November 30, 2022

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Mydecine Reports First Quarter 2021 Financial Results and Provides Business Update

Strategic Partnerships Expand Drug Development Capabilities to More Efficiently and Rapidly Lead the Next Generation of Psychedelic-Assisted Therapeutics

DENVER, May 18, 2021 (GLOBE NEWSWIRE) — Mydecine Innovations Group (NEO: MYCO) (OTC: MYCOF) (FSE: 0NFA) (“Mydecine” or the “Company’), an emerging biopharma and life sciences company committed to the research, development, and acceptance of alternative nature-sourced medicine for mainstream use, today reported its financial results for the first quarter ended March 31, 2021 and provided a business update.

“Mydecine accomplished a number of key milestones in the first quarter of 2021 which collectively advanced our mission to bring one of the most robust portfolios of nature-sourced psychedelic-assisted therapeutics to the forefront of the mental health industry,” stated Joshua Bartch, CEO of Mydecine. “Most notably, we achieved the first-ever international export of psilocybin mushrooms and solidified our clinical and commercial supply chain in order to advance our R&D. This supply advantage, combined with our API and LeadGens Lab partnerships, strategically advances our drug development and clinical trials, further positioning Mydecine to lead the next-generation of synthetic and naturally-derived psilocybin novel compounds. We are extremely pleased to have reached this critical point in our development and look forward to building upon these successes in the months ahead.”

Mr. Bartch added, “In addition to the key operational milestones achieved In the first quarter of 2021, we raised C$20 million, and I am pleased to report that Mydecine is well-funded to continue to strategically act on our growth strategy, including the advancement of our IP portfolio, build out of our clinical trial calendar, expansion of our European operations and development of our technology division.”

Business Highlights During and Subsequent to the First Quarter 2021

Enhanced Partner Relationships

  • Entered into an exclusive partnership with Applied Pharmaceutical Innovation (API) at the University of Alberta, and further expanded capabilities that enable support of multiple drug development and clinical trial programs simultaneously.

  • Partnered with LeadGen Labs, a custom synthesis and contract research organization, to support the Company’s novel psychedelic drug development efforts and considerably increase the number of novel molecules it can synthesize concurrently.

Secured Clinical and Commercial Supply of Psilocybin Mushrooms

Further Developed International Operational Footprint

  • Michel Rudolphie, former Novartis Norway CEO and former CEO and President of Make-A-Wish International, joined the Company as President of European Operations to develop and lead strategy, business development and comprehensive success across Europe.

  • Partnered with Principal Investigator Dr. David Erritzoe at Imperial College London (ICL) to conduct leading research in psychedelics, as well as the creation of novel collaborative pyschopharmacology/psychedelic research clinic between ICL and a major mental health NHS Trust in London.

Strengthened IP Portfolio

  • Filed seven provisional patent applications with the United States Patent and Trademark Office (USPTO) in its efforts to discover valuable novel compounds in fungi for medicinal and pharmaceutical use.

  • Filed provisional patent for Mindleap’s mental health technology with the USPTO and the Canadian Intellectual Property Office.

Improved Capital Markets Positioning

  • Raised C$20 million through bought deal offerings.

  • Migrated to the NEO Exchange and commenced trading on March 23, 2021.

  • Submitted formal application to list on the NASDAQ Stock Exchange.

Financial Results for the First Quarter 2021

Net Loss: Net loss attributable to common stockholders was $5.2 million for the first quarter 2021, or a basic and diluted loss per share attributable to common stockholders of $0.03, as compared to a net loss attributable to common stockholders of $0.2 million for the first quarter 2020, or a basic and diluted loss per share attributable to common stockholders of $0.01.

Cash Position: As of March 31, 2021, the Company had cash and cash equivalents of $11.3 million.

About Mydecine Innovations Group
Mydecine Innovations Group™ (NEO:MYCO) (OTC:MYCOF) (FSE:0NFA) is an emerging biotech and life sciences company dedicated to developing and commercializing innovative solutions for treating mental health problems and enhancing vitality. The company’s world-renowned medical and scientific advisory board is building out a robust R&D pipeline of nature-sourced psychedelic-assisted therapeutics, novel compounds, therapy protocols, and unique delivery systems. Mydecine has exclusive access to a full cGMP certified pharmaceutical manufacturing facility with the ability to import/export, cultivate, extract/isolate, and analyze active mushroom compounds with full government approval through Health Canada. Mydecine also operates out of a state-of-the-art mycology lab in Denver, CO to focus on genetic research for scaling commercial cultivation of rare (non-psychedelic) medicinal mushrooms.

At the heart of Mydecine’s core philosophy is that psychedelic-assisted psychotherapy will continue to gain acceptance in the medical community with many of the world’s best accredited research organizations demonstrating its remarkable clinical effectiveness. Mydecine recognizes the responsibility associated with psychedelic-assisted therapy and will continue to position itself as a long-term leader across the spectrum of clinical trials, research, technology, and global supply. Mydecine has also successfully completed multiple acquisitions since its inception.

