Novamind Divests Non-Core Retreat Investment

Rhea-AI Summary

Novamind Inc. (CSE:NM)(OTC PINK:NVMDF) has completed the sale of its investment in the Synthesis Institute for €1,200,000, realizing a 60% return on investment. This transaction generated approximately CAN$1,760,000 in gross proceeds, enhancing Novamind's cash position to CAN$9,207,945 without any debt. The company has chosen not to invest in the Circadia Center to focus on expanding its clinic network and clinical research in the U.S. Novamind aims to leverage its scalable business model for further growth and upcoming clinical trials.

Positive

• Sale of investment in Synthesis Institute generated approximately CAN$1,760,000.
• Achieved a 60% return on investment from the Synthesis sale.
• Strengthened balance sheet with CAN$9,207,945 in cash and no debt.
• Strategic decision to focus on expanding clinic network and clinical trials in the U.S.

Negative

• None.

TORONTO, ON / ACCESSWIRE / August 11, 2021 / Novamind Inc. (CSE:NM)(OTC PINK: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."

About Novamind

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, visitwww.synthesisinstitute.com and www.synthesisretreat.com.

Contact Information

Novamind
Yaron Conforti, CEO and Director
Telephone: +1 (647) 953 9512

Samantha DeLenardo, VP, Communications
Email: media@novamind.ca

Bill Mitoulas, Investor Relations
Email: bill@novamind.ca

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.

SOURCE: Novamind Inc.

View source version on accesswire.com:
https://www.accesswire.com/659271/Novamind-Divests-Non-Core-Retreat-Investment

FAQ

What was the sale amount of Novamind's investment in the Synthesis Institute?

Novamind sold its investment in the Synthesis Institute for €1,200,000.

What is the return on investment from Novamind's sale of Synthesis?

Novamind achieved a 60% return on its investment from the sale.

How much cash does Novamind have after the sale?

After the sale, Novamind has approximately CAN$9,207,945 in cash and short-term investments.

Why did Novamind exit the Circadia Center investment?

Novamind exited the Circadia Center investment to focus on expanding its clinic network and clinical research sites in the U.S.

What are Novamind's future plans after the sale?

Novamind plans to focus on the expansion of its clinic network and pursue clinical trials in other U.S. states.