Company Taking Strategic Actions to Prioritize Clinic Expansion, Enhance Operational
Effectiveness and Right Size Cost Structure.
TORONTO, ONTARIO Monday June 12, 2023 – Braxia Scientific Corp. (“Braxia”, or the
“Company”), (CSE: BRAX) (OTC: BRAXF) (FWB: 4960), a medical research company with mental
health clinics providing innovative ketamine and psilocybin treatments for depression and related
disorders, is pleased to report treatment volumes across its clinics increased 26.2% to 3,516 from
2,785 treatments on a year-over-year basis in Fiscal 2023. The Company continues to experience
increased demand across all of it 5 clinics. At its new Ottawa clinic, treatment volumes increased
87.2% to 571 from 305 treatments on a year-over-year basis following the completion of construction
and opening of its expanded purpose-built clinic in late 2022. Additionally, its Kitchener-Waterloo
clinic, opened in mid-2022, continues to see rapid increases in treatment volume, reaching 214
treatments in its first 8 months of operation.
“Over the last few years, Braxia has built a tremendous patient base and reputation for providing
innovative, life-saving treatments for people suffering from major depressive disorder, among other
mental health conditions. We have seen record levels of referrals which we expect to continue and
convert to treatments as we realign and refocus resources to our clinics,” said Dr. Roger McIntyre,
CEO, Braxia Scientific.
The Company also reported its current clinic volumes continued to trend up over the last four months
through May 2023, with total average monthly treatments up to 307 treatments per month compared
with 293 for fiscal 2023. Clinic treatment volumes continue to trend upwards despite executing very
little marketing. In the near term, the Company expects to continue to increase its volumes by
ramping up direct marketing efforts and improving efficiency with additional capacity planned to
come online in September 2023.
Dr. McIntyre added, “To date, patient acquisition growth has largely been driven by our medical
team’s reputation, relationships and educational programs with primary care physicians and other
healthcare providers within the communities we serve versus direct marketing efforts. Looking
ahead, we are extremely well positioned to rapidly grow volumes and revenues by expanding our
flagship clinic in the Greater Toronto Area, which remains a highly underserved market, and
expanding in other major urban centres.”
Cost Improvements
Additionally, the Company announced it is taking strategic actions as part of a restructuring plan that
prioritizes the growth of its brick-and-mortar clinics while also reducing and rightsizing its cost
structure including the slowdown of its US based telemedicine business, KetaMD, Inc. (KetaMD).
The restructuring plan includes a reorganization of its clinic operations, a reduction in certain
management positions, and voluntary salary reductions to preserve cash as it works through
challenging market conditions and recent potential regulatory changes with respect to virtual at
home treatments. As part of the restructuring plan, the Braxia senior management team, including
Dr. McIntyre, has voluntarily agreed to reduce cash compensation by an aggregate of $113,000 per
month.
“We embarked on an ambitious plan to quickly expand and bring our expertise across North America
to reach millions more in need. However, in the last few months we’ve seen our environment
significantly change and as a result we must focus on refining our strategy and potential other
structural changes to take us through to the next phase of accelerated growth of our clinics and
better execute our strategy.”
Update on KetaMD
The Company is reviewing the request for comment and recent announcement by the Drug
Enforcement Administration’s (DEA) of a proposed policy which will limit the supply to patients of
certain controlled medications, including ketamine, to 30 days without an in-person or in-clinic
assessment. The rule changes could require KetaMD to either own or have an association with
physical clinics to build out its business. While the DEA recently extended the COVID -19 health
emergency flexibilities that permitted the remote prescribing of controlled substances until November
11, 2023, it is unclear what happens after this temporary rule expires. While the Company reviews
the proposed policy changes, Braxia management is also taking steps to review its longer-term US
strategy and planned rollout. During its strategy review, Braxia has slowed down the ramp up of
KetaMD to reduce costs and preserve capital. The Company is also focused on searching for
strategic partners and additional capital to rollout and offer this technology platform to over 600
hundred Ketamine clinics operating in the US today, of which the large majority currently do not
HIPPA compliant virtual capabilities provided by KetaMD.
Also, as part of its strategy review, Warren Gumpel, has stepped down as CEO of KetaMD, but will
remain as a special advisor to KetaMD as Dr. McIntyre assumes the roll of KetaMD CEO.
KetaMD will still be taking treatment requests but will not be conducting any new patient treatments
at this time.
Dr McIntyre said: “We remain committed to the use of telemedicine to reach patients with treatmentresistant depression and believe KetaMD has the right technology and model to do this. While the
telemedicine environment may become more challenging, we are seeking to identify the right
partners to assist us in further developing this business quickly. We are hopeful to continue to build
this business.”
