Mydecine Reports Financial Results for the Fiscal Year 2021 and Provides a Business Update

MYCO-001 Smoking Cessation Clinical Trial Moves Forward Following Conditional IRB Approval Company Advances IP Portfolio With New Patent Applications Covering Novel Molecule Families DENVER, March 31, 2022 (GLOBE NEWSWIRE) — Mydecine Innovations Group (NEO: MYCO) (OTC: MYCOF) (FSE: 0NFA) (“Mydecine” or the “Company”), a biotechnology company aiming to transform the treatment of mental health and addiction disorders, today reported financial results and provided a business update for the fiscal year ended December 31, 2021. “Last year, Mydecine made significant strides toward creating and commercializing new treatments for mental health and addiction disorders,” said CEO Josh Bartch. “The conditional IRB approval we received is yet another positive signal that we will continue to advance our Phase 2b smoking cessation study, and we will hopefully receive full FDA IND approval in the second quarter of this year. We have been working hard to reduce our expenses and increase our efficiencies to continue progressing our clinical trials and expand our IP portfolio. I’d like to personally thank our shareholders, board members and highly dedicated team for enabling Mydecine to reach these significant milestones, and we look forward to another successful year.” “In addition to our clinical trials, our research and development team has been making significant progress in our drug development program,” said Chief Scientific Officer Rob Roscow. “Over the last year, our new chemical entity (NCE) program has produced multiple patents covering several second-generation novel molecules that we believe will offer significant improvements over classic psilocybin and MDMA. We’re using a modular development approach to our patent strategy, which gives us the flexibility to license, partner or develop our lead drug candidates from our multiple families of NCEs, all wholly owned by Mydecine.”Highlights of the Business for the Full Year 2021 Clinical Research Progressed Phase 2b smoking cessation study following a positive meeting with the Food and Drug Administration (FDA) to review Mydecine’s Investigational New Drug (IND) application. In Q2 2022, the company plans to file an IND and breakthrough status application and will begin patient recruitment upon receipt of FDA approval. The multi-site study’s lead investigator will be Johns Hopkins University. Agreed to supply MYCO-001 for Dr. Matthew Johnson’s multi-site NIDA grant-funded smoking cessation study. Johns Hopkins University, New York University, and the University of Alabama in Birmingham are the investigative sites conducting the research. The results from this study will support the safety profile of MYCO-001. Signed a five-year Master Collaboration Research Agreement with Johns Hopkins University School of Medicine, demonstrating the Company’s commitment to advancing psychedelic medicine by exploring multiple molecules and drugs for various indications. Drug Development Filed several provisional and full patent applications for novel molecules that outperform first-generation compounds in safety, efficacy, stability, dosing and side effects. This year, the Company intends to file a number of new composition of matter patents supporting its NCE program. Patent applications include: novel MDMA analogs, improved psilocybin and other tryptamines (including a shorter duration with patch delivery), potentially heart-safe microdosing drugs, nanoemulsion technology, and technology patents covering the digital healthcare platform Mindleap. Unveiled an Artificial Intelligence (AI) drug discovery program that enables rapid screening of billions of compounds and will encourage near-term patent filings for novel molecules. Completed a 5-HT2A serotonin receptor model for Mydecine’s AI program with the intention to build the entire family of serotonin receptors to test its novel molecules against. Screened over 25 mushroom species, including various varieties of p. cubensis, and discovered and analyzed more than 40 unique compounds, with the majority appearing to be previously unreported. Corporate Welcomed several new independent board members, including Gordon Neal, Josephine Wu, Dr. Saeid Babaei and Dr. Victoria Hale, who bring a wealth of experience in drug development, clinical trials and technology. The additions assist Mydecine in meeting anticipated capital markets initiatives for 2022. Listed on the NEO exchange and submitted an application to list on the NASDAQ. Completed the first international export of psilocybin mushrooms. Announced that Mydecine’s exclusive dealer was identified as a licensed psilocybin and MDMA supplier in Canada, allowing them to supply active pharmaceutical ingredients through Health Canada’s Special Access Program, which enables healthcare providers to request specific drugs for patients who have not responded well to other treatments. Successfully spun out the Company’s legacy cannabis assets to help satisfy certain requirements for a potential future uplisting. Financial Results for the Fiscal Year 2021 Net Loss: The net loss attributable to common stockholders was $28.9 million, which consisted of $5.3 million loss from discontinued operations, for