Dec 10, 2021 Numinus Wellness inc.

Numinus Wellness Inc. Reports Q4 and Year End 2021 Results

 
  • Ended the year with a strong cash position of $59.2 million
  • Revenues grew 81% year-over-year to $0.5 million for Q4 2021
  • Revenues grew 72% year-over-year to $1.5 million for FY 2021
  • Gross profit of $31,818 for Q4 2021
  • Completed the acquisition of the Neurology Centre of Toronto in September 2021
  • Two clinical trials about to launch: Phase 1 study for proprietary psilocybe extract and Phase 3 open-label extension study partnership with MAPS for MDMA for PTSD
  • Recently received conditional approval to graduate to the TSX (from the TSX Venture)

All financial results are reported in Canadian dollars unless otherwise stated.

VANCOUVER, BC, Dec. 9, 2021 – Numinus Wellness Inc. (TSXV:NUMI)(OTCPK:LKYSF)(“Numinus” or the “Company”), a mental health care company advancing innovative treatments and safe, evidence-based psychedelic-assisted therapies, today announced its fiscal fourth quarter and full-year results for the periods ended August 31, 2021.

Numinus Wellness Inc. logo (CNW Group/Numinus Wellness Inc.)
 
Numinus Wellness Inc. (TSXV:NUMI)(OTCPK:LKYSF) logo

“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,” said Payton Nyquvest, Founder and CEO. “We welcomed several new key executives, began our laboratory expansion and filed a patent for a proprietary rapid production process for psilocybe.”

Mr. Nyquvest continued: “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.”

Fourth Quarter Financial Highlights:

  • Cash balance of $59.2 million as of August 31, 2021
  • Revenues grew 81.1% year-over-year to $0.5 million in Q4 2021, due primarily to the acquisition of Mindspace.
  • Gross profit of $31,818 in Q4 2021, compared to a gross loss of $158,222 in Q4 2020
  • The loss was $7.8 million for Q4 2021, which included a $1.6 million non-cash goodwill impairment charge related to the acquisition of Mindspace1.
 
1 The impairment is primarily related to the exclusion of future revenues derived from psychedelic-assisted psychotherapies as these services are currently unregulated. As a result of IFRS standards, the Company must recognize there is the uncertainty of the realization of such revenues, and the impact on expected revenue growth and profitability to related services, relative to management’s forecasts.

Fiscal 2021 Financial Highlights:

  • Revenues grew 71.8 % year-over-year to $1.5 million in fiscal 2021, due primarily to the acquisition of Mindspace.
  • Gross loss of $81,538, compared to gross profit of $88,047 in fiscal 2020
  • The loss was $18.8 million for fiscal 2021, which included a $1.6 million non-cash goodwill impairment charge related to the acquisition of Mindspace¹, compared to a loss of $9.6 million in fiscal 2020.

Operational Highlights During and Subsequent to Fourth Quarter 2021:

Numinus Bioscience – Research and Laboratory

  • Q4 2021 revenue of $90,593, a decrease of 66.7% from Q4 2020. This is primarily due to the Company ceasing cannabis-related activities during the year to dedicate resources towards advancing psychedelic-centered service offerings – including psychedelic analytical testing and contract laboratory services, to align with the Company’s strategy and overall objectives.
  • In June 2021, the Company filed a provisional patent application with the United States Patent and Trademark Office for a proprietary rapid production process for psilocybe and other psychoactive fungi species. This process dramatically increases the production of therapeutics for use in psychedelic-assisted psychotherapy and leads to standardized psychedelic extracts that are reproducible, scalable, cost-effective, and commercially viable.
  • In July 2021, Numinus Wellness Inc. (TSXV:NUMI)(OTCPK:LKYSF) received Health Canada approval for the MAPS-sponsored, single-arm, open-label safety and feasibility study evaluating MDMA-assisted therapy for PTSD.
  • During the quarter, Numinus Wellness Inc. (TSXV:NUMI)(OTCPK:LKYSF) began the 7,500 ft. 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. The new space (adjacent to Numinus Wellness Inc. (TSXV:NUMI)(OTCPK:LKYSF) existing laboratory) will be dedicated to the following services:

Subsequent to Q4 2021:

  • On October 24, 2021, Numinus Wellness Inc. (TSXV:NUMI)(OTCPK:LKYSF) announced it finalized the study design and protocol for a Phase 1 clinical trial on a naturally derived Psilocybin extract. This major milestone advances Numinus’s Wellness Inc. (TSXV:NUMI)(OTCPK:LKYSF) investigation of its first proprietary psychedelic product, which was developed using patent-pending technology.
  • On November 10, 2021, 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, 2021, the Company announced that Numinus’s Wellness Inc. (TSXV:NUMI)(OTCPK:LKYSF) Bioscience developed proprietary psychedelic drug tests with new toxicity and potency scans. These new analytical tests will accelerate Numinus’s Wellness Inc. (TSXV:NUMI)(OTCPK:LKYSF) research and development capabilities and generate new revenue streams through third-party client product testing.

