Numinus Wellness Inc. Reports Q1 2022 Results

Ended the quarter with a strong cash position of $53.9 million
Revenues grew 245% year-over-year to $0.8 million for the quarter
Generated gross profit of $50,965 during the quarter, representing a 6.5% gross margin
Well-positioned to offer psychedelic-assisted psychotherapy services through Canada’s newly expanded Special Access Program
Clinical trial application made to Health Canada to begin Phase 1 study for proprietary psilocybe extract
MAPS-sponsored MDMA-Assisted Therapy for PTSD study to begin shortly; approvals received from Health Canada and the Institutional Review Board

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

VANCOUVER, BC, Jan. 20, 2022 – 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 first-quarter results for the three months ended November 30, 2021.

“We have made significant advancements in all areas of our business over the last several months, with many exciting opportunities on the horizon,” said Payton Nyquvest, Founder and CEO. “Of note, the partnership across our lab and clinical teams has been instrumental in passing key milestones on two major clinical trials: one for a proprietary Psilocybe formulation and the other a MAPS-sponsored MDMA study. In addition, we’re continuing to make discoveries in our Bioscience lab and recently begun genetic testing on several newly-acquired psychedelic mushroom species.”

Mr. Nyquvest continued, “The recent amendments by Health Canada to the Special Access Programme further underscore the importance and growth potential of Numinus’s Wellness Inc. (TSXV:NUMI)(OTCPK:LKYSF) wellness clinic network. With facilities purpose-designed for a wide range of psychedelic-assisted psychotherapies, therapists already trained on providing Psilocybin-assisted and MDMA-assisted therapies, and a Health Canada distribution license that allows us to import, possess, produce, and distribute psychedelic compounds – Numinus Wellness Inc. (TSXV:NUMI)(OTCPK:LKYSF) is well positioned as a national leader to provide these important treatments to those who qualify. I’m encouraged by the recent changes by Health Canada and proud of everyone at Numinus Wellness Inc. (TSXV:NUMI)(OTCPK:LKYSF) for the ongoing leadership, drive and commitment to our mission over the past quarter.”

First Quarter Financial Highlights:

Cash balance of $53.9 million as of November 30, 2021
Revenues grew 244.5% year-over-year to $0.8 million in Q1 2021, due primarily to the acquisition of Mindspace. Sequentially, revenues grew 60.9% compared to Q4 2021.
Gross profit of $50,965 in Q1 2022, compared to gross loss of $38,135 in Q1 2021
Gross margin was 6.5%, compared to -16.6% in Q1 2021
Loss was $5.4 million for Q1 2022, compared to a loss of $1.9 million in Q1 2021

Operational Highlights During and Subsequent to Fiscal First Quarter 2022:

Numinus Wellness Inc. (TSXV:NUMI)(OTCPK:LKYSF) Bioscience – Laboratory Operations

Q1 2022 revenue of $141,702, a 56.4% sequential increase from Q4 2021, but a 27.7% decrease from $196,090 in Q1 2021. This year-over-year decline is primarily due to the Company ceasing cannabis-related activities during 2021 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.
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.

Phase 1 clinical trial on NBIO-01:

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 (“NBIO-01”), advancing Numinus’ investigation of its first proprietary psychedelic product, which was developed using patent-pending technology.
On January 14, 2022, the Company submitted its clinical trial application to Health Canada for its Phase 1 trial of NBIO-01. The clinical trial, named HOPE, is a two-phase study that will take place at a Vancouver-based clinic. Upon approval, Numinus Wellness Inc. (TSXV:NUMI)(OTCPK:LKYSF) will begin testing the extract for bioavailability and tolerability on 20 healthy volunteers, followed by testing against a psilocybin comparator on a further 28 healthy volunteers.

MAPS-sponsored MDMA-assisted therapy for PTSD clinical trial study (“MAPPUSX”):

On November 10, 2021, the Company announced it will host the Montreal and Vancouver sites of the MAPPUSX study, which will continue to evaluate the safety of MDMA in treating severe PTSD, titled “A multi-site open-label extension study of MDMA-assisted psychotherapy for PTSD.”
On January 19, 2022, Numinus Wellness Inc. (TSXV:NUMI)(OTCPK:LKYSF) announced that it had received approvals from Health Canada and the Institutional Review Board to proceed with its clinical trial study for MAPPUSX. Enrollment for the trial is expected to begin shortly and will be open to eligible participants who were previously enrolled in the placebo arm of the parent study (“MAPP1”) or who were not able to receive treatment due to COVID-19 restrictions.

Subsequent to the quarter:

Numinus Wellness Inc. (TSXV:NUMI)(OTCPK:LKYSF) Bioscience secured several additional strains of psychedelic mushroom species and has already begun genomic analysis of these spore prints for research purposes.

