- Psychedelics company Novamind recently announced that it raised 10 million Canadian dollars in a private placement. The company is preparing to go public on the Canadian Securities Exchange (CSE) this month.
- Novamind offers ketamine clinics and psychedelics retreats, and works on drug development.
- Novamind CEO and cofounder Yaron Conforti told Business Insider that the company is focused on building out an infrastructure that offers a "spectrum of services."
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As the psychedelics industry grows, companies are attempting to position themselves as leaders of different verticals within the space.
Some are focusing on drug development for regulatory approval, while others are choosing to build out networks of clinics that will be able to deliver those medications to patients. Still others are attaining licenses to import and distribute substances while a handful are running "psychedelics retreats" in jurisdictions where such programs are legal.
Novamind, a Toronto-based company with operations in the US and Europe, is trying to do a little bit everything.
The company is focused on building out an infrastructure that offers a "spectrum of services," Novamind CEO and cofounder Yaron Conforti told Business Insider. Novamind currently has clinics in Utah that are set up to administer ketamine-based treatments to patients for mental health conditions. The company also says it oversees research to help develop new psychedelic medicines and runs psilocybin retreats in Europe and South America.
Read more: See the pitch deck a psychedelics startup just used to raise $18.6 million to develop new treatments derived from the Sonoran Desert toad
Novamind is the latest psychedelics startup looking to list publicly on a Canadian exchange. The company follows in the footsteps of at least a dozen others that have listed publicly in the past few months.
Most companies have gone public on Canadian exchanges like the Canadian Securities Exchange (CSE). Compass Pathways, the only psychedelics company to list on the NASDAQ, went public in September and currently has a market value of more than $1.7 billion. Compass is developing psilocybin-based medications to treat mental health illnesses.
Read more: Oregon made history by becoming the first state to legalize a therapeutic psilocybin program, but psychedelics companies like ATAI and MindMed say they don't plan to jump in anytime soon
Oregon recently became the first state to legalize a regulated psilocybin program, but Novamind's CEO Yaron Conforti told Business Insider that the company is currently focused on first expanding its operations in Utah, where it already has clinics and research operations.
Read more: A major psychedelics company just landed a record sum of cash from VCs. The CEO told us how he raised the mega-round and why it's a sign psychedelics are going mainstream.
Conforti said the expansion of Novamind's clinics will be focused on North America first and added that the company is in "active discussions" in Oregon as well as a few other states.
Novamind recently raised 10 million Canadian dollars ($7.8 million) in a private placement in preparation to go public. In total, the company says it's raised around C$15 million.
Reid Robinson, Novamind's chief medical officer, said that the company is setting up the groundwork for when psychedelic medications will be regulated and more widely available.
Read more: Investors are pouring millions into startups that are developing magic mushrooms as medications for conditions like depression and PTSD
Pointing to different offerings Novamind provides — from its clinics to retreats to trials — Conforti added that "treating people today is different than proposing to establish infrastructure for the future."
In other words, while Novamind is focused on positioning itself for more widely available psychedelic medications down the line, it is also taking steps to ensure that its business model makes sense today, that its current patients have access to the treatments that are available today.
"The expectation is when MDMA is legalized, when psilocybin is a legal prescription, we will have the infrastructure to bring those treatments online, but until then, until we can operate in legal jurisdictions with those compounds, we'll provide the spectrum of services and keep waiting it towards waiting," he continued.
Take a look at Novamind's pitch deck below:
Novamind says it's close to going public through a reverse takeover on the Canadian Securities Exchange.
The company will trade under the ticker symbol NM.
Novamind currently has operations in North America, Europe, and South America.
The company says it's preparing to support a regulated psychedelics industry in the future.
Currently, it's focused on ketamine treatments in the US and psychedelics retreats in the Netherlands and Costa Rica. It also participates in research on psychedelics-based treatments.
This map shows the company's operations in the Netherlands, Costa Rica, Utah, and Toronto.
This slide outlines the changing attitudes and policies surrounding substances like MDMA, psilocybin, and LSD throughout history.
Novamind says "a mental healthcare revolution has begun," and emphasizes the changing policies and scientific discoveries related to psychedelics.
Patients in the US spend billions on mental health services every year. This slide implies that medications like ketamine, Spravato, MDMA, and psilocybin have the potential to disrupt the multi-billion-dollar market.
Novamind's clinics, based in Utah, administer ketamine-based treatments to patients with mental health illnesses.
Novamind says Cedar Clinical Research, Novamind's research arm, has experience with research studies around psychedelic substances. This slide outlines Cedar's involvement in trials in collaboration with Janssen Pharmaceuticals and MAPS.
EF-KAP, or emotion-focused ketamine-assisted psychotherapy, targets "emotion processing," according to the company, which is investigating the method to treat anorexia nervosa and major depressive disorder.
Cedar has been involved in various research collaborations, including with leading research groups like MAPS and Imperial College.
Novamind will have psychedelic retreat programs in Costa Rica (which is not yet active) and the Netherlands (active since 2018). Psychedelic retreats are currently not legal in the US.
A look at the company's executive team, which includes CEO Yaron Conforti, who has a background in investment and banking, and CMO Reid Robinson, who was coordinating investor for MAPS' study of MDMA targeting eating disorders.
Novamind's scientific advisory board includes individuals from Yale University School of Medicine and Columbia University Medical Center/New York-Presbyterian Hospital.
The company's board of directors includes Canadian cannabis giant Canopy Growth's founder Chuck Rifici among other names.
A look at who Novamind considers to be competitors in the space. The list includes companies building out networks of clinics as well as those developing drugs for regulatory approval.
The company's four values include compassion, innovation, stewardship, and respect, according to this slide.
The last slide of Novamind's pitch deck.
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