MINDCURE Provides Update on Strategic Review
Announces Executive and Employee Reductions and Cost Saving Measures
Mind Cure Health Inc. (CNSX:MCUR) (OTCMKTS:MCURF), announced today that a special committee of the Company’s board of directors (the “Special Committee”) has concluded the initial phases of its previously announced strategic review process (the “Strategic Review Process”).
The Special Committee completed an extensive canvas of various strategic alternatives available to the Company, and determined that the additional capital required to execute the Company’s business plan is unlikely to be found under the current and foreseeable market conditions and that none of the strategic alternatives available to the Company necessitated ongoing developmental expenditures. Accordingly, the Board has taken the decision to immediately eliminate all expenditures outside those required to preserve the value of the Company’s assets, including its public company status with Canadian securities regulators and cash and cash equivalents of approximately $10.57 million on an unaudited basis as at close of business yesterday and without adjusting for any current liabilities as at such date or arising from the elimination of expenditures described in this news release.
Canaccord Genuity Corp. is acting as the Special Committee’s financial advisor in connection with the Strategic Review Process.
“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.
Effective immediately, the Company will initiate a Company-wide workforce reduction with respect to all of its C-suite executives and employees, other than its Chief Financial Officer, Vice President of Engineering and certain administrative staff required to wind-down the Company’s operations and for limited care and maintenance of the Company; and halt all non-committed expenditures related to the development and marketing work of its iSTRYMTM product, the research and development related to its synthetic ibogaine program, and the research and development related to its Desire Project. Mr. Philip Tapley, the Chair of the Company’s board of directors, will assume the role of the Company’s interim CEO.
While we truly appreciate the impact of these changes on our team and our suppliers, our Strategic Review Process has led us to believe that the actions announced in this news release are necessary to preserve cash position and maintain value of the Company’s other assets while the Company continues to seek a strategic transaction. Also, on behalf of the Board, I would like to thank Kelsey Ramsden for her dedicated service to the Company which began shortly after the Company went public in 2020. We are grateful to Kelsey for her strong leadership on behalf of all stakeholders.Chair of MINDCURE’s Board of Directors and Interim CEO, Philip Tapley
Other than as described in this news release, the Company has not made any decisions related to strategic alternatives at this time and there can be no assurance that the evaluation of strategic alternatives will result in any transaction proceeding or change in strategy. The Company does not intend to comment further unless and until further disclosure is appropriate or necessary.
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