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Press release content from Globe Newswire. The AP news staff was not involved in its creation.
PRESS RELEASE: Paid content from Globe Newswire
Press release content from Globe Newswire. The AP news staff was not involved in its creation.

Mydecine Reports Second Quarter 2021 Financial Results and Provides Business Update

August 16, 2021 GMT

Groundbreaking Progress in Clinical Trial and Drug Discovery Programs

Enhanced Technology Offering with Mindleap 2.0, its Digital Health Platform to Support the Adoption of Psychedelics into Mental Health and Inner Wellness

DENVER, Aug. 16, 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 second quarter ended June 30, 2021 and provided a business update.

“Mydecine has continued to make groundbreaking progress and novel discoveries in its psilocybin compound research and psychedelic-assisted drug development in the second quarter of 2021. We identified our four novel lead drug candidates in preparation for Pre-Investigational New Drug Application (Pre-IND) meetings with the U.S. Food and Drug Administration (FDA) and Health Canada. As well as discovering over 40 potential pharmacologically active novel compounds in mushrooms, demonstrating the continued success of our integrated research and cultivation facilities as we build today’s most advanced and extensive portfolio of psychedelic-assisted therapeutics,” stated Joshua Bartch, CEO of Mydecine.

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“We have also significantly leveraged our partnerships with research institutions to drive the evolution of the drug discovery process and partnered with the University of Alberta to initiate a next-generation AI-assisted drug discovery program. We are focused on expanding into more technological end-to-end treatments and launched Mindleap 2.0 in July to support the widespread adoption and normalization of psychedelic-based integration with mental health. Our recent milestones exhibit revolutionary potential with layering applications of first and second-generation therapeutics,” concluded Mr. Bartch.

Business Highlights During and Subsequent to the Second Quarter 2021

Groundbreaking Progress in Clinical Trials and Research

  • Identified its four lead novel drug candidates that are unique and patentable in advance of upcoming pre-IND meetings with the FDA and Health Canada to prepare for human clinical trials.

  • Discovered over 40 compounds with pharmacological potential in mushrooms, increasing the ability to discover new compounds and test for efficacy and manufacturing for clinical research.

  • Selected substance use disorder and smoking cessation as the initial target indications for its psychedelic molecule MYCO-004.

Unique Partner Relationships

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  • Established partnership with LeadGen Labs to support its novel psychedelic drug development efforts and target novel molecular entities and enhanced formulations, including effective dosages and safety.

  • Launched its in-silico drug discovery program in conjunction with researchers at the University of Alberta to develop artificial intelligence/machine learning (AI/ML) supported drug screenings, including both the ability to build drugs from the receptor up and assess drugs around the receptors.

Strengthened Licensing Rights and IP Portfolio

  • Received Health Canada approval to expand its cultivation capabilities for psilocybin producing mushrooms at its current good manufacturing practice (cGMP) facility, the Applied Pharmaceutical Innovation in Canada.

  • Filed a new patent for MDMA-like compounds further expanding its drug development program to include the improvement of entactogenic compounds.

Enhanced Technology Platform

  • Launched Mindleap 2.0 version of Mindleap Health’s virtual health platform to provide the infrastructure to support the conscious and trustworthy adoption of psychedelics into the broader categories of mental health and inner wellness.

Financial Results for the Second Quarter 2021

Net Loss: Net loss attributable to common stockholders was $3.8 million for the second quarter 2021, or a basic and diluted loss per share attributable to common stockholders of $0.02, as compared to a net loss attributable to common stockholders of $4.6 million for the second quarter 2020, or a basic and diluted loss per share attributable to common stockholders of $0.05.

Cash Position: As of June 30, 2021, the Company had cash and cash equivalents of $7.0 million.

