Mydecine Innovations Group Inc. (NEO: MYCO) (OTC: MYCOF) announced on Thursday that it has signed an LOI to sell its digital technology subsidiary, Mindleap Health Inc. to PanGenomic Health Inc. The deal is valued at C$4 million.
“We are extremely pleased with what we have accomplished with Mindleap Health,” said Josh Bartch, CEO, and Chairman of Mydecine. “We have spent significant time and resources over the past two years developing a truly world-class mental health platform that is original, built from the ground up, intuitive, and scalable, all while addressing some of the world’s most pressing mental health issues.”
PanGenomic Health Inc. (CSE:NARA) is a precision health company that has developed a self-care digital platform to deliver personalized, evidence-based information about natural treatments. It is registered as a British Columbia benefit company and provides a technology platform that identifies plant-based solutions tailored to the health profile of each individual.
“People are assuming more control over their personal health decisions, and are interested in evidence-based information about novel treatments for mental health conditions,” said Robert Nygren, Executive Chair of PanGenomic Health. “We believe that the team at Mindleap Health has developed an extremely user-friendly and professional app that connects consumers with trusted information about the emerging field of psychedelic-assisted therapy and qualified health practitioners.”
According to the company statement, Mydecine will sell all of its Mindleap outstanding shares to Pangenomic for C$4 million by issuing units priced at C$0.20 per Unit. Each Unit comprises one Class A Common Share of PanGenomic and one share purchase warrant to purchase one additional Share for C$0.30 per Unit Warrant Share, or such larger amount as the CSE may require, for 24 months from the closure of the purchase and sale of Mindleap Shares. In addition to the sale, PanGenomic will hire Mydecine to assist in the transition, transfer, and integration of Mindleap technologies into PanGenomic’s technology platform for two months following the closing. PanGenomic will pay Mydecine a monthly consulting fee of $50,000 (C$100,000 total), payable at the closing and on the one-month anniversary of the closing date.
Mydecine has been going through several changes over the last few weeks. The company saw three of its board members resign and Bartch, Todd Heinzl, and Robert Roscow have been appointed on an interim basis as members of the company’s Audit Committee. The company said in a statement that it is searching for replacement board members.
The company also announced in August that Larry Dean Ditto has resigned as Chief Financial Officer of the company, for personal reasons. Ditto’s resignation was effective as of August 19, 2022. The company appointed Damon Michaels, its chief operating officer, to serve as an interim chief financial officer.
The company saw its cash dwindle to roughly $300,000, but has made efforts to improve that problem. Earlier this week, the company announced that it had entered into a Common Share Subscription Agreement with a third-party investor. The Subscription Agreement will allow the company to issue and sell up to $10 million of ordinary shares from the treasury to the investor, from time to time, in a series of closings at the company’s discretion.
“Mydecine’s team has spent the last six months examining every part of the business to substantially reduce the burn rate, increase efficiencies, narrow focus, and establish a viable, well-run biotech company,” said Bartch. “We’ve made some difficult and strategic decisions over this process that haven’t been easy, but I believe we have set the company up to be sustainable in the short, medium, and long term. We thank our investors, partners, and loyal shareholders for believing in our vision and supporting our goals. With a lower go-forward burn rate, we expect this capital to sustain the organization over a much longer period and provide the funds needed to execute all goals and objectives fully.”