Earlier this week, Numinus Wellness Inc. (NUMI) struck a deal to acquire Toronto-based Novamind (NM) for approximately $20.8 million, marking one the of largest mergers to date inside the public psychedelic sector.

For the past couple of years, Novamind, which operates solely in the United States, has made significant advances toward establishing a stronghold in the ketamine clinic niche. Similar to Feild Trip Health (FTRP), Novamind’s clinical footprint has rewarded the company with a meaningful path to profitability, yet the company was still burning through a large amount of money without any signs of fundraising on the horizon. To add, Novamind was successful in getting insurance coverage for ketamine-assisted psychotherapy, which was considered a boon for the deal.

The combined company will continue to operate in 13 wellness clinics and will be positioned as a leading psychedelic-assisted therapy provider in North America.

The acquisition will allow the combined companies to provide the following services, according to the announcement:

  • Ketamine-assisted psychotherapy (KAP)
  • Spravato (esketamine)
  • Transcranial magnetic stimulation (TMS)
  • Talk and group therapy
  • Medication management
  • Psychedelic palliative and neurological care

The clinics will also offer family and couples counseling, as well as in-person and virtual group therapy for expanded access to innovative treatments.

In the video below, Psychedelic Invest’s Adam Tubero discusses how the market reacted to the news and provides insight on how the merger accelerates Numinus’ path to profitability.