-purpose company focused on consolidating medical clinics and becoming a North American leader in mental health treatments.
Total assets for the year increased by 346% to $21,921,195 from $4,919,093 in fiscal 2020, mainly attributable to its acquisition of contract research organization KGK Science Inc.
READ: Ketamine One adds Seattle location to its expanding US clinical network
“The 2021 fiscal year was our first as a public issuer and, therefore, was a transformative one as the company went public, rebranded to Ketamine One (NEO:MEDI.AQN), became a single-purpose entity and completed multiple acquisitions,” interim CEO Adam Deffett said in a statement.
“We have accomplished a great deal this year to build a strong foundation as one of the top mental health and digital therapeutic platforms in North America. We are assembling a talented team and a unique platform of synergistic assets to advance innovative treatments and technologies,” he added.
Gross profit for the year was $793,166, from nil in fiscal 2020, while it reported a net loss of $31,914,151 due to non-cash expenses related to share-based payments, the net liabilities acquired from acquisition it made, and goodwill impairment losses.
Highlights subsequent to the end of its financial year include:
- August 4 - Announced an exclusive agreement for the use of virtual reality technology in psychedelic treatments with OVR Tech LLC to provide its INHALE Wellness Platform over an initial term of two years in Ketamine One (NEO:MEDI.AQN)’s clinics.
- August 16 - Announced that KGK Science had secured a significant amount of new business in the form of four newly signed contracts with third-party clinical research and regulatory service clients.
- August 23 - Announced the establishment of a Medical Advisory Board to help guide the development of Ketamine One (NEO:MEDI.AQN)’s mental health platform and other aspects of the Company.
- August 30 - Announced that its wholly-owned subsidiary, Integrated Rehab and Performance Ltd, is expanding its business through the addition of four new, veteran-focused, multidisciplinary clinics in the Comox Valley, Ottawa, Halifax and Surrey.
- September 1 - Announced that it had reached a commercial agreement with Cognetivity Neurosciences Ltd (CSE:CGN, OTCQB:CGNSF)’s Integrated Cognitive Assessment to be deployed in Ketamine One (NEO:MEDI.AQN)’s clinics across North America.
- September 14 - Announced that it had agreed with Psychology & Counselling Services Group to provide psychology, therapy, dietary and other mental health services for subsidiary IRP Health Ltd.
- September 21 - Announced that it had recently signed a non-binding letter of interest with Veteran Services USA to lease approximately 5,000 square feet of space over an initial term of five years in Blue Island, Illinois.
- October 6 - Announced that KGK Science Inc had recently been contracted by a third party to develop the protocol and Informed Consent Form to support its Institutional Review Board application related to a ketamine clinical trial planned to be conducted by a clinic operator within its medical facilities located in Miami, Florida.
- October 14 - Announced that it would be launching a single-arm, open-label study of patients with post-traumatic stress disorder who are undergoing the proprietary physical therapy program at the company’s IRP Health clinics.
- October 20 - Announced that it would be conducting its previously announced single-arm, observational, biometric research studies in association with Biostrap USA, LLC across multiple locations in Canada and the United States.
- November 4 - Announced that it had entered into a telehealth and virtual health partnership to increase accessibility and service offerings to its patients.
- November 9 - Announced that it intended to confidentially submit a draft registration statement on Form S-1 to the US Securities and Exchange Commission relating to a potential initial public offering of its common shares in the US in the first half of 2022.
- November 16 - Announced that IRP Health opened its Comox Valley and Ottawa clinics. The two clinics are veteran-focused facilities and multidisciplinary in nature.
- December 2 - Announced that KGK Science successfully assisted its client, Hofseth Biocare ASA to receive New Dietary Ingredient status from the US Food and Drug Administration (FDA) for its patented CalGo and OmeGo branded products.
- December 2 - Announced that it entered into a collaborative partnership with Cognetivity Neurosciences Ltd (CSE:CGN, OTCQB:CGNSF) to study and develop assessments for depression and post-traumatic stress disorder.
- December 8 - Announced that it had been engaged by Dr. Tami Meraglia to establish a ketamine infusion clinic in Seattle, Washington.
“I believe we have shown the great potential of combining our clinics with an established contract research organization and using those assets to advance digital therapeutics,” Deffett continued.
“KGK Science continues to secure new business, the portfolio of clinics keeps evolving, and our corporate development efforts have resulted in new partnerships and a growing list of opportunities across North America," added Deffett.
Ketamine One also revealed that its chief medical officer, Dr. Mark Kimmins, has left the company after filling the position since June 2021.
In addition, the company and NY Ketamine Medical Practice have mutually agreed to terminate the letter of intent under which it was working to acquire NY Ketamine. The company said it 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.
Ketamine One concluded that it expects to expand its partnerships and to help validate products through clinical testing and the growth of the market for emerging treatments and therapeutics. It said it is also planning to expand the programs being offered in-clinic and advance its veteran health initiatives.
Contact the author at stephen.gunnion@proactiveinvestors.com