$KONEF Ketamine One Reports Audited Financial Results for the 2021 Fiscal Year
Press Release | 12/13/2021
VANCOUVER, British Columbia, Dec. 13, 2021 (GLOBE NEWSWIRE) -- KetamineOne Capital Limited (“Ketamine One” or the “Company”) (NEO: MEDI) (OTC: KONEF) (Frankfurt: MY0), a company focused on consolidating medical clinics and becoming a North American leader in mental health treatments, is pleased to announce that it has filed its audited financial results for the fiscal year ending July 31, 2021, the highlights of which are included in this news release. The full set of Consolidated Financial Statements and Management Discussion and Analysis can be viewed by visiting the Company’s website at www.ketamine.one or its profile page on SEDAR at www.sedar.com.
Financial Highlights (all amounts expressed in Canadian Dollars unless otherwise noted)
Revenue for the year period ended July 31, 2021 reached $1,131,171, as compared to $nil for the same period of the prior year, which was primarily due transitioning from an investment issuer to a single-purpose company focused on consolidating medical clinics and becoming a North American leader in mental health treatments.
Gross profit for the year ended July 31, 2021 was $793,166, as compared to $nil for the same period of the prior year, due to the aforementioned reason.
Net loss for the year ended July 31, 2021 was $31,914,151, as compared to net income of $1,126,874 reported for the same period of the prior year, primarily due to non-cash expenses of $5,226,365 of share-based payments, $12,324,999 for consideration paid in excess of net liabilities acquired from acquisitions and $8,905,830 of impairment loss on goodwill.
Total assets for the year ended July 31, 2021 increased by 346% to $21,921,195 from $4,919,093 for the same period of the prior year, which was mainly attributable to its acquisition of KGK Science Inc.
Management Commentary
“The 2021 fiscal year was our first as a public issuer and, therefore, was a transformative one as the Company went public, rebranded to Ketamine One, became a single-purpose entity and completed multiple acquisitions. We have accomplished a great deal this year to build a strong foundation as one of the top mental health and digital therapeutic platforms in North America,” said Adam Deffett, Interim CEO of Ketamine One. “We are assembling a talented team and a unique platform of synergistic assets to advance innovative treatments and technologies. I believe we have shown the great potential of combining our clinics with an established contract research organization and using those assets to advance digital therapeutics. KGK Science continues to secure new business, the portfolio of clinics keeps evolving, and our corporate development efforts have resulted in new partnerships and a growing list of opportunities across North America, which we look forward to developing further throughout the year,” added Mr. Deffett.
Subsequent Highlighted Events (all amounts expressed in Canadian Dollars unless otherwise noted)
Scent-Enabled Virtual Reality Via Exclusive Agreement for Psychedelic Molecules With OVR Technology: On August 4, announced an exclusive agreement for the use of virtual reality technology in psychedelic treatments with OVR Tech LLC to provide its INHALE Wellness Platform over an initial term of two years in Ketamine One’s clinics.
Multiple New Contracts for KGK Science: On August 16, announced that KGK Science had secured a significant amount of new business in the form of four newly signed contracts with third-party clinical research and regulatory service clients. KGK was also formally selected to conduct the clinical trials for four other parties, the contracts of which are currently being negotiated and finalized.
Medical Advisory Board: On August 23, announced the establishment of a Medical Advisory Board (“MAB”) to help guide the development of Ketamine One’s mental health platform and other aspects of the Company.
IRP Health Expands With New Veteran-Focused Clinics: On August 30, announced that its wholly owned subsidiary, Integrated Rehab and Performance Ltd., is expanding its business through the addition of four new, veteran-focused, multidisciplinary clinics in the Comox Valley, Ottawa, Halifax and Surrey.
Deployment of Cognetivity’s Integrated Cognitive Assessment Tool: On September 1, announced that it had reached a commercial agreement with Cognetivity Neurosciences Ltd. (“Cognetivity”) for Cognetivity’s Integrated Cognitive Assessment to be deployed in Ketamine One’s clinics across North America.
