Earlier this week we reported that several of Mydecine’s key board members had resigned. It was the latest in a worrying string of news from Mydecine, as MYCO’s stock has recently been halted on the NEO exchange, and it’s recent financial results show cash reserves down to $300k, not enough to keep things running for even another quarter.
Furthermore, according to reporting in Green Market Report, Mydecine has decided “stop the research that was being conducted in the research facility located in Denver, CO. According to the company’s filing, during the quarter, the employees at this facility were released or transferred to other functions of the company” and that “….management began preparations to liquidate the laboratory equipment and furniture”.
Today’s announcement of a $245K in capital infusion could, perhaps, maybe, signal something hopeful for investors. But things are not looking good. Still, there were some obligatory words of encouragement from CEO and Chairman Josh Bartch: “Mydecine is in the process of several internal changes that we believe will be vital to the future success of the Company,” adding “the Company has made several positive changes to narrow focus, reduce cash burn, increase efficiency to ensure future success. We expect to make several positive updates to the market in near term.”
People are rightly concerned about the future of their investments, so we’ll be covering this story as it develops. See below for the full press release.
Mydecine Innovations Group Announces Private Placement; Interim Changes to Management and Board of Directors
August 19, 2022 11:06 ET | Source: Mydecine Innovations Group Inc.
DENVER, Aug. 19, 2022 (GLOBE NEWSWIRE) — Mydecine Innovations Group Inc. (“Mydecine” or the “Company”) (NEO:MYCO) (OTC:MYCOF) (FSE:0NFA), a biotechnology company engineering the next wave of innovative medications and treatment protocols to directly address mental health with a particular emphasis on addiction and PTSD, is pleased to announce that it has entered into a Common Share Subscription Agreement (the “Subscription Agreement”) with a third-party investor in the Company (the “Subscriber”) on August 15th, 2022. Pursuant to the Subscription Agreement, the Subscriber subscribed for, and the Company issued, 326,666 common shares in the capital of the Company at a subscription price of $0.75 per common share for aggregate gross proceeds to the Company of $244,999.50. The funds raised through this private placement will be used to further the Company’s drug development initiatives.
The Company also announced today that Joshua Bartch, Todd Heinzl, and Robert Roscow have been appointed on an interim basis as members of the Company’s Audit Committee. The appointment of Messrs. Bartch, Heinzl and Roscow follows the resignation of the three independent directors who formerly constituted the Audit Committee from the Company’s board of directors.
“Mydecine is in the process of several internal changes that we believe will be vital to the future success of the Company,” said Mr. Bartch, Mydecine’s chief executive officer and chairman of the board. He further added, “The Company has made several positive changes to narrow focus, reduce cash burn, increase efficiency to ensure future success. We expect to make several positive updates to the market in near term.”
In appointing Messrs. Bartch, Heinzl and Roscow as interim members of the Audit Committee, Mydecine is relying on the exemption provided by Section 3.5 of National Instrument 52-110 (the “Instrument”) from the requirement of in subsections 3.1(3) of the Instrument. The Board of Directors of the Company has determined that reliance on the exemption provided by Section 3.5 of the Instrument will not materially adversely affect the ability of the Company’s Audit Committee to act independently and to satisfy its other requirements under the Instrument.
The Company is actively conducting a search to find suitably qualified individuals to be considered as replacement director nominees to fill the vacancies on the Board and Audit Committee, and to regain compliance with the Instrument.
The Company also announced today that Larry Dean Ditto has resigned as Chief Financial Officer of the Company, for personal reasons. Mr. Ditto’s resignation will be effective as of August 19, 2022. The Company has appointed Damon Michaels, the Company’s chief operating officer, to serve as interim chief financial officer until such time as a suitable replacement for Mr. Ditto is appointed.
About Mydecine Innovations Group Inc.
Mydecine Innovations Group™ (NEO: MYCO) (OTC: MYCOF) (FSE: 0NFA) is a biotechnology company developing the next generation of innovative medications and therapies to address mental health disorders such as nicotine addiction and post-traumatic stress disorder (PTSD). The core strategy blends advanced technology with an elaborate infrastructure for drug discovery and development. Mydecine’s dedicated multinational team constantly develops new paths for breakthrough treatment solutions in areas with considerable unmet needs. By collaborating with some of the world’s leading specialists, the Company aspires to responsibly speed up the development of breakthrough medications to provide patients with safer and more effective treatment solutions. At the same time, Mydecine’s approach focuses on the next generation of psychedelic medicine by creating innovative compounds with unmatched therapeutic potential through its clinical trial efforts with world-class scientific and regulatory expertise. Headquartered in Colorado, USA, Mydecine was founded in 2020, with offices in Alberta, Canada, and Leiden, Netherlands.
Learn more at: https://www.mydecine.com/
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For more information, please contact:
Investor & Media Contact
Investor Relations
contact@mydecineinc.com
On behalf of the Board of Directors
Joshua Bartch, Chief Executive Officer
contact@mydecineinc.com
For further information about Mydecine, please visit the Company’s profile on SEDAR at https://sedar.com/ or visit the Company’s website at https://www.mydecine.com/.