Mydecine Reports First Quarter 2021 Financial Results and Provides Business Update
Mydecine Innovations Group (NEO: MYCO) reported financial results for Q1 2021, showcasing significant growth and operational milestones. The company raised C$20 million and achieved the first-ever international export of psilocybin mushrooms, enhancing its clinical and commercial supply chain. Strategic partnerships with API and LeadGen Labs were established to bolster drug development efforts. Despite a net loss of $5.2 million, Mydecine is well-positioned for future growth with robust funding and an expanding European presence.
- Raised C$20 million through bought deal offerings.
- Achieved first-ever international export of psilocybin mushrooms.
- Entered into exclusive partnership with API for drug development.
- Secured partnership with LeadGen Labs to increase synthesis capacity.
- Filed seven provisional patent applications to strengthen IP portfolio.
- Net loss of $5.2 million for Q1 2021, increased from $0.2 million in Q1 2020.
Strategic Partnerships Expand Drug Development Capabilities to More Efficiently and Rapidly Lead the Next Generation of Psychedelic-Assisted Therapeutics
DENVER, May 18, 2021 (GLOBE NEWSWIRE) -- Mydecine Innovations Group (NEO: MYCO) (OTC: MYCOF) (FSE: 0NFA) (“Mydecine” or the “Company’), an emerging biopharma and life sciences company committed to the research, development, and acceptance of alternative nature-sourced medicine for mainstream use, today reported its financial results for the first quarter ended March 31, 2021 and provided a business update.
“Mydecine accomplished a number of key milestones in the first quarter of 2021 which collectively advanced our mission to bring one of the most robust portfolios of nature-sourced psychedelic-assisted therapeutics to the forefront of the mental health industry,” stated Joshua Bartch, CEO of Mydecine. “Most notably, we achieved the first-ever international export of psilocybin mushrooms and solidified our clinical and commercial supply chain in order to advance our R&D. This supply advantage, combined with our API and LeadGens Lab partnerships, strategically advances our drug development and clinical trials, further positioning Mydecine to lead the next-generation of synthetic and naturally-derived psilocybin novel compounds. We are extremely pleased to have reached this critical point in our development and look forward to building upon these successes in the months ahead.”
Mr. Bartch added, “In addition to the key operational milestones achieved In the first quarter of 2021, we raised C
Business Highlights During and Subsequent to the First Quarter 2021
Enhanced Partner Relationships
- Entered into an exclusive partnership with Applied Pharmaceutical Innovation (API) at the University of Alberta, and further expanded capabilities that enable support of multiple drug development and clinical trial programs simultaneously.
- Partnered with LeadGen Labs, a custom synthesis and contract research organization, to support the Company’s novel psychedelic drug development efforts and considerably increase the number of novel molecules it can synthesize concurrently.
Secured Clinical and Commercial Supply of Psilocybin Mushrooms
- Completed the first-ever international export of psilocybin mushrooms from a private mycology-focused research and cultivation facility in Jamaica.
Further Developed International Operational Footprint
- Michel Rudolphie, former Novartis Norway CEO and former CEO and President of Make-A-Wish International, joined the Company as President of European Operations to develop and lead strategy, business development and comprehensive success across Europe.
- Partnered with Principal Investigator Dr. David Erritzoe at Imperial College London (ICL) to conduct leading research in psychedelics, as well as the creation of novel collaborative pyschopharmacology/psychedelic research clinic between ICL and a major mental health NHS Trust in London.
Strengthened IP Portfolio
- Filed seven provisional patent applications with the United States Patent and Trademark Office (USPTO) in its efforts to discover valuable novel compounds in fungi for medicinal and pharmaceutical use.
- Filed provisional patent for Mindleap’s mental health technology with the USPTO and the Canadian Intellectual Property Office.
Improved Capital Markets Positioning
- Raised C
$20 million through bought deal offerings. - Migrated to the NEO Exchange and commenced trading on March 23, 2021.