Engages Psychology & Counselling Services Group for IRP Health: On September 14, announced that it had entered into an agreement with Psychology & Counselling Services Group to provide psychology, therapy, dietary and other mental health services for Ketamine One’s subsidiary, IRP Health Ltd., as early as October of 2021.
LOI with Veteran Services USA to Open Therapy Center: On September 21, announced that it had recently signed a non-binding letter of interest with Veteran Services USA to lease approximately 5,000 square feet of space over an initial term of five years in Blue Island, Illinois.
KGK Science Contracted To Support A Ketamine Clinical Trial In The US: On October 6, announced that its wholly-owned contract research organization, KGK Science Inc., had recently been contracted by a third party to develop the protocol and Informed Consent Form to support its Institutional Review Board application related to a ketamine clinical trial planned to be conducted by a clinic operator within its medical facilities located in Miami, Florida.
Launching Two Inaugural Research Studies: On October 14, announced that it would be launching a single arm, open label study of patients with post-traumatic stress disorder who are undergoing the proprietary physical therapy program at the Company’s IRP Health clinics as well as an observational, single-arm, pilot study aimed at collecting objective biometric data and validated psychiatric instrument measures of efficacy in patients with depression symptoms who are receiving IV ketamine infusion therapy. Both studies have now received IRB approvals.
Biostrap Part of Inaugural Research Studies: On October 20, announced that it would be conducting its previously announced single arm, observational, biometric research studies in association with Biostrap USA, LLC across multiple locations in Canada and the United States.
Virtual Mental Healthcare Platform in Partnership With iHealthOX: On November 4, announced that it had entered into a telehealth and virtual health partnership to increase accessibility and service offerings to its patients (the “Telehealth Strategy”). In order to better address the needs of patients as well as incorporate the Telehealth Strategy across its portfolio of mental health clinics, contract research capabilities and its focus on digital therapeutics, the Company had also announced the launch of a new patient-facing website at www.ketamine.one/patients/home.
Intention to Submit Draft Registration Statement for Proposed U.S. Initial Public Offering: On November 9, announced that it intended to confidentially submit a draft registration statement on Form S-1 to the U.S. Securities and Exchange Commission (the "SEC") relating to a potential initial public offering (“IPO”) of its common shares in the United States. The IPO is expected to be for up to USD 20 Million of Ketamine One’s common shares and is currently expected by Company management to occur in the first half of 2022. The number of common shares to be offered, the use of proceeds, and the price range for the proposed IPO have not yet been determined.
IRP Health Opened Two New Veteran-Focused Clinics: On November 16, announced that its wholly owned subsidiary, IRP Health Ltd. (“IRP” or the “Subsidiary”), opened its Comox Valley and Ottawa clinics (the “Two Clinics”). As previously announced, the Two Clinics are veteran-focused facilities and multidisciplinary in nature. To date, IRP has successfully performed over 10,000 unique treatments for past or present personnel of the Canadian Armed Forces and the Royal Canadian Mounted Police (“RCMP”), as well as first responders including firefighters, law enforcement officers, paramedics and emergency medical technicians.
KGK Science Helps Client Receive New Dietary Ingredient Status from U.S. FDA: On December 2, announced that its wholly owned contract research organization, KGK Science Inc., successfully assisted its client, Hofseth Biocare ASA (HBC.OL) (“HBC”), to receive New Dietary Ingredient status from the United States Food and Drug Administration for its patented CalGo® and OmeGo® branded products. HBC is a leading manufacturer and marketer of unique and innovative marine-derived calcium, protein, collagen, and lipid nutritional supplements.
