TORONTO, May 14, 2020: Mind Medicine (MindMed) Inc. (“MindMed” or the “Company”) (NEO: MMED, OTCQB: MMEDF), the leading neuro-pharmaceutical company for psychedelic inspired medicines, today announced the release of its unaudited condensed consolidated financial statements (the “Financial Statements”) and accompanying management’s discussion and analysis (the “MD&A”) for the quarter ended March 31, 2020. All financial figures contained herein are expressed in U.S. dollars unless otherwise noted.
First Quarter Highlights and Subsequent Events
· Mind Medicine, Inc. completed its reverse takeover transaction of the Company (then called Broadway Gold Mining Ltd.) by way of a plan of arrangement under the Business Corporations Act (British Columbia) (the “Arrangement”) pursuant to the terms of an arrangement agreement entered into on October 15, 2019 (the “Arrangement Agreement”) between Broadway Gold Mining Ltd., Madison Metals Inc., Broadway Delaware Subco Inc. and the Company.
· MindMed’s subordinate voting shares were listed for trading on the Neo Exchange Inc.
· MindMed raised an aggregate of $18,905,850 (net of share issuance costs of $802,295) through financings completed during the quarter.
· MindMed expanded its leading team of pharmaceutical industry veterans and advisors with deep experience of psychedelics during the quarter.
· MindMed further developed the infrastructure in the period for its drug development platform to discover, develop and deploy psychedelic inspired medicines. As part of this process, the Company actively pursued its strategy to further grow its clinical trial collaborations and intellectual property (IP) acquisitions during this period.
- MindMed established a psychedelics microdosing division and began preparing a Phase 2 trial for microdosing of lysergic acid diethylamide (LSD) for the treatment of Adult Attention Deficit Hyperactivity Disorder (ADHD).
Outlook and Update
- MindMed continues advancing the development of its 18-MC drug development program through further human safety studies and is targeting to begin its Phase 2 trial of 18-MC by the end of the year.
- MindMed is targeting to begin its Phase 2a microdosing trial of LSD for Adult ADHD by the end of the year.
- MindMed continues to pursue new collaborations, acquisitions of IP and clinical trials to build a compelling pipeline and portfolio of psychedelic inspired medicines.
Since inception, the Company has incurred losses while advancing the research and development of its products. Comprehensive loss for the quarter ended March 31, 2020 was $7,020,797. The net loss was due primarily to transaction costs of $2,142,024 related to completion of the Arrangement, research and development expenditures of $1,803,487, compensation paid to management of $1,173,538 and legal fees of $1,045,048.
Research and Development
Research and development expenses by program for the quarter ended March 31, 2020 were as follows(1):
18-MC program $ 585,995
LSD program 1,013,856
Non-program specific 203,635
Total $ 1,803,487
(1) Research and development expenditures in the above table include all direct and indirect costs for the programs, personnel costs, intellectual property.
General and Administrative
General and administrative expenses for the quarter ended March 31, 2020 were $1,880,077 and consisted of consulting fees, short-term benefits and other compensation, legal fees, accounting and audit, marketing, travel and other, and primarily related to the establishment of MindMed and its operations.
Cash and Working Capital
The Company’s cash and working capital at March 31, 2020 was $20,508,184 and $18,752,519, respectively. The increase in cash was primarily due to the $18,905,850 of net financings, net of the cash used in operations of $5,963,088. The increase in working capital was due mainly to the net financings.
Cash Flows from Operating Activities
Cash used in operating activities of $5,100,008 for the quarter ended March 31, 2020 was primarily due to the comprehensive loss of $7,020,797, partially offset by non-cash changes in working capital items and non-cash operating expenses.
Cash Flows from Financing Activities
Cash provided by financing activities totaled $18,905,850 for the period ended March 31, 2020. The funds were provided primarily from various financings completed prior to the Arrangement.
Mind Medicine (MindMed) Inc. is a neuro-pharmaceutical company that discovers, develops and deploys psychedelic inspired medicines to improve health, promote wellness and alleviate suffering. The Company’s immediate priority is to address the opioid crisis by developing a non-hallucinogenic version of the psychedelic ibogaine. In addition, the Company has established a microdosing division to conduct clinical trials of LSD microdosing for Adult ADHD. The MindMed executive team brings extensive biopharmaceutical industry experience to this groundbreaking approach to the development of next-generation psychedelic medicines. For more information: www.mindmed.co.
Cautionary Statements and Disclaimer: This news release contains “forward-looking information” and “forward-looking statements” within the meanings of applicable securities laws, which may include, but is not limited to, statements with respect to anticipated business plans or strategies of MindMed, the anticipated date of completion of micro-dosing studies, the timing of any drug trials, the success of its clinical trials and the ability to enter into acquisitions or collaborations to enhance its drug development platform and IP portfolio. Often, but not always, forward-looking statements can be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or “believes” or variations (including negative variations) of such words and phrases, or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of MindMed to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Forward-looking statements contained herein are made as of the date of this press release and MindMed disclaims, other than as required by law, any obligation to update any forward-looking statements whether as a result of new information, results, future events, circumstances, or if management’s estimates or opinions should change, or otherwise. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements.