On this special yearend Trade To Black Podcast, TDR Founder Shadd Dales spoke with Payton Nyquvest, CEO of Numinus Wellness Inc. (TSE: NUMI) (OTCMKTS: NUMIF), who engaged investor questions derived from various social media platforms. With decidedly bleak sentiment dominating the psychedelic sector at-large, Payton addressed various points of interest pertaining to the company’s burn rate and balance sheet positioning, Numinus’ plan to reduce OpEx expenses, the promise for new psychedelic-assisted therapy applications in 2023, and more.
Of particular interest was Numinus’ elevated burn rate, exacerbated by the recent acquisition of Novamind Inc. in June. While the consolidation expanded the company’s North American footprint and boosted assisted-therapy growth rates, costs pertaining to the acquisition augmented Numinus’ cash burn at a time where capital preservation is at a premium.
Ever mindful of the company treasury and cap table, Payton explained that cost control is foremost on the company agenda, and that the company is taking active measures towards reducing operating expenses to a manageable level:
The number one objective of the company since we closed the Novamind acquisition is profitability, and greatly reducing the burn rate. The burn rate of that last reported quarter was high due to the Novamind acquisition and just the costs associated with that. You know, people have done the math—we worked very, very hard to get the burn rate down to a million a month. And we’re extremely close to that. And hopefully, we can continue to improve upon that. But it’s been—to stretch out the cash as far as humanly possible while improving the margins. And, you’ll see that over the next couple of quarters.
Pertaining to Numinus’ Canadian assisted-therapy operations, Payton explains that growth decrease domestically in the fiscal fourth quarter was primarily due to a realigned towards higher-margin outpatient services.
Payton also gets granular about how Numinus is positioned to capitalize on MDMA assisted-therapy services, which he expects could be approved by the FDA next year. The company is developing valuable assisted-therapy and practitioner training protocols derived from the implementation of a multi-site open-label extension study of MDMA assisted psychotherapy for PTSD sponsored by the Multidisciplinary Association for Psychedelic Studies (MAPS).
Once approved, Payton expects these medical insurance-eligible treatments could yield significant revenue-generating possibilities, as MDMA assisted-therapy will have to be dispensed by licensed practitioners.
Click on the embedded link to view more of our newest interview with Numinus Wellness CEO, Payton, Nyquvest, in his own words.