In a sign of what’s to come for most psychedelic-related names, Mind Cure Health (CSE: MCUR) this morning effectively announced it will be turning itself into a shell. The move follows a strategic review conducted by the company.
The strategic review is said to be done just its initial phases of the process, which included “an extensive canvas of various strategic alternatives available.” The review however has indicated that the company simply does not have the funds to execute its current strategy, and that the current environment is unlikely to provide the capital required to move forward. In simple terms, tailwinds have exited the psychedelic and psychedelic-adjacent sector, with investors unwilling to provide further capital to support the space.
As a result of the findings, the company has identified that “none of the strategic alternatives available to the company necessitated ongoing developmental expenditures.”
As such, the company has decided that it needs to cut all expenditures, as a means of “preserving the value” of the firms assets – which appears to largely be a reference to its cash position and public company status rather than anything else. To do so, the board has fired the entire C-Suite, save for its CFO, as well as the entire workforce, save for the VP of engineering and certain admin staff needed to wind down operations.
More specifically, all R&D on its ibogaine program and Desire Project are to be halted, as well as all non-committed expenditures related to iSTRYM.
The company reported that as of yesterday it had $10.57 million in cash on hand, before any liabilities are considered, which may include termination payouts for the staff eliminated as a result of this mornings decision.
With the departure of the C-suite, the firms chairman, Philip Tapley, has been named as interim CEO of the company.
Mind Cure Health last traded at $0.075 on the CSE.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
