Mind Cure Health Inc. (CSE:MCUR) (OTCQX:MCURF) (FRA: 6MH), a mental health and wellness company working in the psychedelics sector, announced that a special committee its board of directors concluded a review process and has determined that the capital required to continue the Company's business plan is unlikely to be found under the current and foreseeable market conditions.
Shutting Down
As such, the Board decided to immediately eliminate all expenditures outside those required to preserve the value of the Company's assets and will immediately cut all of its C-suite executives and employees, except for its CFO, vice president of engineering and certain administrative staff required to wind-down the its operations.
"Though we continue the Strategic Review Process, we have identified no available strategic alternatives that would require further development and execution of MINDCURE's existing business plan," said the chair of MINDCURE's Special Committee, Jason Pamer.
The Company will also stop all non-committed expenditures related to the development and marketing work of its iSTRYM product, R&D related to its synthetic ibogaine program and R&D related to its Desire Project.
"While we truly appreciate the impact of these changes on our team and our suppliers, our Strategic Review Process has led us to believe that the actions announced in this news release are necessary to preserve cash position and maintain value of the Company's other assets while the Company continues to seek a strategic transaction," said Philip Tapley, chair of MINDCURE's board of directors and interim CEO.
Other than what was described in a company press release, Mind Cure has not announced any decisions related to strategic alternatives or expressed assurances regarding the evaluation of strategic alternatives.
“The Company does not intend to comment further unless and until further disclosure is appropriate or necessary,” according the release.
Mind Cure's stock stopped trading when the news was announced but did resume after a few hours and then fell by 38%.
