This week in psychedelic business news: A psychedelics company folds; Ketamine Wellness Centers expand; Nova Mentis funds psilocybin studies.
Mind Cure Halts Psychedelic Business Strategy
Not ever psychedelic business can be a winner, and this week we saw the fall of one that had been on our radar for its effort to produce synthesized ibogaine and research MDMA therapy for a female sexual desire disorder. However, Mind Cure Health announced this past Wednesday it is shuttering its current business strategy revolving around psychedelic medicine and laid off most of its staff, citing lack of capital to effectively pursue that business model. Is this the first in a domino effect throughout the psychedelic business as investor money dries up? Only time will tell if more companies are forced to follow suit.
New Clinics Open in U.S. and Canada
Meanwhile, others in the psychedelic business space are flourishing. Ketamine Wellness Centers (KWC), the largest ketamine therapy provider in the U.S. and a subsidiary of Delic Holdings Corp (CSE: DELC) (OTCQB: DELCF) (FRA: 6X0), has opened a 2,200 square-foot treatment facility in Reno, Nevada. It's the company's second clinic in Nevada, bringing the total number of KWC clinics to 13 across nine states, and with Nevada bordering California and frequently attracting visitors from the Golden State, the company can also tap into that market as well.
Up in Canada, SABI Mind — a client-centered, Calgary-based psychedelic-assisted therapy clinic — just opened its doors. It's the only clinic in Alberta that is supported by multidisciplinary specialists in pain and mental health providing an integrated, holistic model of care. Its evidence-based treatment approach bolsters ketamine and other psychedelic treatments with psychotherapy within an environment conducive to healing.
While some companies are closing shop because of lack of investment, others continue to thrive through shareholders. Nova Mentis has completed a non-brokered private placement financing for total gross proceeds of $1,483,500, which will fund the launch of its autism spectrum disorder (ASD) North America Observational Study, as well as a Health Canada Phase 2a fragile X syndrome (FXS) clinical study. The Canadian-based biotechnology company is studying the potential application of its proprietary psilocybin microdose formulations on both of those mental health conditions.
Irwin Naturals (CSE: IWIN) (OTC: IWINF) (FRA: 97X) is getting in on the ketamine clinic market as well. As Psychedelic Spotlight previously reported, the supplement brand is launching Emergence by Irwin Naturals, a chain of ketamine clinics with the intention to drive down costs, providing wider access to individuals needing the radically effective treatment the most. The company announced this week is has official acquired its first ketamine clinic, Midwest Ketafusion, in Iowa City. “Our intention is to leverage our first mover advantage into the ketamine space as a household brand known by over 100 million North Americans, and create the largest chain of clinics,” says CEO Klee Irwin. “We want to make this incredibly effective treatment available to everyone who needs it. We are pleased to welcome the Ketafusion team as part of the Irwin Naturals family and look forward to informing our shareholders as we continue to execute and accelerate our growth.”
Optimi Health (CSE: OPTI) (OTCQB: OPTHF) (FRA: 8BN) has commenced the cultivation of natural GMP-grade psilocybin mushrooms at its Princeton, British Columbia facility. It's a big step for the Canadian-based company that intends to become a world supplier in the cultivation and formulation of natural psilocybin. “These mushrooms are an important milestone in Optimi’s commitment to establishing a supply of safe, natural psilocybin products for use by approved parties engaged in clinical trials,” says Optimi Health CEO Bill Ciprick. “Since the completion of our 20,000 square foot cultivation and processing facilities and the approval of our Controlled Drugs and Substances Dealers License by Health Canada, Optimi has pressed forward with the goal of generating revenue and demonstrating a system of safe supply that can scale with the needs of the sector while participating in research crucial to the advancement of psychedelic science.”