Braxia Scientific Corp. Announces Financial Results and Strategic Review

LOS ANGELES- Braxia Scientific Corp, a medical research company known for its innovative ketamine and psilocybin treatments for depression and related disorders, has recently disclosed its financial statements and management discussion for the first half of fiscal year 2024. The detailed documents, including a comprehensive analysis, are available on the System for Electronic Document Analysis and Retrieval (SEDAR+)

Financial and Operational Highlights

• Strong Revenue Growth: The company reported a 30.5% increase in revenue, reaching $0.594 million for the quarter ending September 30, 2023, and a 36.8% increase to $1.19 million for the six-month period.
• Reduced Net Loss: Braxia Scientific experienced a notable decrease in net loss, recording $0.275 million for the quarter and $1.08 million for the six months ended September 30, 2023, compared to the previous year’s figures.
• Financial Position: As of September 30, 2023, the company’s cash and cash equivalents stood at $0.701 million, with a working capital deficit of $0.961 million.

Dr. Roger McIntyre, CEO of Braxia Scientific, emphasized the increased demand for the company’s specialized mental health treatments, leading to robust revenue growth. He also highlighted efforts in reducing expenses and improving efficiencies, alongside plans to introduce novel therapies and support services.

Corporate Updates and Strategic Review

• Strategic Alternatives Review: The Board has initiated a process to explore strategic alternatives and potential partnerships, given the challenges in the current economic environment and the difficulty in accessing public market capital. Options under consideration include restructuring, cost reduction, and possibly scaling back clinic locations if additional funding isn’t secured.
• Board and Executive Changes: The company announced the resignation of Olga Cwiek from the Board of Directors, effective November 28, 2023. Peter Rizakos, Chief Legal Officer, has been appointed to the Board and named Chief Financial Officer following Stephen Brooks’ departure.

Braxia Scientific continues to make strides in revenue generation and cost reduction, while prioritizing capital preservation. The strategic review process, prompted by multiple inquiries, will consider various options, including a sale, merger, business combination, or significant transaction, to maximize shareholder value.