Numinus Takes Actions to Accelerate its Path to Profitability by Focusing on Positive Cash Flow Generating Operations
VANCOUVER, BC, Sept. 18, 2023
- 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.
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.
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.
SOURCE Numinus Wellness Inc.