Mydecine Reports Financial Results for the Second Quarter of Fiscal Year 2022

DENVER, Aug. 15, 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 for the six months ended June 30, 2022. Financial Results for the Six Months Ended June 30, 2022 Net Loss: The net loss attributable to common stockholders was $8.09 million, from operations, or a basic and diluted loss per share of $(1.31). For the same period in 2021, loss from operations was $13.53 million, or a basic and diluted loss per share attributable to common stockholders of ($3.04) and which included a $4.2 million impairment charge and a loss of $103,285 from discontinued operations, Cash Position: The Company had $324,146 in cash and cash equivalents as of June 30, 2022. CONDENSED INTERIM CONSOLIDATED STATEMENTS OF LOSS AND COMPREHENSIVE LOSS    – UNAUDITED.           Three-months ended June 30, Six-months endedJune 30,  Note2022  2021 (Restated)  2022  2021 (Restated)   $  $  $  $          Sales –  –  –  – Cost of goods sold –  –  –  – Gross margin –  –  –  –          Expenses        Finance cost 6,7238,464  27,960  459,663  123,697 Corporate development 13,594  428,203  141,474  2,427,138 Depreciation and amortization 5,834,301  37,663  94,573  79,195 Consulting fees 703,895  1,193,840  2,127,768  2,217,495 Director and management fees12120,284  341,632  230,856  832,508 Foreign exchange loss (gain) (53,964) 97,293  (25,776) 319,668 Insurance 289,529  153,223  548,874  153,223 Office and miscellaneous 22,541  (115,467) 240,523  220,899 Professional fees 385,479  697,414  992,633  1,350,469 Regulatory filing fee –  12,276  –  177,912 Research and development 652,486  1,091,920  1,702,011  1,322,130 Property taxes –  –  –  – Salaries12 737,196  234,331  1,375,242  234,331 Share-based payments –  –  –  – Total expenses 3,143,805  4,454,160  7,887,841  9,458,665          Other income (expenses)        Change in fair value of derivative liabilities9 631,760  249,549  (261,690) 221.893 Impairment of investment in associate –  (4,169,616) –  (4,169,616)Consideration paid in excess of identifiable assets –  –  –  – Rental income –  32,310  –  32,307 Gain (loss) on settlement of debt –  –  –  (2,319)Total other income (expenses) 631,760  3,887,757  261,690  (3,917,735)         Loss from continuing operations (2,512,045) (8,341,947) (8,149,531) (13,376,400)         Loss from discontinued operations1-  18,788  –  (103,285)         Foreign currency translation adjustment 61,561  (24,830) 61,561  (48,628)         Net loss and comprehensive loss for the period (2,450,484) (8,347,989) (8,087,970) (13,528,313)         Net loss per share – Basic and diluted from continuing operations (0.35) (1.75) (1.31) (3.04)Weighted average number of shares outstanding – Basic and diluted 7,142,532  4,744,805  6,217,942  4,440,487  CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION    – UNAUDITED. As at,NoteJune 30, 2022$ December 31, 2021(Audited)$ Current assets   Cash 324,146 1,495,311 Rent and other receivable – 3,856 Inventory – – Sales tax receivable 257,338 201,000 Prepaids and deposits43,742,147 3,521,125 Total current assets 4,323,632 5,221,352 Non-current assets   Prepaids and deposits41,504,484 1,793,894 Right-of-use asset8- 130,546 Property and equipment, net5362,815 434,910 Total assets 6,190,930 7,580,702 Current liabilities   Accounts payable and accrued liabilities 3.252,719 1,587,238 Notes payable787,916  – Derivative liabilities979,660 1,280,294 Lease liability – current portion8- 79,728 Total current liabilities 3,420,295 2,947,260 Non-current liabilities   Convertible debentures, net64,797,009 4,354,302 Long-term portion of lease liability8- 67,821 Total liabilities 8,217,304 7,369,383 Shareholders’ equity    Share capital10113,908,425 107,662,388 Contributed surplus1016,994,081 17,288,315 Equity portion of convertible debentures10175,756 175,756 Accumulated other comprehensive loss 61,561 – Deficit (133,166,197)(124,915.140)Total shareholders’ equity  (2,026,374)211,319 Total liabilities and shareholders’ equity  6,190,930 7,580,702  For more information, please review the Company’s filed financial statements and management discussion on the SEDAR site. 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 ContactDamon Michaels, Chief Operating Officer [email protected] Investor RelationsDamon Michaels, Chief Operating Officer [email protected] 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.