Numinus Wellness Inc. (TSXV:NUMI)(OTCPK:LKYSF) Health – Numinus Wellness Inc. (TSXV:NUMI)(OTCPK:LKYSF) Wellness Clinic Network

Q1 2022 revenue of $647,915, a 61.9% sequential increase from Q4 2021, and a 1,857.6% increase compared to $33,098 during the same period last year when Numinus Wellness Inc. (TSXV:NUMI)(OTCPK:LKYSF) had only one clinic, which was impacted by COVID-19 during the quarter.
On September 23, 2021, Numinus Wellness Inc. (TSXV:NUMI)(OTCPK:LKYSF) completed the acquisition of the Neurology Centre of Toronto (“NCT”) for less than $1.0 million, allowing for the planned expansion of NCT into a comprehensive neurologic care center specialized in psychedelic neurology.
During Q1 2022, clients received a total of 6,217 appointments through Numinus Wellness Inc. (TSXV:NUMI)(OTCPK:LKYSF) clinics (including one-on-one and group therapy sessions, neurology-related appointments, and Ketamine-assisted psychotherapy), representing a 91.9% increase in clinic appointments compared to the prior quarter (Q4 2021), due in part to the acquisition of NCT. On a same-store basis, excluding NCT, client appointments increased 42.0% compared to the prior quarter.
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.

Subsequent to the quarter:

Numinus Wellness Inc. (TSXV:NUMI)(OTCPK:LKYSF) has finalized a formal Ketamine-Assisted Psychotherapy (“KAP”) training program for therapists, with virtual training sessions occurring over the next two months. This training program will expand the number of Numinus Wellness Inc. (TSXV:NUMI)(OTCPK:LKYSF) therapists qualified to provide KAP sessions to clients.
As of January 20, 2022, Numinus 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

On November 22, 2021, the Company changed its OTC ticker symbol to “NUMIF” (from “LKYSF”) to better align with its Canadian ticker symbol.
Subsequent to the quarter:
On December 16, 2021, Numinus Wellness Inc. (TSXV:NUMI)(OTCPK:LKYSF) graduated to the TSX (from the TSX-Venture), trading under the symbol “NUMI”.

Industry Updates

On January 5, 2022, Health Canada implemented amendments to the Special Access Programme (“SAP”). These amendments now enable:

Q1 2022 Key Performance Metrics:

		*For the quarter ended November 30:*
	2022		2021	% change
Numinus Bioscience¹ revenue		141,702	196,090	-27.7%
Numinus Health²revenue		647,915	33,098	1,857.6%
Total Revenue		$789,617	$229,188	244.5%
Cost of revenue		(738,652)	(267,323)	176.3%
Gross Profit (Loss)		$50,965	$(38,135)	n.m.
Gross profit margin		6.5%	-16.6%	n.m.
General and administrative expenses		(3,736,890)	(1,285,448)	190.7%
Share-based compensation		(400,568)	(174,250)	129.9%
Sales and marketing expenses		(760,519)	(269,243)	182.5%
Depreciation		(51,829)	(91,261)	-43.2%
Research and development expenses		(330,626)	(89,727)	268.5%
Transaction costs		(45,092)	—	100.0%
Loss before other items		$(5,274,559)	$(1,948,064)	170.8%
Other items		(79,530)	19,327	n.m.
Loss and comprehensive loss		$(5,354,089)	$(1,928,737)	177.6%
Loss per share, basic and diluted		$(0.03)	$(0.02)	50.0%
Average number of shares outstanding, basic and diluted		203,409,202	112,364,998	81.0%

¹ Numinus’s Wellness Inc. (TSXV:NUMI)(OTCPK:LKYSF) Bioscience consists of revenues generated through Numinus’s Wellness Inc. (TSXV:NUMI)(OTCPK:LKYSF) Laboratory Operations.

²Numinus Health consists of revenues generated through Numinus’s Wellness Inc. (TSXV:NUMI)(OTCPK:LKYSF) clinic network.

Numinus’s Wellness Inc. (TSXV:NUMI)(OTCPK:LKYSF) condensed consolidated financial statements for the three months ended November 30, 2021 and related management’s discussion and analysis are available on Numinus’s 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-Venture disclosure timeline requirements, as the company was listed on the TSX-Venture at quarter-end.

Conference Call and Webcast Details

Interested parties are invited to participate in the Company’s Q1 2022 results conference call and webcast. On the call Numinus’s Wellness Inc. (TSXV:NUMI)(OTCPK:LKYSF) executives will review the Company’s performance and recent initiatives, and answer questions from analysts.

Date:	Thursday, January 20, 2022
Time:	5:30 p.m. (EST)
Dial-In:	1 (833) 989-2968 (Toll-free North America), 1 (236) 714-4028 (International)
Code:	2670376
Webcast:	https://event.on24.com/wcc/r/3574506/6105A28282486D6F95F7834E9C5632E2

The webcast will also be archived on the Events and Presentations page of Numinus’s 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 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, 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.

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

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