Braxia Scientifi Stock Price, News & Analysis

Braxia Scientific Corp. (OTC Pink: BRAXF) is described in its public disclosures as a medical research and telemedicine company operating in the outpatient mental health and substance abuse centers industry. The company has focused on clinics that provide ketamine treatments for persons with depression and related disorders, and in some periods has also referenced psilocybin treatments. Its activities have combined clinical services for mental health disorders with research and development related to novel therapies and drug delivery methods.

According to multiple company news releases, Braxia Scientific has been primarily focused on owning and operating multidisciplinary clinics that provide treatments in-person and virtually for mental health disorders. Through these medical solutions, the company has stated that it aims to reduce the illness burden of brain-based disorders, such as major depressive disorder and related conditions. The clinics have been operated through its wholly owned subsidiary Braxia Health, formerly known as the Canadian Rapid Treatment Center of Excellence Inc.

Braxia Health has been described as operating community-based clinics offering rapid-acting treatments for depression. At various times, company disclosures have noted locations in Mississauga, Toronto, Kitchener-Waterloo, Ottawa, Montreal, and later specifically a clinic in Mississauga. These clinics have been positioned as multidisciplinary environments where specialized professionals deliver rapid-acting treatments for depression and related mental health disorders.

In addition to its clinic operations, Braxia Scientific has reported that it conducts research activities related to discovering and commercializing novel drugs and delivery methods. The company has stated that it seeks to develop ketamine and derivatives and other psychedelic products from its intellectual property development platform. This combination of clinical operations and research has placed the company within the broader health care and social assistance sector with a focus on mental health treatment and psychedelic-assisted therapies as described in its own communications.

Corporate developments and strategic review

Company news releases have outlined a period of financial and strategic challenges. Braxia Scientific has reported working capital deficits and efforts to reduce expenses, streamline operations, and explore strategic alternatives. Disclosures have mentioned a formal process to evaluate options such as a potential sale of the company, a merger or other business combination, a sale of all or a portion of its assets, strategic investment, or other significant transactions. The company has also indicated that it received strategic inquiries from multiple parties during this review period.

In its financial and corporate updates, Braxia Scientific has discussed higher treatment volumes and revenue growth at its clinics during certain reporting periods, while also highlighting difficulties in accessing capital through public markets and the need to address cash shortfalls. The company has described measures such as reducing the size of its executive team and deferring salaries to manage its financial position.

Regulatory status and trading issues

Braxia Scientific has disclosed several regulatory developments affecting its securities. The Ontario Securities Commission issued a failure-to-file cease trade order (FFCTO) on August 2, 2024, due to the company’s failure to file audited annual financial statements, management discussion and analysis, and related CEO and CFO certificates for the financial year ended March 31, 2024, by the required deadline. As a result of the FFCTO, trading in the company’s securities has been prohibited in each Canadian jurisdiction where it is a reporting issuer, subject to limited exceptions for certain beneficial securityholders trading through foreign organized regulated markets.

The company has also reported that, following the FFCTO, its common shares were suspended from trading on the Canadian Securities Exchange (CSE) as of August 6, 2024, as a regulatory halt. The CSE advised that if Braxia Scientific failed to be reinstated within 90 days of the suspension, the shares would be automatically delisted without notice. In a later update, the company stated that the CSE had not delisted the shares as of the date of that release but that, given its financial position and inability to complete the required filings, it anticipated that its securities would be imminently delisted from the CSE.

Asset sale and wind-down of operations

A significant change in Braxia Scientific’s business occurred with the approval and completion of a major asset sale. At an Annual General and Special Meeting of shareholders held on October 9, 2024, shareholders approved a special resolution authorizing the sale of all or substantially all of the company’s assets in connection with a proposed transaction with an individual purchaser, specifically including the sale of the assets of Canadian Rapid Treatment Center of Excellence Inc., the company’s wholly owned subsidiary and clinic operator. The company later reported that this transaction was completed on November 22, 2024.

Following completion of the transaction, Braxia Scientific disclosed that the sale did not leave the company with sufficient resources to continue any meaningful operations. The company reported minimal cash assets and a significant working capital deficiency. It stated that its only remaining asset is the intellectual property related to the KetaMD platform and that it would make efforts to realize value for these assets, while cautioning that there was no timeline or guidance on any amount that might be obtained and that it was unlikely that any meaningful amount would be available to satisfy existing liabilities or for distribution to shareholders.

As a result of these developments, Braxia Scientific has stated that it will wind down operations after dealing with remaining staff obligations and that it has no plans to continue or pursue any further business at this time. These disclosures indicate that the company has effectively ceased operating its prior clinic and research business and is in a wind-up phase, with limited remaining assets and significant liabilities.

Business focus prior to wind-down

Before the asset sale and announced wind-down, Braxia Scientific’s stated business model combined clinical services and research. The company described itself as primarily focused on:

• Owning and operating multidisciplinary clinics providing treatments in-person and virtually for mental health disorders.
• Conducting research activities related to discovering and commercializing novel drugs and delivery methods.
• Developing ketamine and derivatives and other psychedelic products from its intellectual property development platform.

Through these activities, the company aimed to address depression and related mental health disorders, with an emphasis on rapid-acting treatments and telemedicine-enabled access. Its clinics, operated through Braxia Health, were described as community-based and multidisciplinary, reflecting a model that integrated clinical practice with ongoing research and development in mental health therapeutics.

Stock and listing context

Braxia Scientific’s disclosures identify its listings on multiple markets, including the Canadian Securities Exchange under the symbol BRAX, OTC Pink under the symbol BRAXF, and a Frankfurt listing under the symbol 4960. Regulatory actions in Canada, including the FFCTO and trading suspension on the CSE, have affected the company’s ability to have its shares traded on that exchange, and the company has indicated that it expects an eventual delisting from the CSE. Investors researching BRAXF should consider the company’s reported wind-down of operations, its limited remaining assets, and its working capital deficiency as described in its own news releases.

Key points for investors researching BRAXF

• Braxia Scientific has operated as a medical research and telemedicine company focused on ketamine treatments and related mental health services through multidisciplinary clinics.
• The company has combined clinical operations with research into novel drugs and delivery methods, including ketamine derivatives and other psychedelic products as described in its disclosures.
• Regulatory issues, including a failure-to-file cease trade order and trading suspension on the CSE, have significantly affected its public listing status.
• Shareholders approved, and the company completed, a sale of all or substantially all of its assets, including the assets of its clinic operator subsidiary.
• Following the asset sale, Braxia Scientific reported that it lacks sufficient resources to continue meaningful operations and plans to wind down, with only intellectual property related to the KetaMD platform remaining and a significant working capital deficiency.