Partners with Cognetivity Neurosciences in Collaborative Clinical Study on Depression and PTSD: Also on December 2, announced that it entered into a collaborative partnership with Cognetivity Neurosciences Ltd. (CSE: CGN; OTCQB: CGNSF; FWB: 1UB) (“Cognetivity”) to study and develop assessments for depression and post-traumatic stress disorder (“PTSD”). In the initial stage of the partnership, Cognetivity and Ketamine One will partner on two separate clinical studies, one for depression and the second for PTSD. Protocols for both studies have received Institutional Review Board approval and patient recruitment is expected to occur in early 2022. Ketamine One’s wholly owned subsidiary, KGK Science Inc., will lead the study, while Cognetivity will lead the analysis.
Adds Seattle Location To US Clinical Network: On December 8, announced that it had been engaged by Dr. Tami Meraglia to establish a ketamine infusion clinic in Seattle, Washington. The new clinic will operate as Seattle Ketamine Infusions (“SKI” or the “Clinic”) and be located at 311 West Republican Street. Dr. Meraglia is focused on the areas of personalized intravenous treatments and is also a national best-selling author and frequent media guest regarding total health and wellness topics. Ketamine One will provide training, protocol development, and ongoing support for the Clinic, with the first patient treatments expected at SKI in early 2022.
Termination of NY Ketamine acquisition: The Company announces today that it and NY Ketamine Medical Practice, PLLC (“NY Ketamine”) have mutually agreed to terminate the letter of intent previously announced on April 5, 2021 pursuant to which the Company was working to acquire NY Ketamine. Ketamine One remains active in evaluating the acquisition of clinic assets in several US states and is focused on growing its network of existing clinics across North America.
Departure of CMO: The Company announces today that its Chief Medical Officer, Dr. Mark Kimmins, has departed the organization. Ketamine One thanks Dr. Kimmins for his service as an officer of the Company since June of this year.
Outlook
Ketamine One continues to grow its mental health platform across North America and integrate its suite of complimentary assets to provide patients with innovative treatments, both in our clinics and beyond. The Company has seen early success in leveraging its clinics and KGK to bring exciting technology partners to its platform. Looking ahead, management expects to expand Ketamine One’s partnerships and to help validate products through clinical testing and the growth of the market for emerging treatments and therapeutics. The Company is also planning to expand the programs being offered in-clinic and advance its veteran health initiatives.
ABOUT KETAMINE ONE
KetamineOne Capital Limited (formerly Myconic Capital Corp.) is a company focused on consolidating medical clinics and becoming a North American leader in mental health treatments. It is working to provide the critical infrastructure needed to develop and deliver breakthrough mental health treatments. Currently, Ketamine One has a network of clinics across North America, with plans to further consolidate the highly fragmented industry. KGK Science Inc. is the Company’s wholly-owned contract research division, which places it at the forefront of premium clinical research based on the subsidiary’s history and extensive experience in pharmaceuticals, cannabis, and the emerging psychedelic medicine industries. As a collective enterprise, Ketamine One is dedicated to helping solve the growing need for safe and accessible mental health therapy.
On behalf of:
KETAMINE ONE
"Adam Deffett"
Adam Deffett, Interim CEO
For further information, please contact:
Nick Kuzyk, Investor Relations
Tel: 1-844-PHONE-K1 (1-844-746-6351)
Email: IR@ketamine.one
Web: www.ketamine.one
Twitter: @KetamineOne
Notice Regarding Forward-Looking Information:
This news release contains forward-looking statements including but not limited to statements regarding the Company’s business, assets or investments, as well other statements that are not historical facts. Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will not occur, which may cause actual performance and results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements. These assumptions, risks and uncertainties include, among other things, the state of the economy in general and capital markets in particular, investor interest in the business and prospects of the Company.
The forward-looking statements contained in this news release are made as of the date of this news release. Except as required by law, the Company disclaims any intention and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities law. Additionally, the Company undertakes no obligation to comment on the expectations of, or statements made, by third parties in respect of the matters discussed above.
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