- Numinus Wellness Inc. (TSXV:NUMI)
Numinus Wellness Inc. (TSXV:NUMI) is set to acquire the Neurology Centre of Toronto (NCT) and expand the centre into a clinical neurology treatment centre, the company announced on Tuesday, July 6.
Numinus is a provider of integrated health services and is finding ways to cure mental health issues through psychedelic compounds like psilocybin and MDMA.
The Vancouver-based healthcare company has cracked a cash-and-stock deal in which it will pay C$300,000 in cash and C$200,000 in NUMI shares to complete the transaction in future. The agreement will be subjected to several conditions, including approval from the TSX Venture Exchange.
Why is the deal significant for Numinus Wellness (TSXV:NUMI)?
Numinus’ deal with NCT is important because the centre is a fully operational facility with 13 doctors, eight allied health staff and numerous nurse practitioners. The Neurology Centre also recorded gross revenues of C$ 1 million, reflecting an increase of 25 per cent year-over-year (YoY) for the period ended December 31, 2020.
In the same period, the net revenue expanded to C$ 454,000, up by 25 per cent year-over-year (YoY).
Once the acquisition is completed, Numinus plans to establish the first centre for psychedelic neurology in the country. It plans to use this centre for understanding how psychedelic compounds can have a positive impact on patients with neurological disorders and addiction issues.
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Should you invest in the NUMI stock?
The global psychedelics industry seems to be the next big thing as the importance of mental health has gained prominence over the last few years. This industry is evolving and a report from a data firm called Data Bridge Market Research suggests that the psychedelic drugs sector is forecasted to grow at a compound annual growth rate (CAGR) of 12.36 per cent by 2027.
Numinus' deal will probably help the company to increase its presence in Canada and then maybe across North America. Dr Evan Lewis, who is famous for advancing the use of medical cannabis will join Numinus Wellness as Vice-President after the acquisition and his expertise could be used to boost the company's growth rate.
NUMI share prices immediately jumped 2.3 per cent after the trading session began on July 6. The surge came after a constant dip as the NUMI stock had dipped 6.4 per cent in the past week.
NUMI stock returned 112 per cent to the shareholders in the last 12 months and it seems that the stock prices may climb further up this year. It was trading at C$ 0.9 apiece at 9:35 AM EDT.