Braxia Scientific Corp. (CSE: BRAX) (OTC Pink: BRAXF) (FSE: 4960) (“Braxia Scientific”, or the “Company”), a medical research company with clinics providing innovative ketamine and psilocybin treatments for depression and related disorders, today announced the filing of its financial statements and management discussion and analysis for the three months and six months ended September 30, 2023. Complete financial statements along with related management discussion and analysis can be found in the System for Electronic Document Analysis and Retrieval (SEDAR+), the electronic filing system for the disclosure documents of issuers across Canada, at www.sedarplus.ca.
“Our clinics experienced higher treatment volumes in the first half of fiscal 2024 resulting in strong revenue growth. This demonstrates the demand for critical mental health treatments and therapies that our team of specialized psychiatrists, doctors and nurses provide across our clinical footprint. Our team has continued to focus on reducing expenses and improving efficiencies while also looking to add novel therapies and other support services to our clinical platform to further improve revenues.”
-Dr. Roger McIntyre, CEO, Braxia Scientific
“Looking ahead, the Board has formally initiated a process to explore strategic alternatives and alternative sources of capital or partnerships that may be available to the Company following continued challenges in the economic environment and in accessing capital through public markets. While I remain confident in the continued growth of our clinics, if we are unable to raise additional funding in the short term, we will look at alternate courses of actions including, but not limited to, further cost reductions, restructuring and the potential scaling back of clinic locations.”
Q2 2024 Financial Summary and Recent Highlights
- Revenue increased 30.5% to $0.594 million year-over-year for the three months ended September 30, 2023.
- Revenue increased 36.8% to $1.19 million year-over-year for the six months ended September 30, 2023.
- Net loss was $0.275 million for the three months ended September 30, 2023, compared to a net loss of $2.16 million for the three months ended September 30, 2022.
- Net loss was $1.08 million for the six months ended September 30, 2023, compared to a net loss of $3.13 million for the six months ended September 30, 2022.
- As at September 30, 2023, the Company’s cash and cash equivalents were $0.701 million with a working capital deficit of $0.961 million.
- The Company continued to make progress on its revenue generation and expense reduction initiatives as well as streamlining its operations to prioritize preservation of capital. After further review and in consultation with its legal advisors, the Board of Directors has decided to formally initiate a process to explore strategic alternatives that may be available to the Company to unlock shareholder value. The comprehensive process will begin immediately and will evaluate a broad range of options, including a potential sale of the Company, a merger or other business combination, a sale of all or a portion of the Company’s assets, strategic investment or other significant transaction. Braxia has received strategic inquiries from multiple parties over the past few months.
- The Company has not set a timetable for completion of the process and does not intend to provide any updates on developments unless and until the Company executes a definitive agreement with respect thereto, or the Board otherwise determines that an update is appropriate or required.
- While the Company intends to evaluate all options fairly to maximize shareholder value, there can be no assurance that the strategic review process will result in any transaction, or if a transaction is undertaken, as to its terms or timing.
- The Company also announced the resignation of Olga Cwiek from Braxia Scientific’s Board of Directors effective November 28, 2023. Peter Rizakos, Chief Legal Officer, has been appointed to the Board of Directors. Additionally, the Company announced the departure of Stephen Brooks, Chief Financial Officer, to pursue an opportunity in the private sector. Peter Rizakos, Chief Legal Officer, has been named Chief Financial Officer.
“We thank both Olga and Stephen for their service to Braxia Scientific and wish them success in their future endeavors”
About Braxia Scientific Corp.
Braxia Scientific is a medical research and telemedicine company with clinics that provide innovative ketamine treatments for persons with depression and related disorders. Through its medical solutions, Braxia aims to reduce the illness burden of brain-based disorders, such as major depressive disorder among others. Braxia is primarily focused on (i) owning and operating multidisciplinary clinics, providing treatments in-person and virtually for mental health disorders, and (ii) research activities related to discovering and commercializing novel drugs and delivery methods. Braxia seeks to develop ketamine and derivatives and other psychedelic products from its IP development platform. Through its wholly owned subsidiary, Braxia Health (formerly the Canadian Rapid Treatment Center of Excellence Inc.), operates multidisciplinary community-based clinics offering rapid-acting treatments for depression located in Mississauga, Toronto, Kitchener-Waterloo, Ottawa, and Montreal.