Numinus’s Wellness Inc. (TSXV:NUMI)(OTCPK:LKYSF) Health and Mindspace – Wellness Clinics

  • Q4 2021 revenue of $400,306, a 100% increase compared to nil during the same period last year when Numinus’s Wellness Inc. (TSXV:NUMI)(OTCPK:LKYSF) only clinic at the time was closed due to COVID-19.
  • As at August 31, 2021, Numinus’s Wellness Inc. (TSXV:NUMI)(OTCPK:LKYSF) Health had four wellness clinics across Canada (one in Vancouver and three in Montreal) that had a total of 16 treatment rooms.
  • During Q4 2021, 650 individual clients received a total of 2,671 therapy appointments through Numinus’s Wellness Inc. (TSXV:NUMI)(OTCPK:LKYSF) Health clinics (including one-on-one and group therapy sessions). In the three months following (during fiscal Q1 2022) 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).

Subsequent to Q4 2021:

  • On September 23, 2021, Numinus’s Wellness Inc. (TSXV:NUMI)(OTCPK:LKYSF) completed the acquisition of the Neurology Centre of Toronto (“NCT”) for $1.0 million, allowing for the planned expansion of NCT into a comprehensive neurologic care center specialized in psychedelic neurology.
  • On November 10, 2021, the Company 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.
  • As of December 9, 2021, Numinus’s Wellness Inc. (TSXV:NUMI)(OTCPK:LKYSF) has five wellness clinics offering services to clients (one in Vancouver, one in Toronto, and three in Montreal) that have a total of 21 treatment rooms. In addition, the company has two dedicated research clinics where psychedelic studies are being conducted (one in Vancouver and one in Montreal).

Corporate Updates

  • During Q4 2021, Numinus’s Wellness Inc. (TSXV:NUMI)(OTCPK:LKYSF) expanded its management team with new executive appointments in Marketing, Clinic Operations, Human Resources, and Investor Relations.

Subsequent to Q4 2021:

  • On November 22, 2021, the Company changed its OTC ticker symbol to “NUMIF” (from “LKYSF”) to better align with its Canadian ticker symbol.
  • On November 25, 2021, Numinus’s Wellness Inc. (TSXV:NUMI)(OTCPK:LKYSF) received conditional approval to graduate to the TSX (from the TSXV), with the first day of trading scheduled for approximately December 16, 2021.
Key Performance Metrics:            
    For the quarter ended
August 31,		   For the year ended
August 31,
  2021 2020   2021 2020
Numinus Bioscience¹ revenue 90,593 272,023   479,502 791,504
Numinus Health revenue   11,852 (993)²   63,008 89,674
Mindspace revenue 388,454 –   971,160 –
Total revenue $490,899 $271,030   $1,513,670 $881,178
Cost of revenue (459,081) (429,252)   (1,595,208) (793,131)
Gross profit (loss) $31,818 ($158,222)   ($81,538) 88,047
Total expenses ($7,643,606) ($3,041,299)   ($18,503,774) ($7,365,258)
Loss before other items ($7,611,788) ($3,199,521)   ($18,585,312) ($7,277,211)
Other items (171,124) (101,047)   (188,633) (2,331,237)
Loss before income tax ($7,782,912) ($3,300,568)   ($18,773,945) ($9,608,448)
Income tax recovery/ (expense) – 7,937   – 7,884
Loss and comprehensive loss ($7,782,912) ($3,292,631)   ($18,773,945) ($9,600,564)
Basic & diluted loss per share ($0.04) ($0.03)   ($0.11) ($0.15)
1 Numinus’s Wellness Inc. (TSXV:NUMI)(OTCPK:LKYSF) Bioscience consists of revenues generated through Numinus’s Wellness Inc. (TSXV:NUMI)(OTCPK:LKYSF) laboratory and research activities.
2 During Q4 2020, Numinus’s Wellness Inc. (TSXV:NUMI)(OTCPK:LKYSF) only wellness clinic (at that time) was closed due to COVID-19. Negative revenue was recorded as a result of adjustments made during the quarter.

Numinus’s Wellness Inc. (TSXV:NUMI)(OTCPK:LKYSF) condensed consolidated annual financial statements for the period ended August 31, 2021 and related management’s discussion and analysis are available on Numinus Wellness Inc. (TSXV:NUMI)(OTCPK:LKYSF) Investor Relations website at www.investors.numinus.com and under the Company’s profile on SEDAR at www.sedar.com. These documents were prepared in accordance with IFRS and with TSX-V disclosure timeline requirements.

