Psychedelic medicine company Novamind Inc. (OTC:NVMDF) reported its fiscal second-quarter results for the three months ended December 31, 2020. Novamind reported revenue of $1,288,828 primarily composed of patient services revenue from its network of four Cedar Psychiatry outpatient mental health clinics in Utah. The company said it was a 47% increase over the first fiscal quarter ending September 30th, 2020.
Novamind reported a net loss of $3,567,883 for the second quarter versus a net loss of $493,614 for the first quarter. The company said the net loss was primarily due to expenses related to the company’s listing on the CSE, and funding of capacity expansion at its Cedar Psychiatry clinics. This included consulting expenses of $416,268, professional fees of $450,419, salaries and wages of $791,078, office and general expenses of $87,368, advertising and promotion expenses of $236,650, and stock-based compensation of $664,814. Additionally, there were $1,379,144 in RTO transaction costs in the quarter.
Novamind began trading on the CSE under the stock symbol “NM” on January 5. The company has been included in the underlying index of the Horizons Psychedelic Stock Index ETF (NEO: PSYK) through a “Fast Entry” category, increasing its profile with retail and institutional investors in the psychedelic medicine sector.
Following the end of the quarter, Novamind announced that it had reached two significant milestones at its Cedar Psychiatry mental health clinics: administering over 5,000 ketamine treatments since its opening in 2016, and administering over 2,000 Spravato treatments since the product became available in 2019. The company said that these milestones position Novamind as one of North America’s top providers of ketamine-assisted psychotherapy and Spravato.
On February 11th, 2021, Novamind said that it had made a strategic investment of AU$827,486 (approximately CAN$810,000), in Bionomics Limited (OTCQB: BNOEF), a biopharmaceutical company dedicated to developing better treatments for central nervous system disorders. In addition, Cedar Clinical Research, a wholly-owned subsidiary of Novamind, will be evaluated by Bionomics as a clinical research site to conduct Bionomics’ phase IIb clinical trial examining BNC210, a drug that has received Fast Track Designation from the U.S. Food and Drug Administration for the treatment of post-traumatic stress disorder (PTSD).