- Submitted formal application to list on the NASDAQ Stock Exchange.
Financial Results for the First Quarter 2021
Net Loss: Net loss attributable to common stockholders was
Cash Position: As of March 31, 2021, the Company had cash and cash equivalents of
About Mydecine Innovations Group
Mydecine Innovations Group™ (NEO:MYCO) (OTC:MYCOF) (FSE:0NFA) is an emerging biotech and life sciences company dedicated to developing and commercializing innovative solutions for treating mental health problems and enhancing vitality. The company’s world-renowned medical and scientific advisory board is building out a robust R&D pipeline of nature-sourced psychedelic-assisted therapeutics, novel compounds, therapy protocols, and unique delivery systems. Mydecine has exclusive access to a full cGMP certified pharmaceutical manufacturing facility with the ability to import/export, cultivate, extract/isolate, and analyze active mushroom compounds with full government approval through Health Canada. Mydecine also operates out of a state-of-the-art mycology lab in Denver, CO to focus on genetic research for scaling commercial cultivation of rare (non-psychedelic) medicinal mushrooms.
At the heart of Mydecine’s core philosophy is that psychedelic-assisted psychotherapy will continue to gain acceptance in the medical community with many of the world’s best accredited research organizations demonstrating its remarkable clinical effectiveness. Mydecine recognizes the responsibility associated with psychedelic-assisted therapy and will continue to position itself as a long-term leader across the spectrum of clinical trials, research, technology, and global supply. Mydecine has also successfully completed multiple acquisitions since its inception.
Learn more at: https://www.mydecine.com/ and follow us on Facebook, Twitter, and Instagram.
For more information, please contact:
Media Contacts
Anne Donohoe / Nick Opich
KCSA Strategic Communications
myco@kcsa.com
1-212-896-1265 / 1-212-896-1206
Investor Contacts
Charles Lee, Investor Relations
corp@mydecineinc.com
1-720-277-9879
Allison Soss / Erika Kay
KCSA Strategic Communications
myco@kcsa.com
1-212-896-1267
On behalf of the Board of Directors:
Joshua Bartch, Chief Executive Officer
contact@mydecineinc.com
For further information about Mydecine Innovations Group, Inc., please visit the Company’s profile on SEDAR at www.sedar.com or visit the Company’s website at www.mydecine.com.
This news release contains forward-looking information within the meaning of Canadian securities laws regarding the Company and its business, which relate to future events or future performance and reflect management’s current expectations and assumptions. Often but not always, forward-looking information can be identified by the use of words such as “expect”, “intends”, “anticipated”, “believes” or variations (including negative variations) of such words and phrases, or state that certain actions, events or results “may”, “could”, “would” or “will” be taken, occur or be achieved. Such forward-looking statements reflect management’s current beliefs and are based on assumptions made by and information currently available to the Company. Readers are cautioned that these forward-looking statements are neither promises nor guarantees, and are subject to risks and uncertainties that may cause future results to differ materially from those expected including, without limitation, risks regarding the COVID-19 pandemic, the availability and continuity of financing, the ability of the Company to adequately protect and enforce its intellectual property, the Company's ability to bring its products to commercial production, continued growth of the global adaptive pathway medicine, natural health products and digital health industries, and the risks presented by the highly regulated and competitive market concerning the development, production, sale and use of the Company's products. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. These forward-looking statements are made as of the date hereof and the Company does not assume any obligation to update or revise them to reflect new events or circumstances save as required under applicable securities legislation.
MYDECINE INNOVATIONS GROUP INC. (FORMERLY NEWLEAF BRANDS INC.)
