After an internal strategic review, Mind Cure Health Inc. (CSE: MCUR) (OTCQX: MCURF) announced that it is shutting down after determining it can’t raise the money it needs to continue operating. The stock halted trading when the news was released yesterday but later resumed and fell by 38%.
The company said it will cut all of its staff, including most C-suite executives. The CFO and VP of Engineering were called out as necessary to ensure the company maintains at the much lower level of committed expenditures moving forward.
“Though we continue the Strategic Review Process, we have identified no available strategic alternatives that would require further development and execution of MINDCURE’s existing business plan. As a result, we have determined that the Company should immediately move to reduce all non-necessary expenditures except as required to preserve the value of the Company’s cash balance and other assets,” said the Chair of MINDCURE’s Special Committee, Jason Pamer.
This news demonstrates the importance of funding for early-stage life science companies. Without revenue flowing in, any wavering from a business plan or increases in planned budgets can issue a death blow to a company’s long-term positioning.
To review, MINDCURE is represented in our index with the following corporate description.
Mind Cure is a mental health and wellness company with a mission to identify, develop and commercialize products that ease suffering, increase productivity, and enhance mental health. It is the therapeutic potential of nootropics, psychoactive products, and psychedelic substances to treat the profound distress of a world suffering from a mental health crisis that led to the formation of Mind Cure. Mind Cure’s initial products are a branded line of organic mushroom nootropics. –PsychedelicInvest.com
Psychedelic Invest’s very own Adam Tubero put together the video below to overview this news.