Psychedelic medicine firms are adjusting to a new reality. Back in 2021 psychedelic companies had enough capital to expand into many different divisions: drug development, clinics, and technology. But the market has not yet recovered from its long downturn and capital is not flowing the way it once did.

So companies across the sector are tightening belts and closing clinics and beginning to buy each other out.

From Field Trip closing shop, to Ketamine Wellness closing over a hundred clinics, to Cybin buying Small Pharma — the industry has fully entered its next stage.

Numinus is joining this evolution. The company is ceasing operating activities at Numinus Bioscience – its non-revenue producing research lab — and is consolidating certain of its clinic operations.

“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.”

Numinus will wind down a handful of clinics and following these changes, Numinus will “operate 11 wellness clinic locations and three clinical research sites operated by Cedar Clinical Research.”

How much will the closing of the bioscience division hurt the company’s long-term potential? Will Numinus become strictly clinic-focused?

To be determined. See the full press release below and stay tuned for more.

Numinus Takes Actions to Accelerate its Path to Profitability by Focusing on Positive Cash Flow Generating Operations

• 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.