Braxia Scientific is a Toronto-based company that focuses on depression, suicidality, and related mental illness. Today the company announced that it is buying KetaMD to expand its telehealth capabilities and, in particular, expand its technology-enabled ketamine-based treatments from its current local Florida market into the wider US. The deal is worth about $6 million, the company told gotechbusiness.com.
KetaMD’s telemedicine platform provides access to affordable at-home ketamine treatments for those suffering from anxiety, depression, and related mental illness. The company’s treatments are medically supervised, virtually supervised by registered nurses with mental health expertise, and supported by psychiatrists and depression researchers. KetaMD’s integration of ketamine and telemedicine is guided by best practices and treatment guidance.
With the acquisition of KetaMD, Braxia offers a compelling and differentiated value proposition. KetaMD’s innovative technological capabilities provide Braxia with the logistics and know-how to offer patient-centered treatments, both in-person and delivered via digital telehealth.
“Today marks a remarkable step forward in the awareness, accessibility and scalability of the benefits of ketamine and psychedelics in general for people suffering from depression and other mood disorders,” said Dr. Roger McIntyre, CEO of Braxia Scientific in a statement to gotechbusiness.com. “We have seen first-hand better results from ketamine treatment in our clinics and in our clinical trials. By adding digital telehealth capabilities through KetaMD’s highly anticipated online and mobile platform, we are strengthening our position to be at the forefront of the medical use of evidence-based psychedelics, while enabling faster access to treatment for those in need, safely and soon in the US and Canada, and worldwide in the future.”
KetaMD is currently available in the state of Florida, but a rollout to other major states is planned. In particular, the company is preparing to launch its offerings this year in California, New York, Texas, Colorado and Washington, and plans to continue expanding in the United States. The KetaMD brand remains a standalone brand under the Braxia umbrella.
Under the terms of the share purchase agreement, Braxia acquired 100% of the common stock of KetaMD in exchange for 42 million common shares of Braxia. After market close, Braxia shares traded at approximately $0.049 per share, so the deal is worth approximately $2 million, plus an additional $1 million in “Earnout Shares” over five years based on certain performance targets. The somewhat complex deal is worth a total of $6.3 million, the company notes.