The Company also announced it has entered into an investor relations agreement with Apollo
Shareholder Relations Ltd. (“Apollo”) to provide investor relations services. The investor relations
agreement provides for a fee of $42,750 CAD for an initial three-month term, continuing on a
monthly basis thereafter. Either party may terminate the agreement by providing 30 days’ written
notice. Apollo provides investor communications and is based out of Victoria, British Columbia which
provides email marketing, investor outreach, content creation and live events. Apollo is owned by
several principals based in Victoria, Vancouver and Toronto. To the knowledge of the Company, and
at the time of entry into the agreement, no principal of Apollo held any securities in the Company.
Both Apollo and its principals are arm’s length to the Company.
About Braxia Scientific Corp.
Braxia is a medical research and telemedicine company with clinics that provide innovative ketamine
treatments for persons with depression and related disorders. Braxia also launched its U.S. based
end-to-end telemedicine platform KetaMD, that utilizes leading technology to provide access to safe,
affordable, and potentially life-changing at-home ketamine treatments for people living with
depression and related mental health conditions. Through its medical solutions, Braxia aims to
reduce the illness burden of brain-based disorders, such as major depressive disorder among
others. Braxia is primarily focused on (i) owning and operating multidisciplinary clinics, providing
treatments in-person and virtually for mental health disorders, and (ii) research activities related to
discovering and commercializing novel drugs and delivery methods. Braxia seeks to develop
ketamine and derivatives and other psychedelic products from its IP development platform. Through
its wholly owned subsidiary the Canadian Rapid Treatment Center of Excellence Inc., carrying on
business as Braxia Health, the Company operates multidisciplinary community-based clinics offering
rapid-acting treatments for depression located in Mississauga, Toronto, Kitchener-Waterloo, Ottawa,
and Montreal.
FOR FURTHER INFORMATION PLEASE CONTACT:
Braxia Scientific Corp.
Tel: 416-762-2138
Email: [email protected]
Website: www.braxiascientific.com
The CSE has not reviewed and does not accept responsibility for the accuracy or adequacy of this
release.
Forward-looking Information Cautionary Statement
This news release contains forward-looking statements within the meaning of applicable securities
laws. All statements that are not historical facts, future estimates, plans, programs, forecasts,
projections, objectives, assumptions, expectations, or beliefs of future performance are “forwardlooking statements.”
Forward-looking statements include statements about the intended promise of ketamine-based
treatments for depression, the potential for ketamine or other psychedelics to treat other mental health
conditions, the ability of telemedicine to address the unmet need for mental health disorders or expand
or accelerate the growth of Braxia, the Company’s strategy of developing its clinical operations in
Canada while building out its strategic and highly scalable telemedicine business with KetaMD, Inc. in
the United States and the build out of Company’s CRO business of providing capabilities and research
services to pharmaceutical companies. Such forward- looking statements involve known and unknown
risks, uncertainties and other factors that may cause actual results, events, or developments to be
materially different from any future results, events or developments expressed or implied by such
forward-looking statements. Such risks and uncertainties include, among others, the failure of
ketamine, psilocybin and other psychedelics to provide the expected health benefits and unanticipated
side effects, dependence on obtaining and maintaining regulatory approvals, including acquiring and
renewing federal, provincial, municipal, local or other licenses and engaging in activities that could be
later determined to be illegal under domestic or international laws. Ketamine and psilocybin are
currently Schedule I and Schedule III controlled substances, respectively, under the Controlled Drugs
and Substances Act, S.C. 1996, c. 19 (the “CDSA”) and it is a criminal offence to possess such
substances under the CDSA without a prescription or a legal exemption. Health Canada has not
approved psilocybin as a drug for any indication, however ketamine is a legally permissible medication
for the treatment of certain psychological conditions. It is illegal to possess such substances in Canada
without a prescription.
These factors should be considered carefully, and readers are cautioned not to place undue reliance on
such forward-looking statements.
Although the Company has attempted to identify important risk factors that could cause actual
actions, events or results to differ materially from those described in forward-looking statements,
there may be other risk factors that cause actions, events or results to differ from those anticipated,
estimated or intended. Additional information identifying risks and uncertainties that could affect
financial results is contained in the Company’s filings with Canadian securities regulators, including
the Amended and Restated Listing Statement dated April 15, 2021 and its most recent MD&A, which
are available at www.sedar.com. There can be no assurance that forward-looking statements will
prove to be accurate, as actual results and future events could differ materially from those
anticipated in forward-looking statements.