Ketamine One (NEO:MEDI.AQN) Capital Ltd, which acquires clinics and other businesses that work across the mental health value chain, has reported positive first-quarter revenue following its transition from an investment issuer to a single-purpose company focused on consolidating medical clinics and becoming a North American leader in mental health treatments.
The Vancouver, British Columbia-based company reported revenue of $1,989,752 for the three months to October 31, 2021, compared to nil in 1Q 2021. It generated a gross profit of $594,411, noting that its 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.
“We are pleased with Ketamine One (NEO:MEDI.AQN)’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,” interim CEO Adam Deffett said in a statement.
“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," added Deffett.
READ: KetamineOne Capital appoints Joe Ramelli as its chief financial officer
The company’s 1Q net loss was $9,225,769, compared to a net loss of $605,810 reported for 1Q 2021, primarily due to share-based payments of $6,156,242, service fees of $941,567, and general and administrative expenses of $691,760, the company said.
Total assets for the quarter decreased by 13% to $19,079,056 from $21,921,195 for the period ended July 31, 2021, mainly due to a fall in cash and cash equivalents.
Highlights subsequent to the end of the quarter include:
- 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 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.
- December 13 - Announced that it and NY Ketamine Medical Practice have mutually agreed to terminate the letter of intent under which it was working to acquire NY Ketamine.
- December 13 - Revealed that its chief medical officer, Dr. Mark Kimmins, has left the company after filling the position since June 2021.
- December 14 - Announced that Joe Ramelli was appointed as its new chief financial officer (CFO) with immediate effect subject to the final acceptance of the NEO Exchange. Former CFO, Peter Nguyen, amicably agreed to depart the company and also resigned from the board of directors effective December 13, 2021.
“Ketamine One continues to execute on its plan to become a leader in mental health across North America,” Deffett concluded.
“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.”
Contact the author at stephen.gunnion@proactiveinvestors.com