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  FacebookTwitter, 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. CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION UNAUDITED
(EXPRESSED IN CANADIAN DOLLARS)
                                       

As at,Note June 30,
2021
$
  December 31, 2020
(audited)
$
 
Current assets   
Cash 7,025,810 2,190,702 
Rent and other receivable1691,698 27,746 
Inventory 40,144 47,262 
Sales tax receivable 40,286 13,734 
Prepaids and deposits43,592,249 216,003 
Total current assets 10,790,187 2,495,447 
Non-current assets   
Intangible assets7471,919 - 
Prepaids and deposits41,006,403 - 
Investment in joint venture5526,914 620,092 
Investment in associate64,400,956 4,481,988 
Right-of-use asset11172,664 223,645 
Investment properties91,380,692 1,418,345 
Property and equipment8424,427 291,614 
Total assets 19,174,162 9,531,131 
Current liabilities   
Accounts payable and accrued liabilities161,283,049 1,187,486 
Convertible debentures10486,024 2,959,755 
Derivative liabilities121,190,819 1,586,744 
Lease liability – current portion1174,305 69,329 
Total current liabilities 3,034,197 5,803,314 
Non-current liabilities   
Long-term portion of lease liability11114,293 167,118 
Total liabilities 3,148,490 5,970,432 
Shareholders’ equity   
Share capital13104,312,505 85,298,435 
Contributed surplus1315,385,041 12,734,636 
Equity portion of convertible debentures1035,107 254,690 
Accumulated other comprehensive loss (493,431)(444,803)
Deficit (103,213,550)(94,282,259)
Total shareholders’ equity 16,025,672 3,560,699 
Total liabilities and shareholders’ equity 19,174,162 9,531,131 

MYDECINE INNOVATIONS GROUP INC. CONDENSED INTERIM CONSOLIDATED STATEMENTS OF LOSS AND COMPREHENSIVE LOSS UNAUDITED
(EXPRESSED IN CANADIAN DOLLARS)

   For the three-month period
ended,
  For the six-month period
ended,
 
 NoteJune 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 
      
Sales 5,193 21,658 21,205 26,233 
Cost of goods sold 131 (7,801)(9,997)(10,676)
Gross margin 5,324 13,857 11,208 15,557 
      
Expenses     
Finance cost10, 1127,960 5,425 123,697 6,369 
Corporate development 429,866 769,712 2,427,893 774,690 
Amortization8, 1137,663 (3,566)79,195 23,862 
Consulting fees161,194,102 1,278,116 2,218,023 1,282,386 
Director and management fees16341,632 63,485 832,508 181,102 
Foreign exchange loss (gain) 93,233 (8,817)315,608 (136,781)
Insurance 153,223 - 153,223 - 
Office and miscellaneous 137,255 37,308 221,475 50,425 
Share of losses (income) from investment in Joint Venture5105,318 (7,971)108,101 (7,791)
Share of losses (income) from investment in Associate6(115,467)- 41,752 - 
Professional fees 697,414 74,359 1,350,469 99,833 
Regulatory and filing fees 12,276 12,390 177,912 14,447 
Research and development 713,142 1,383 943,352 1,383 
Salaries 234,331 - 234,331 - 
Share-based payments - (17,954)- 156,074 
Total expenses (4,061,948)(2,203,870)(9,227,539)(2,445,819)
      
Other income (expenses)     
Change in fair value of derivative liabilities12249,549 - 221,893 - 
Consideration paid in excess of net assets acquired from acquisition - (2,386,800)- (2,386,800)
Rental income 32,310 12,379 65,466 60,264 
Gain (loss) on settlement of debt13- 11,425 (2,319)11,425 
Total other income (expenses) 281,859 (2,362,966)285,040 (2,315,111)
      
Net loss for the period (3,774,765)(4,553,009)(8,931,291)(4,745,373)
      
Foreign currency translation adjustment (24,830)(62,700)(48,628)(62,700)
      
Net loss and comprehensive loss for the period (3,799,595)(4,615,709)(8,979,919)(4,808,073)
      
Net loss per share – Basic and diluted (0.02)(0.05)(0.04)(0.07)
Weighted average number of shares outstanding – Basic and diluted 237,240,271 99,275,794 223,116,414 66,357,000