Conference Call and Webcast Details

Interested parties are invited to participate in the Company’s Q4 and 2021 results conference call and webcast. On the call Numinus Wellness Inc. (TSXV:NUMI)(OTCPK:LKYSF) executives will review the Company’s performance and recent initiatives, and answer questions from analysts.

Date: Thursday, December 9, 2021
Time: 5:30 p.m. (EST)
Dial-In: 1 (833) 989-2968 (Toll-free North America), 1 (236) 714-4028 (International)
Code: 5255006
Webcast: https://event.on24.com/wcc/r/3506991/5B53106F5B6F898C2A8E46D1C03BF708

The webcast will also be archived on the Events and Presentations page of Numinus Wellness Inc. (TSXV:NUMI)(OTCPK:LKYSF) Investor Relations website: https://www.investors.numinus.com/events-and-presentations

About Numinus

Numinus Wellness Inc. (TSXV:NUMI)(OTCPK:LKYSF) helps people to heal and be well through the development and delivery of innovative mental health care and access to safe, evidence-based psychedelic-assisted therapies. The Numinus Wellness Inc. (TSXV:NUMI)(OTCPK:LKYSF) model – including psychedelic production, research, and clinic care – is at the forefront of a transformation aimed at healing rather than managing symptoms for depression, anxiety, trauma, pain, and substance use. At Numinus Wellness Inc. (TSXV:NUMI)(OTCPK:LKYSF), we are leading the integration of psychedelic-assisted therapies into mainstream clinical practice and building the foundation for a healthier society.

Learn more at www.numinus.com and follow us on LinkedIn, Facebook, Twitter, and Instagram.

Forward-looking statements

This press release contains forward-looking statements within the meaning of applicable securities laws. All statements that are not historical facts, including without limitation, statements regarding future estimates, plans, programs, forecasts, projections, objectives, assumptions, expectations, or beliefs regarding future performance are “forward-looking statements”. Forward-looking statements can be identified by the use of words such as “expects”, “does not expect”, “is expected”, “believes”, “intends”, “anticipates”, “does not anticipate”, “believes” or variations of these words, expressions or statements, that certain actions, events or results “may”, “could”, “would”, “might” or “will be” taken, will occur or will be realized. Such forward-looking statements involve risks, uncertainties, and other known and unknown factors that could cause actual results, events, or developments to differ materially from the results, events, or developments expected and expressed or implied in such forward-looking statements. These risks and uncertainties include, but are not limited to, dependence on obtaining and maintaining regulatory approvals, including the acquisition and renewal of federal, provincial, municipal, local or other licenses, and any inability to obtain all necessary government authorizations, licenses and permits to operate and expand the Company’s facilities; regulatory or policy changes such as changes in applicable laws and regulations, including federal and provincial legalization, due to fluctuations in public opinion, industry perception of integrative mental health, including the use of psychedelic-assisted therapy, delays or inefficiencies or any other reason; any other factor or development likely to hamper the growth of the market; the Company’s limited operating and profitability track record; dependence on management; the Company’s need for additional financing and the effects of financial market conditions and other factors on the availability of capital; competition, including that of more established and better-funded competitors; the continued impact of the COVID-19 pandemic; and the need to build and maintain alliances and partnerships, including with research and development companies, customers and suppliers. These factors should be carefully considered, and readers are cautioned not to place undue reliance on forward-looking statements. Despite the Company’s efforts to identify the main risk factors that could cause actual measures, events, or results to differ materially from those described in forward-looking statements, other risk factors may cause measures, events, or developments to materially differ from those anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in forward-looking statements. The Company does not undertake to revise forward-looking statements, even if new information becomes available as a result of future events, new facts or any other reason, except as required by applicable laws.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

SOURCE Numinus Wellness Inc. (TSXV:NUMI)(OTCPK:LKYSF)

[BONUS-POPUP id=”1″]

Please See Disclaimer

 


STOCKS YOU MAY LIKE


Disclosure:

1) The author of the Article, or members of the author’s immediate household or family, do not own any securities of the companies set forth in this Article. The author determined which companies would be included in this article based on research and understanding of the sector.

2)The Article was issued on behalf of and sponsored by, Numinus Wellness Inc. Market Jar Media Inc. has or expects to receive from Numinus Wellness Inc.’s Digital Marketing Agency of Record (Native Ads Inc.) ninety-two thousand, nine hundred and fifty-six American dollars for 65 days (45 business days).