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(EXPRESSED IN CANADIAN DOLLARS)
| As at, | March 31, 2021 $ | December 31, 2020 (audited) $ | ||
| Current assets | ||||
| Cash | 11,324,999 | 2,190,702 | ||
| Rent receivable | 45,351 | 27,746 | ||
| Accounts receivable | 9,593 | - | ||
| Inventory | 36,620 | 47,262 | ||
| Sales tax receivable | 17,711 | 13,734 | ||
| Prepaids and deposits | 3,982,350 | 216,003 | ||
| Total current assets | 15,416,624 | 2,495,447 | ||
| Non-current assets | ||||
| Intangible asset | 155,617 | - | ||
| Investment in joint venture | 617,309 | 620,092 | ||
| Investment in associate | 4,304,874 | 4,481,988 | ||
| Right-of-use asset | 198,036 | 223,645 | ||
| Investment properties | 1,400,855 | 1,418,345 | ||
| Property and equipment | 405,961 | 291,614 | ||
| Total assets | 22,499,276 | 9,531,131 | ||
| Current liabilities | ||||
| Accounts payable and accrued liabilities | 920,817 | 1,187,486 | ||
| Convertible debentures | 464,770 | 2,959,755 | ||
| Derivative liabilities | 1,440,368 | 1,586,744 | ||
| Lease liability – current portion | 71,760 | 69,329 | ||
| Total current liabilities | 2,897,715 | 5,803,314 | ||
| Non-current liabilities | ||||
| Long-term portion of lease liability | 141,007 | 167,118 | ||
| Total liabilities | 3,038,722 | 5,970,432 | ||
| Shareholders’ equity | ||||
| Share capital | 105,408,931 | 85,298,435 | ||
| Contributed surplus | 13,923,899 | 12,734,636 | ||
| Equity portion of convertible debentures | 35,107 | 254,690 | ||
| Accumulated other comprehensive income | (468,601 | ) | (444,803 | ) |
| Deficit | (99,438,782 | ) | (94,282,259 | ) |
| Total shareholders’ equity | 19,460,554 | 3,560,699 | ||
| Total liabilities and shareholders’ equity | 22,499,276 | 9,531,131 | ||
MYDECINE INNOVATIONS GROUP INC. (FORMERLY NEWLEAF BRANDS INC.)
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF LOSS AND COMPREHENSIVE LOSS
(EXPRESSED IN CANADIAN DOLLARS)
| For the three-month period ended, | March 31, 2021 | March 30, 2020 | ||
| Sales | 16,012 | 4,575 | ||
| Cost of goods sold | (10,128 | ) | (2,875 | ) |
| Gross margin | 5,884 | 1,700 | ||
| Expenses | ||||
| Finance cost | 95,737 | 248 | ||
| Corporate development | 1,998,027 | 4,978 | ||
| Amortization | 41,532 | 27,428 | ||
| Consulting fees | 1,023,921 | 4,270 | ||
| Director and management fees | 490,876 | 117,617 | ||
| Foreign exchange loss | 222,375 | (127,964 | ) | |
| Office and miscellaneous | 84,220 | 13,813 | ||
| Share of losses from investment in Joint Venture | 2,783 | - | ||
| Share of losses from investment in Associate | 157,219 | - | ||
| Professional fees | 653,055 | 25,474 | ||
| Regulatory and filing fees | 165,636 | 2,057 | ||
| Research and development | 230,210 | - | ||
| Share-based payments | - | 174,028 | ||
| Total expenses | (5,165,591 | ) | (241,949 | ) |
| Other income (expense) | ||||
| Change in fair value of derivative liabilities | (27,656 | ) | - | |
| Rental income | 33,159 | 47,883 | ||
| Loss on settlement of debt | (2,319 | ) | - | |
| 3,184 | 47,883 | |||
| Net loss for the period | (5,156,523 | ) | (192,366 | ) |
| Foreign currency translation adjustment | (23,798 | ) | - | |
| Net loss and comprehensive loss for the period | (5,180,321 | ) | (192,366 | ) |
| Net loss per share – Basic and diluted | (0.03 | ) | (0.01 | ) |
| Weighted average number of shares outstanding – Basic and diluted | 206,368,298 | 33,438,205 | ||
FAQ
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