Numinus Wellness (TSXV: NUMI) is acquiring that of Mindspace Psychology Services, whom operates as Mindspace Wellbeing, a reported leader and pioneer in psychedelic programming. The quote-filled announcement was made this morning, with Numinus stating that it will enable the company to provide an evidence-based psychedelic assisted psychotherapy program to patients.
The release this morning began by outlining how the two firms were a “strong corporate and cultural fit,” and how the partners share “a vision and values,” which likely doesn’t bode well for the company actually acquiring anything of deep value.
The acquisition of Mindspace will enable Numinus to add Montreal to its areas of service, with the company reportedly having three locations within the city as well as “extensive” virtual services. The company has reportedly generated revenue of $1.7 million over the prior twelve months, which is expected to grow with the addition of ketamine-assisted therapy to the firms current offerings.
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Notably, the “Corporate Wellbeing” practice of Mindspace is not included within the current acquisition agreement, which is now slated to be rebranded. The three locations that are being acquired will continue to be operated by founder Dr Joe Flanders, under the banner “Mindspace by Numinus.”
The terms of the acquisition will see Numinus pay $500,000 upon closing of the transaction, along with a time-based payout of 441,176 common shares of the company over 24 months. The company is to also pay $100,000 in Numinus shares at market price on the first three anniversaries of the closing date of the transaction, while also paying a multi-year performance payout of $800,000 in Numinus shares at market price. The timing of the final payout arrangement is unclear.
The transaction is expected to close by December 31, 2020.
Numinus Wellness last traded at $2.23 on the TSX Venture.
Information for this briefing was found via Sedar and Numinus Wellness. 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.
