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1 week ago
7 The restatement is the result of the sale of shares and warrants tied to the divestment of its subsidiary, MindLeap.
Mydecine Innovations Group Inc. (CSE: MYCO) (FSE: 0NF0) (OTC: MYCOF) will restate its previously filed audited financial statements for the fiscal year ended Dec. 31, 2022. Mydecine said the changed financials would result in a lower cash position and increased debts and expenses.
Mydecine also said it applied to the British Columbia Securities Commission for a temporary management cease trade order in connection with its filing of audited financial statements and the management discussion and analysis for 2023.
During 2022, the company received 18 million units of PanGenomic Health Inc. with the sale of its wholly owned subsidiary, Mindleap Health Inc. The company then sold 15,250,000 PanGenomic common shares at C$0.117 per share in January 2023 in exchange for promissory notes totaling C$1,785,366.
In February 2023, the company sold 18 million PanGenomic warrants for gross proceeds of C$25,200. However, upon further review, the fair value of the 15.25 million PanGenomic common shares did not use the appropriate level 1 fair value input.
In addition, the company’s secured convertible debenture holder held a general security interest in the company’s assets, including Mindleap.
“The holder agreed to waive its security interest on the Mindleap asset in exchange for 250,000 common shares of the company and an amount payable of C$660,000. Upon further review, as of December 31, 2022, the above-noted transaction was not recorded and will be recorded in the restatement,” the company said in a statement.
Mydecine said that it its 2023 earnings will also be delayed due to the restatement and because the company changed auditors to HD CPA from BF Borgers CPA in March.
Running out of money
In November 2023, the company reported its thrid-quarter interim results and said it had only C$17,339 in cash. Mydecine also has been paying some debts with stock. At the end of September 2023, the company had an accumulated deficit of C$148,500,242 and a net loss of C$12,018,426.
Total expenses for Mydecine in the last reported quarter were C$1.1 million with a net loss of C$1.1 million. With no income for the company at this time, the clock seems to be ticking on whether it can raise more money to keep the doors open.
