Braxia Scientific is a Toronto-based company that focuses on depression, suicidality and related mental health conditions. Today, the company announced it is buying KetaMD to extend its telehealth prowess and in particular to expand its tech-facilitated ketamine-based treatments from its current local market of Florida into the wider U.S. The deal is worth around $6 million, the company told TechCrunch.
KetaMD’s telemedicine platform provides access to affordable at-home ketamine treatments for people suffering from anxiety, depression and related mental health conditions. The company's treatments are medically supervised, guided virtually by registered nurses with mental health expertise, and backed 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 provides a compelling and differentiated value proposition. KetaMD’s innovative technology capabilities provide Braxia the logistics and know-how to offer patient-centric treatments, both in-person and delivered through digital telehealth.
"Today marks a notable step forward in bringing awareness, accessibility and scalability of the benefits of ketamine and psychedelics generally for those suffering from depression and other mood disorders," Dr. Roger McIntyre, CEO, Braxia Scientific said in a statement to TechCrunch. "We’ve seen improved outcomes firsthand from ketamine treatment in our clinics and in our clinical trials. Adding digital telehealth capabilities through KetaMD’s highly anticipated online and mobile platform strengthens our position to lead the medical use of evidence-based psychedelics, while accelerating our ability to get treatment to those in need, safely and quickly across the U.S. and Canada, and globally in the future."
KetaMD is currently available in the state of Florida, but a roll-out to other key states is planned. Specifically, the company is gearing up to launch its offering in California, New York, Texas, Colorado and Washington this year, and plans to continue to expand throughout the United States. The KetaMD brand will remain as 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 Braxia common shares. After market close, Braxia shares were trading at around $0.049 per share, so the deal is worth around $2 million, plus an additional $1 million or so worth of "Earnout Shares" in five years based on certain performance targets. The somewhat complex deal is worth a max total of $6.3 million, the company notes.