February 8, 2022

Psychedelic Clinics Treating Mental Health, Addiction & Trauma | The Newly Institute

Midas Letter
Midas Letter
Psychedelic Clinics Treating Mental Health, Addiction & Trauma | The Newly Institute
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The Newly Institute owns a revenue-generating network of multi-disciplinary health clinics using psychedelic-assisted psychotherapy to treat mental health, addiction and trauma. Its 11,000 sq. ft. flagship clinic is predicted to earn approximately $5 Million in 2022. It currently treats military veterans with PTSD, first responders with trauma, First Nations with addiction, and long-term disabilities with depression.

But The Newly institute is not stopping there. The company aims to become the largest and premier operator of inter-disciplinary mental health clinics in Canada.

The Newly Institute has the goal to go public this year.

The company is inviting strategic investors to invest at a pre-money valuation of approximately $23 million. That valuation is lower with other comparable public psychedelic companies trading at much higher valuations.

“I think what makes The Newly different is that by the time we go public we will have revenue and we’re actually on track to be cashflow positive. So that will differentiate us from the rest of the pack. The other thing that will differentiate us is that we’re much more than just psychedelics. As I mentioned we bill ourselves as a holistic interdisciplinary mental health clinical company so in addition to psychedelic-assisted psychotherapy we have an addiction treatment program, we have a chronic pain management program and we have a return to work program and so we have multiple streams of revenue.” – The Newly Institute CEO Arthur Kwan

This provides an interesting proposition for investors as the company will have a head start to pre-revenue psychedelic companies expecting to become cash-flow positive this year.

Transcript

00:00 – The Newly Institute CEO Arthur Kwan
00:37 – Business overview
02:21 – Flagship clinic treating patients
01:45 – Pain management using psychedelics
02:32 – Pre-IPO funding round
03:14 – Growth plan & where net proceeds will be spent
04:13 – Canada focus & future USA expansion
04:48 – Patient experience in clinics/outpatient program
05:56 – Health insurance/Private healthcare programs
06:19 – Program costs
06:43 – Success rate statistics
07:28 – Public psychedelic sector & differentiators

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