- The Company is ceasing operating activities at Numinus
Bioscience – its non-revenue producing research lab, and is
consolidating clinic operations in certain regions to enhance
company performance and improve the overall client experience.
- Collectively, these activities are expected to save nearly
C$1 million of annualized cash
expenses, which will improve company margins and support its path
to profitability.
VANCOUVER, BC, Sept. 18,
2023 /PRNewswire/ - Numinus Wellness
Inc. ("Numinus" or the "Company") (TSX: NUMI) (OTCQX: NUMIF),
a mental health care company advancing innovative treatments and
safe, evidence-based psychedelic-assisted therapies today announced
a focus on positive cash flow generating businesses, with several
actions taken to reduce its cash expenses. These actions include
ceasing operating activities at Numinus Bioscience, its non-revenue
producing research lab, consolidating two wellness clinics into
nearby locations to improve margins and cash flow, and not renewing
leases for two research clinics in Canada.
"I want to personally thank all Numinus Bioscience staff who
made a tremendous contribution not only to Numinus, but to early
and recent developments in our industry," said Payton Nyquvest, Founder and CEO. "Their impact
has been immeasurable; however, our focus on building a
sustainable, cash flow positive business is paramount to our
long-term success and proving the resiliency and growth potential
of our operating model."
All operations at Numinus Bioscience and supporting functions
will be wound down in the coming weeks in an orderly fashion;
however, the company will remain as a legal entity under Numinus
Wellness Inc., ensuring all intellectual property, patents and
regulatory licenses for Numinus will be retained by the
Company. Sharan Sidhu, Vice President, Scientific Research and
Innovation, will remain at Numinus, and will continue to provide
valued guidance on clinical trial and regulatory activities.
Numinus' Peoria wellness clinic
location (in Greater Phoenix),
which was not producing positive cash flow, is being consolidated
into Numinus' nearby Phoenix
clinic location at 2400 West Dunlap Avenue – a strategy through
which Numinus expects to retain all clients and most practitioners,
while reducing cash expenses by improving clinic space utilization.
Numinus has also relocated its clinic in Orem, Utah, to American Fork. Additionally, Numinus will not
renew the leases on its research clinic locations in Montreal and Vancouver, Canada. Ultimately, these changes
are expected to enhance the service levels and client experience
throughout the remaining clinics. Following these changes, Numinus
will operate 11 wellness clinic locations and three clinical
research sites operated by Cedar Clinical Research.
Collectively, these activities are expected to reduce the
Company's annualized cash expenses by C$1
million, with little impact to revenue producing operations.
Numinus believes these actions will meaningfully improve its
margins and help the Company accelerate its path to positive cash
flow and profitability.
About Numinus
Numinus Wellness Inc. (TSX: NUMI) helps people to heal and be
well through the development and delivery of innovative mental
health care and access to safe, evidence-based psychedelic-assisted
therapies. The Numinus model - including psychedelic production,
research and clinic care - is at the forefront of a transformation
aimed at healing rather than managing symptoms for depression,
anxiety, trauma, pain and substance use. At Numinus, we are leading
the integration of psychedelic-assisted therapies into mainstream
clinical practice and building the foundation for a healthier
society.
Learn more at www.numinus.com and follow us
on LinkedIn, Facebook, Twitter,
and Instagram.
Forward-looking statements Statements and other
information contained in this press release about anticipated
future events constitute forward-looking statements.
Forward-looking statements are often, but not always, identified by
the use of words such as "seek", "anticipate", "believe", "plan",
"estimate", "expect" and "intend" and statements that an event
"may", "will", "should", "could" or "might" occur or other similar
expressions. Forward-looking statements are subject to risks and
uncertainties and other factors that could cause actual results to
differ materially from those contained in the forward-looking
statements, including the effect of cost containment measures on
Numinus business and financial position; changes to cash burn rate,
expenses, corporate programs or priorities, or unanticipated costs
affecting cash runway or the pathway to positive cashflow or
profitability, and other risks that are set forth in our annual
information form dated December 12,
2022 and available on SEDAR at www.sedar.com.
Forward-looking statements are based on estimates and opinions of
management at the date the statements are made. Numinus does not
undertake any obligation to update forward-looking statements even
if circumstances or management's estimates or opinions should
change except as required by applicable laws. Investors should not
place undue reliance on forward-looking statements.
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content:https://www.prnewswire.com/news-releases/numinus-takes-actions-to-accelerate-its-path-to-profitability-by-focusing-on-positive-cash-flow-generating-operations-301931176.html
SOURCE Numinus Wellness Inc.