the fiscal year ended December 31, 2021, or a basic and diluted loss per share attributable to common stockholders of ($0.12). This is compared to a net loss attributable to common stockholders of $26.9 million, which consisted of $0.1 million loss from discontinued operations, for the fiscal year ended December 31, 2020, or a basic and diluted loss per share attributable to common stockholders of ($0.24). Cash Position: The Company had $1.5 million in cash and cash equivalents as of December 31, 2021. Subsequent to the year end, the Company secured additional funding and is moving forward with clinical trials and projects to expand its IP portfolio. MYDECINE INNOVATIONS GROUP INC.CONSOLIDATED STATEMENTS OF FINANCIAL POSITION(EXPRESSED IN CANADIAN DOLLARS) As at, December 31, 2021$ December 31, 2020 $ Current assets   Cash 1,495,311 2,190,702 Accounts receivable 3,856 27,746 Inventory – 47,262 Sales tax receivable 201,060 13,734 Prepaids and deposits 3,521,125 216,003 Total current assets 5,221,352 2,495,447 Non-current assets   Prepaids and deposits 1,793,894 – Investment in joint venture – 303,982 Loan receivable, net – 316,110 Investment in associate – 4,481,988 Right-of-use asset 130,546 223,645 Investment properties – 1,418,345 Property and equipment 434,910 291,614 Total assets 7,580,702 9,531,131 Current liabilities   Accounts payable and accrued liabilities 1,587,238 1,187,486 Convertible debentures, net – 2,959,755 Derivative liabilities 1,280,294 1,586,744 Lease liability – current portion 79,728 69,329 Total current liabilities 2,369,383 5,803,314 Non-current liabilities   Convertible debentures, net 4,354,302 – Lease liability 67,821 167,118 Total liabilities 7,369,383 5,970,432 Shareholders’ equity    Share capital 107,349,388 85,298,435 Contributed surplus 17,536,315 12,734,636 Equity portion of convertible debentures 240,756 254,690 Accumulated other comprehensive loss – (444,803)Deficit (124,915,140)(94,282,259)Total shareholders’ equity  211,319 3,560,699 Total liabilities and shareholders’ equity  7,580,702 9,531,131  MYDECINE INNOVATIONS GROUP INC.CONSOLIDATED STATEMENTS OF LOSS AND COMPREHENSIVE LOSS(EXPRESSED IN CANADIAN DOLLARS)   For the years ended,  December 31,2021 December 31,2020     Sales 7,493 2,617 Cost of goods sold – – Gross margin 7,493 2,617     Expenses   Finance cost 205,267 182,866 Corporate development 3,401,645 2,259,956 Depreciation 235,177 57,080 Consulting fees 5,220,556 3,381,726 Director and management fees 1,346,468 539,347 Foreign exchange loss 355,671 111,251 Insurance 511,501 – Office and miscellaneous 925,568 292,070 Professional fees 2,216,950 934,135 Regulatory and filing fees 349,777 201,818 Research and development 3,960,232 1,290,548 Salaries 1,424,012 17,584 Share-based payments 3,099,743 2,487,509 Total expenses 23,252,567 11,755,890     Other income (expenses)   Change in fair value of derivative liabilities 43,688 545,194 Consideration paid in excess of net assets acquired from acquisition – (10,645,239)Impairment of goodwill and intangible assets – (5,031,967)Impairment of loan receivable (382,902)- Other expenses – (24,025)Gain on settlement of debt 1,377 33,304 Total other income (expenses) (337,837)(15,122,733)    Loss from continuing operations (23,582,911)(26,876,006)     Loss from discontinued operations (5,314,488)(72,939)    Net loss for the year (28,897,399)(26,948,945)    Foreign currency translation adjustment – (382)    Net loss and comprehensive loss for the year (28,897,399)(26,949,327)    Net loss per share – Basic and diluted from continuing operations (0.12)(0.24)Weighted average number of shares outstanding – Basic and diluted 234,086,043 113,714,260      About Mydecine Innovations Group Mydecine Innovations Group™ (NEO:MYCO) (OTC:MYCOF) (FSE:0NFA) is a biotechnology company developing innovative first- and-second-generation novel therapeutics for the treatment of mental health and addiction using world-class technology and drug development infrastructure. Mydecine was founded in 2020 to address a significant unmet need and lack of innovation in the mental health and therapeutic treatment environments. Our global team is dedicated to efficiently developing new therapeutics to treat PTSD, depression, anxiety, addiction and other mental health disorders. The Mydecine business model combines clinical trials and data outcome, technology, and scientific and regulatory expertise with a focus on psychedelic therapy, as well as other novel, non-psychedelic molecules with therapeutic potential. By collaborating with some of the world’s foremost authorities, Mydecine aims to responsibly fast-track the development of new medicines to provide patients suffering from mental health disorders with safe and more effective treatment options. Mydecine Innovations Group is headquartered in Denver, Colorado, USA, with international offices in Leiden, Netherlands. Learn more at: https://www.mydecine.com and follow us on Twitter, LinkedIn, YouTube and Instagram.  For more information, please contact:Media ContactMorgan Kervitsky, Director of [email protected] Investor RelationsMorgan Kervitsky, Director of [email protected] On behalf of the Board of Directors:Joshua Bartch, Chief Executive [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.