(Image via Numinus Wellness Inc.)
March 2021 had been a busy month for Vancouver-based Numinus Wellness Inc. (TSX-V: NUMI, OTC: LKYSF, Forum) as it boosts its business around psychedelic product research and development, and as an ancillary for psychedelic therapy clinical trials. Health Canada licences, scientific expertise, and state-of-the-art technologies facilitate ongoing innovation, while revenue from high-throughput contract cannabis testing is reinvested to further its psychedelic initiatives.
As the first public entity to legally cultivate and extract Psilocybe mushrooms under its dealers’ license, Numinus Bioscience is already a research leader in the psychedelics industry. Its BC lab is licensed by Health Canada.
The month began with the Company announcing it had made new amendments under Canada’s Controlled Drugs and Substances Act that enhance its ability to lead psychedelics research and support the global psychedelics sector. These amendments to its federal licence allow for the possession, production, assembly, sale, export and/or delivery of a variety of psychedelics including Ketamine, LSD, Mescaline, N,N-Dimethyltryptamine (DMT), N-Methyl-3,4, methylenedioxyamphetamine (MDMA), Psilocin and Psilocybin.
The Company’s CEO, Founder, and Chairman, Payton Nyquvest explained that these approvals mark a key milestone in advancing the integrated services model the Company is building to research and ultimately deliver quality therapies to people who may benefit, across the spectrum of mental health disorders.
“We know that currently available treatments for mental health disorders are often ineffective and can lead to major unwanted side effects. To date, clinical trials for professionally supervised psychedelic-assisted psychotherapies have shown safety and efficacy, with fewer and less severe side effects than conventional medicines.”
NUMI followed this up with an outline for its plans to significantly expand its own psychedelics research laboratory by late 2021. A 7,500 square-foot expansion will be developed and housed in an existing Numinus-leased building adjacent to the current lab.
The Company’s Science Officer and General Manager, Sharan Sidhu noted that this investment in an expanded lab marks a key landmark for Numinus and provides the necessary foundation for therapeutics development and research infrastructure to advance psychedelic-assisted psychotherapy in Canada and around the world.
“When complete, the facility will enhance our IP and partnerships strategy, generate more revenue through analytics testing for psychedelics and other contract services, and increase our supply of consistent, safe and effective psychedelics for clinical use and trials undertaken by academic, not-for-profit and for-profit entities.”
On the financial front, Numinus announced that it had closed an oversubscribed bought deal financing of 28 million units at a price of $1.25 per Unit for total gross proceeds of $35 million.
The Offering was conducted by Eight Capital and Canaccord Genuity Corp., who also exercised their over-allotment option in full to purchase an additional 4.2 million units for additional gross proceeds of $5.25 million. Including the proceeds from the exercise of the over-allotment option, the total gross proceeds of the Offering are $40.25 million with an aggregate of 32.2 million Units issued.
Numinus’ leadership team intends to use the net proceeds to acquire and build local community clinics and flagship facilities offering a wide variety of amenities including psychotherapy, health and wellness services and, when regulated, psychedelic-assisted psychotherapy.
CEO Nyquvest added that it was thanks in large part to overwhelming investor confidence in the Company’s vision of bringing forward safe and evidence-based approaches to mental health challenges, including through the delivery of psychedelic-assisted psychotherapies.
“Millions of people struggle with depression, anxiety, trauma, pain and substance use, and are seeking novel approaches that are intended to cure rather than manage symptoms. Our financing puts us in a strong position to drive much needed innovation in mental healthcare and provides the necessary resources to create new ways to support healing and wellness.”
With over $65 million now on hand following the close of this offering, the company is well capitalized to act on revenue-generating growth initiatives including its Bioscience lab expansion, clinic acquisitions and purpose-built flagship facilities.
(Numinus Wellness Inc. stock chart, Sept 2020 to March 2021. Click to enlarge.)
Numinus Wellness Inc. already has a lot to offer investors with health services centered around developing and supporting the safe, evidence-based, accessible use of psychedelic-assisted psychotherapies. Given its reasonable market value, position to capitalize on the psychedelic boom and range of other useful assets, this Company is one to watch as it continues down the clinical path to success.
To find out more about the Company, visit numinus.ca.
FULL DISCLOSURE: This is a paid article produced by Stockhouse Publishing.