Mydecine Releases Scant Financial Information

Mydecine Innovations Group (OTC: MYCOF) released the barest of financial results for the quarter ending June 30, 2023. There is no revenue to report.

The net loss attributable to common stockholders was $3.18 million, from operations, or a basic and diluted loss per share of $(0.13). For the same period in 2022, the loss from operations was $2.45 million, or a basic and diluted loss per share attributable to common stockholders of ($0.35).

Total expenses for the June quarter were $2,650,920 compared to $3,143,805 for the same period in 2022. The company reported that it had $40,458 in cash and cash equivalents as of June 30, 2023. It has a deficit of $147 million.

With regard to the company’s debt, at the end of June 2023, the note payable balance was $85,263. On March 7, 2023, Mydecine defaulted on the note payable, and the defaulted note payable bears an interest of 12% interest per annum. The company said in its filing that it’s in negotiation with the creditor to settle this note payable. All of the financial liabilities of the company are due within 12 months of June 30, 2023, with the exception of the convertible debentures.

C-Suite Changes

In July, the company announced that John Ross, its current Chief Financial Officer, had been appointed as Corporate Secretary. In addition to that change, Todd Heinzl resigned from the board of directors. Heinzl can’t seem to make up his mind as to whether he wants to be on the board or not. He previously resigned from the board on April 3, then was reappointed in an announcement on May 29. Now he’s gone again.

The company has seen quite a few changes in the CFO role. In 2022, Larry Dean Ditto resigned as CFO for personal reasons, effective Aug. 19, and COO Damon Michaels was appointed interim CFO. Ross was named the CFO in September of 2022.

Management compensation for 2023 is listed as $907,219.

Money Trouble

Green Market Report reported in May that Mydecine was left with just over C$10,000 in the bank after losing C$7.65 million in the first three months of 2023, contrasted with C$10.2 million in liabilities the company was carrying and C$2.2 million in assets.

The losses were a substantial increase from Mydecine’s cash burn rate in 2022; the company lost C$5.63 million for the same period a year prior and C$11.56 million for all of last year.

With the SEDAR site down, it is hard to determine any additional information regarding the company’s filings. The documents are not up to date on the OTCMarkets site.

New Age Farm?

In addition to that, in April 2023, a Vancouver resident settled with the B.C. Securities Commission (BCSC) for failing to file insider reports and early warning reports disclosing his stake in the company. Erwin Liem paid the Commission $40,000 and was barred from the investment market for 20 years.

According to a statement, between July 2014 and April 2017, “Liem used the identities ‘Surya Chandra’ and ‘Li Hong Chang’ to obtain and hold securities of Mydecine Innovations Group Inc., now known as New Age Farm, Inc. At the peak of his shareholding, Liem owned over 24.3% of New Age’s shares. He held shares through the Chandra and Chang identities, as well as in his own name and through companies he controlled.”

The statement said that New Age was listed on the NEO Exchange in Canada and traded on the OTC Pink Market in the U.S. However, there doesn’t seem to be any company with that name associated with Mydecine.

Debra Borchardt

Debra Borchardt is the Co-Founder, and Executive Editor of GMR. She has covered the cannabis industry for several years at Forbes, Seeking Alpha and TheStreet. Prior to becoming a financial journalist, Debra was a Vice President at Bear Stearns where she held a Series 7 and Registered Investment Advisor license. Debra has a Master's degree in Business Journalism from New York University.

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