Learn more at: https://www.mydecine.com/ and follow us on Facebook, Twitter, and Instagram.

For more information, please contact:

Media Contacts
Anne Donohoe / Nick Opich
KCSA Strategic Communications
[email protected]
1-212-896-1265 / 1-212-896-1206

Investor Contacts
Charles Lee, Investor Relations
[email protected]
1-720-277-9879

Allison Soss / Erika Kay
KCSA Strategic Communications
[email protected]
1-212-896-1267

On behalf of the Board of Directors:
Joshua Bartch, Chief Executive Officer
[email protected]

For further information about Mydecine Innovations Group, Inc., please visit the Company’s profile on SEDAR at www.sedar.com or visit the Company’s website at www.mydecine.com.

This news release contains forward-looking information within the meaning of Canadian securities laws regarding the Company and its business, which relate to future events or future performance and reflect management’s current expectations and assumptions. Often but not always, forward-looking information can be identified by the use of words such as “expect”, “intends”, “anticipated”, “believes” or variations (including negative variations) of such words and phrases, or state that certain actions, events or results “may”, “could”, “would” or “will” be taken, occur or be achieved. Such forward-looking statements reflect management’s current beliefs and are based on assumptions made by and information currently available to the Company. Readers are cautioned that these forward-looking statements are neither promises nor guarantees, and are subject to risks and uncertainties that may cause future results to differ materially from those expected including, without limitation, risks regarding the COVID-19 pandemic, the availability and continuity of financing, the ability of the Company to adequately protect and enforce its intellectual property, the Company’s ability to bring its products to commercial production, continued growth of the global adaptive pathway medicine, natural health products and digital health industries, and the risks presented by the highly regulated and competitive market concerning the development, production, sale and use of the Company’s products. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. These forward-looking statements are made as of the date hereof and the Company does not assume any obligation to update or revise them to reflect new events or circumstances save as required under applicable securities legislation.

MYDECINE INNOVATIONS GROUP INC. (FORMERLY NEWLEAF BRANDS INC.)
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(EXPRESSED IN CANADIAN DOLLARS)

As at,

March 31,
2021
$

December 31,
2020 (audited)

$

Current assets

Cash

11,324,999

2,190,702

Rent receivable

45,351

27,746

Accounts receivable

9,593

Inventory

36,620

47,262

Sales tax receivable

17,711

13,734

Prepaids and deposits

3,982,350

216,003

Total current assets

15,416,624

2,495,447

Non-current assets

Intangible asset

155,617

Investment in joint venture

617,309

620,092

Investment in associate

4,304,874

4,481,988

Right-of-use asset

198,036

223,645

Investment properties

1,400,855

1,418,345

Property and equipment

405,961

291,614

Total assets

22,499,276

9,531,131

Current liabilities

Accounts payable and accrued liabilities

920,817

1,187,486

Convertible debentures

464,770

2,959,755

Derivative liabilities

1,440,368

1,586,744

Lease liability – current portion

71,760

69,329

Total current liabilities

2,897,715

5,803,314

Non-current liabilities

Long-term portion of lease liability

141,007

167,118

Total liabilities

3,038,722

5,970,432

Shareholders’ equity

Share capital

105,408,931

85,298,435

Contributed surplus

13,923,899

12,734,636

Equity portion of convertible debentures

35,107

254,690

Accumulated other comprehensive income

(468,601

)

(444,803

)

Deficit

(99,438,782

)

(94,282,259

)

Total shareholders’ equity

19,460,554

3,560,699

Total liabilities and shareholders’ equity

22,499,276

9,531,131

MYDECINE INNOVATIONS GROUP INC. (FORMERLY NEWLEAF BRANDS INC.)
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF LOSS AND COMPREHENSIVE LOSS
(EXPRESSED IN CANADIAN DOLLARS)

For the three-month period ended,

March 31,
2021

March 30,
2020

Sales

16,012

4,575

Cost of goods sold

(10,128

)

(2,875

)

Gross margin

5,884

1,700

Expenses

Finance cost

95,737

248

Corporate development

1,998,027

4,978

Amortization

41,532

27,428

Consulting fees

1,023,921

4,270

Director and management fees

490,876

117,617

Foreign exchange loss

222,375

(127,964

)

Office and miscellaneous

84,220

13,813

Share of losses from investment in Joint Venture

2,783

Share of losses from investment in Associate

157,219

Professional fees

653,055

25,474

Regulatory and filing fees

165,636

2,057

Research and development

230,210

Share-based payments

174,028

Total expenses

(5,165,591

)

(241,949

)

Other income (expense)

Change in fair value of derivative liabilities

(27,656

)

Rental income

33,159

47,883

Loss on settlement of debt

(2,319

)

3,184

47,883

Net loss for the period

(5,156,523

)

(192,366

)

Foreign currency translation adjustment

(23,798

)

Net loss and comprehensive loss for the period

(5,180,321

)

(192,366

)

Net loss per share – Basic and diluted

(0.03

)

(0.01

)

Weighted average number of shares outstanding – Basic and diluted

206,368,298

33,438,205