Breaking News: Numinus Wellness to Acquire Novamind | Microdose

Yesterday there were murmurs across Twitter and shroom-stock Reddits as both Numinus and Novamind had their trading halted. Rumors were abound and today the mystery was solved.

Numinus Wellness has acquired Novamind. 

We’ve been expecting this to happen in one way or another. 2022 has been predicted to be the “year of market consolidation”, with companies like MindCure folding their psychedelic operations and proving that the trend may indeed be starting.

I’m sure we’ll get more details and commentary, but for now here are some of the key takeaways:

• The deal is an all-share transaction, for a total consideration of approximately C$26.2 million 
• Shareholders of Novamind will receive 0.84 of a common share of Numinus for each Novamind share held (known as the “Exchange Ratio”). The price was at a premium of 51% to Novamind’s 20-day volume-weighted average price as of April 8, 2022 — showing that deal was one of sincere courtship rather than down-market predation.
• The combined company will operate 13 wellness clinics in North America, with approx revenue of C$10 million (supposedly top in the industry).
• The combined company will operate four clinical research sites and a bioanalytical laboratory, as well as several clinical trials

This comment from Yaron Conforti, CEO and Co-Founder of Novamind, sums up the potential pros of this deal nicely: 

“This transaction offers significant value for Novamind’s shareholders and provides compelling new opportunities for our employees, patients and research partners. The combination of Novamind’s network of mental health clinics and research sites in the U.S. and Numinus’ leadership in psychedelic-assisted psychotherapy in Canada creates a best-in-class company. The combined entity is supported with over C$50 million in pro-forma capital and positioned with distinct capabilities to serve a growing and diverse group of stakeholders. We are excited to join Numinus, a true leader in mental health innovation.” 

Highlights of the Transaction will also be discussed on Numinus’ upcoming Q2 2022 results conference call, occurring at 5:30 pm ET / 2:30 pm PT on Thursday, April 14, 2022. 

See the full press release below.

• Complementary businesses combine to create a preeminent North American platform with operations spanning 13 wellness clinics, four research sites and one bioanalytical laboratory
• Shared mission of responsibly reintroducing psychedelic therapy to mental healthcare
• Hosting clinical trials for MDMA (MAPS Public Benefit Corporation), psilocybin (the Usona Institute), LSD (MindMed) and ketamine (the University of Utah)
• Combined C$10 million in annual pro-forma revenue based on the trailing four quarters
• Acquisition is expected to generate C$3 million in annual cost synergies
• Transaction expected to close in June 2022, following anticipated shareholder approval

VANCOUVER, BC and TORONTO, April 12, 2022 /CNW/ – Numinus Wellness Inc.…