Back in January, we reported that Irwin Naturals Signed a Letter of Intent to Acquire Braxia Scientific.

Yesterday we received news that Irwin Naturals has backed out of the deal to buy Braxia, terminating the non-binding agreement and Letter of Intent.

Why did Irwin change its mind? What did it find in due diligence?

A big part of Braxia’s business was in ketamine treatment clinics and its ketamine telemedicine platform KetaMD — did the recent industry problems in clinics and telehealth lead to Irwin re-assessing the move?

As we reported this week, there’s been a string of treatment clinic closings, from Field Trip Health closing 5 clinics to Ketamine Wellness shutting their treatment clinics, as well as the new government rules that affect access to ketamine telehealth.

This is speculation, but the changing landscape in these segments could have affected Irwin’s decision to make a large investment in the space (Braxia shares were valued at US$30,000,000 in the LOI).

This could be another marker of a new industry reality.

See below for the full press release.

Braxia Scientific Provides Update on Proposed Irwin Transaction; Company Retains Strategic Clinical Assets and Ketamine and Psychedelics Clinical IP

Toronto, Ontario–(Newsfile Corp. – March 16, 2023) – Braxia Scientific Corp. (CSE: BRAX) (OTC PINK: BRAXF) (FWB: 4960) (“Braxia”, or the “Company”), a medical research and telemedicine company with clinics providing innovative ketamine and psilocybin treatments for depression and related disorders, announces that Irwin Naturals Inc. (“Irwin”) has terminated the non-binding amended and restated letter of intent (“LOI”) for a business combination between Irwin and Braxia (the “Proposed Transaction”). Full details of the Proposed Transaction were contained in the Company’s news release dated January 27, 2023.

“We are disappointed with the decision by Irwin and that we could not complete the transaction,” said Dr. Roger McIntyre, CEO of Braxia. “The Braxia team remains well positioned as global leaders in depression and ketamine research, as ranked by Expertscape, with high quality, trusted clinics and a telemedicine platform launched in the United States.”

Braxia Maintains its Strategic Clinical IP, Telemedicine and Research Infrastructure Assets and Capabilities

Braxia and its clinical management team remain market leaders in the research and delivery of mental health novel treatments. The Company is pleased to maintain its strategic assets across three important business verticals – including its Clinical Operations in Canada, a US-based telemedicine platform and International Clinical Research Infrastructure.

“Over the last year, we have accomplished several key milestones in mental health research and development. We are moving forward with our current strategy of developing our clinical operations in Canada, currently providing Ketamine and Psilocybin treatments, while building out our strategic and highly scalable telemedicine business with KetaMD, Inc. in the US. We are also actively building our CRO business providing capabilities and research services to pharmaceutical companies looking to quickly develop or co-develop IP in novel therapeutics”, concluded Dr. McIntyre.

The Company remains committed to evaluating a number of potential strategic opportunities to create shareholder value in the mental health industry which continues to evolve and consolidate.

About Braxia Scientific Corp.

Braxia is a medical research and telemedicine company with clinics that provide innovative ketamine treatments for persons with depression and related disorders. Braxia also launched its U.S. based end-to-end telemedicine platform KetaMD, that utilizes leading technology to provide access to safe, affordable, and potentially life-changing at-home ketamine treatments for people living with depression and related mental health conditions. Through its medical solutions, Braxia aims to reduce the illness burden of brain-based disorders, such as major depressive disorder among others. Braxia is primarily focused on (i) owning and operating multidisciplinary clinics, providing treatments in-person and virtually for mental health disorders, and (ii) research activities related to discovering and commercializing novel drugs and delivery methods. Braxia seeks to develop ketamine and derivatives and other psychedelic products from its IP development platform. Through its wholly owned subsidiary the Canadian Rapid Treatment Center of Excellence Inc., carrying on business as Braxia Health, the Company operates multidisciplinary community-based clinics offering rapid-acting treatments for depression located in Mississauga, Toronto, Kitchener-Waterloo, Ottawa, and Montreal.