Numinus Wellness (NUMI.V) announced they are going to acquire Neurology Centre of Toronto (NCT), pursuant to a purchase agreement from July 2, 2021.
To acquire the centre, Numinus will pay $300,000 in cash and $200,000 in Numinus shares upon closing and future performance-based payments totaling $500,000. The transaction is still subject to a number of conditions, including approval by the TSX Venture and some further due diligence. They expect to finalize the deal by the end of August 2021.
So what is Numinus getting?
Well, they’re getting a fully operational neurology centre with 13 doctors, 8 allied health staff, nurse practitioners and physician assistants which brought in $1 million in gross revenue in 2020, with a net revenue of $454,000 in that same time span. That’s right, for up to $1 million, Numinus will be getting a centre with nearly half a million in net revenue per year, and it could even be higher, as the 2020 revenue represented a 25% growth from the year before.
“I continue to be humbled by the quality of people joining Numinus and acting with us on our ambition to help people heal and be well,” stated Payton Nyquvest, Numinus CEO and Chair. “The acquisition of NCT reflects our thoughtful expansion strategy to add clinics that offer revenue-generating services, accretive assets and innovative leadership that maintains our position at the forefront of client care and psychedelic-assisted therapy.”
The NCT also provides the Numinus with experience in clinical neurology and associated mental health disorders, expertise which NUMI can combine with their existing psychedelic-assisted psychotherapy practices. The hope is that by combining their knowledge and expertise, they can establish the field of psychedelic neurology. That’s right, these guys are talking about establishing their own fucking field. Honestly, you have respect that level of ambition.
“This acquisition represents an exciting opportunity for NCT and Numinus to combine medical, clinical and academic expertise to help create a new discipline and ultimately a centre for excellence in psychedelic neurology,” stated Dr. Evan Wood, Chief Medical Officer for Numinus. “In doing so, this collaborative discipline could potentially make a transformative difference for many patients.”
All of NCT’s staff are expected to stay on and in a short video the two parties put out, Nyquvest said that he and Dr. Evan Lewis, NCT’s Founder, had been speaking for years, so the partnership being developed is off to an auspicious start.
NCT and Numinus plan to establish the first centre for excellence in psychedelic neurology, comprising highly specialized neurology experts with an understanding of how psychedelics can safely and positively impact patients with neurologic illnesses, and the press release specifically names MDMA and psilocybin as substances which open new pathways in the brain that they believe could be used for therapy.
“Our collaboration with Numinus represents an important evolution in patient care for individuals suffering from common neurological illnesses and challenges that are often associated with chronic mental health conditions,” stated Dr. Lewis. “While today’s treatments help many patients, a significant number continue to suffer and, we believe, may be helped by psychedelic-assisted psychotherapy.”
Following the news, Numinus shares are down 2 cents and are currently trading at $0.86.