3) Statements and opinions expressed are the opinions of the author and not Market Jar Media Inc., its directors or officers. The author is wholly responsible for the validity of the statements. The author was not paid by Market Jar Media Inc. for this Article. Market Jar Media Inc. was not paid by the author to publish or syndicate this Article. Market Jar has not independently verified or otherwise investigated all such information. None of Market Jar or any of their respective affiliates, guarantee the accuracy or completeness of any such information. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. Market Jar Media Inc. requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Market Jar Media Inc. relies upon the authors to accurately provide this information and Market Jar Media Inc. has no means of verifying its accuracy.

4) The Article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of the information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Market Jar Media Inc.'s terms of use and full legal disclaimer as set forth here. This Article is not a solicitation for investment. Market Jar Media Inc. does not render general or specific investment advice and the information on Microsmallcap.com should not be considered a recommendation to buy or sell any security. Market Jar Media Inc. does not endorse or recommend the business, products, services or securities of any company mentioned on Microsmallcap.com.

5) Market Jar Media Inc. and its respective directors, officers and employees hold no shares for any company mentioned in the Article.

6) This document contains forward-looking information and forward-looking statements, within the meaning of applicable Canadian securities legislation, (collectively, “forward-looking statements”), which reflect management's expectations regarding Numinus Wellness Inc.’s future growth, future business plans and opportunities, expected activities, and other statements about future events, results or performance. Wherever possible, words such as “predicts”, “projects”, “targets”, “plans”, “expects”, “does not expect”, “budget”, “scheduled”, “estimates”, “forecasts”, “anticipate” or “does not anticipate”, “believe”, “intend” and similar expressions or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative or grammatical variation thereof or other variations thereof, or comparable terminology have been used to identify forward-looking statements. These forward-looking statements include, among other things, statements relating to: (a) revenue generating potential with respect to Numinus Wellness Inc.’s industry; (b) market opportunity; (c) Numinus Wellness Inc.’s business plans and strategies; (d) services that Numinus Wellness Inc. intends to offer; (e) Numinus Wellness Inc.’s milestone projections and targets; (f) Numinus Wellness Inc.’s expectations regarding receipt of approval for regulatory applications; (g) Numinus Wellness Inc.’s intentions to expand into other jurisdictions including the timeline expectations relating to those expansion plans; and (h) Numinus Wellness Inc.’s expectations with regarding its ability to deliver shareholder value. Forward-looking statements are not a guarantee of future performance and are based upon a number of estimates and assumptions of management in light of management’s experience and perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances, as of the date of this document including, without limitation, assumptions about: (a) the ability to raise any necessary additional capital on reasonable terms to execute Numinus Wellness Inc.’s business plan; (b) that general business and economic conditions will not change in a material adverse manner; (c) Numinus Wellness Inc.’s ability to procure equipment and operating supplies in sufficient quantities and on a timely basis; (d) Numinus Wellness Inc.’s ability to enter into contractual arrangements with additional Pharmacies; (e) the accuracy of budgeted costs and expenditures; (f) Numinus Wellness Inc.’s ability to attract and retain skilled personnel; (g) political and regulatory stability; (h) the receipt of governmental, regulatory and third-party approvals, licenses and permits on favorable terms; (i) changes in applicable legislation; (j) stability in financial and capital markets; and (k) expectations regarding the level of disruption to as a result of COVID-19. Such forward-looking information involves a variety of known and unknown risks, uncertainties and other factors which may cause the actual plans, intentions, activities, results, performance or achievements of Numinus Wellness Inc. to be materially different from any future plans, intentions, activities, results, performance or achievements expressed or implied by such forward-looking statements. Such risks include, without limitation: (a) Numinus Wellness Inc.’s operations could be adversely affected by possible future government legislation, policies and controls or by changes in applicable laws and regulations; (b) public health crises may adversely impact Numinus Wellness Inc.’s business; (c) the volatility of global capital markets; (d) political instability and changes to the regulations governing Numinus Wellness Inc.’s business operations (e) Numinus Wellness Inc. may be unable to implement its growth strategy; and (f) increased competition.

Except as required by law, Numinus Wellness Inc. undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future event or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events. Neither does Numinus Wellness Inc. nor any of its representatives make any representation or warranty, express or implied, as to the accuracy, sufficiency or completeness of the information in this document. Neither Numinus Wellness Inc. nor any of its representatives shall have any liability whatsoever, under contract, tort, trust or otherwise, to you or any person resulting from the use of the information in this document by you or any of your representatives or for omissions from the information in this document.

7) Any graphs, tables or other information demonstrating the historical performance or current or historical attributes of Numinus Wellness Inc. or any other entity contained in this document are intended only to illustrate historical performance or current or historical attributes of Numinus Wellness Inc. or such entities and are not necessarily indicative of future performance of Numinus Wellness Inc. or such entities.