HI there,
This looks like a reverse-takeover taking place on the Canadian Stock Exchange. I'll be completely honest here - these types of reverse takeovers don't do very well. In fact, Hinterland tried and failed before landing on Novamind. Likewise, they are usually structured to benefit current owners in a big way after which point they sell out after listing. Of note Novamind issued a private placement at $0.10 per share in conjunction with the announcement back in July - this is an example of this.
It also looks to be one that is taking advantage of the rise in popularity of psychedelics and alternative health. Novamind is a new company itself having only been incorporated in 2019. It has made a couple of acquisitions (Cedar Clinical Research and Cedar Psychiatry) and has made some investments in other psychedelic companies. At the very least, the Cedar Psychiatry acquisition provide the company a revenue stream - something very few of the psychedelic companies have at the moment. It has 5 clinics in Utah and in the 3 months ended September 2020, it generated 873K in revenue. If it maintains that pace, it is looking at a forward revenue run rate of ~$3.5M. There is however, no information on as to whether or not revenue is seasonal, growing, etc. Cedar generated 1.277M through the six months ended June, so it does look like its growing, but very difficult to tell based on how these statements are laid out .
Moving forward, it is looking to open or acquire more mental health clinics in North America to go along with the participation in clinical trials for psychedelic medicine.
Overall, I like the company's dual approach clinic + research. It remains however, a very risky play and as mentioned previously, I am not a fan of these types of RTOs as they are subject to manipulation - especially those listed on the CSE. It would not surprise me to see this jump on the first day of trading given the interest in psychedelics just be prepared for considerable volatility.
Mat