Biotechnology Company Increases Revenue by 534%

Awakn Life Sciences Corp. (NEO:AWKN; OTCQB:AWKNF; FSE:954) is a biotechnology company that focuses on developing treatments for addiction, especially Alcohol Use Disorder (AUD). The company is based in Toronto, Canada.

Financial Report

Awakn Life Sciences Corp. has announced its financial results and business highlights from the period ending on January 31^st of 2023. The company's revenue has increased by 534%. Anthony Tennyson, the CEO, commented "our clinics delivered strong revenue growth over the same time period with a 534% year on year increase in revenue and looking forward to the current fiscal year we are targeting a further increase in revenue from our clinics and partnerships."

According to Awakn, the UK Medicines and Healthcare products Regulatory Agency granted an Innovation Passport to Awakn for its proprietary ketamine-assisted therapy for Severe Alcohol Use Disorder (SAUD). This was granted through the Innovative Licensing and Access Pathway (ILAP), which aims to accelerate time to market. Awakn also signed a collaboration agreement with the University of Exeter for the upcoming phase 3 trial, which will assess ketamine-assisted therapy for the treatment of SAUD, which will cost approximately CA$1.25 million. The company also initiated an investigative study to establish the dissociative effect of a proprietary and patent pending formulation of (S)-ketamine and optimized route of administration to support commercialization in due course.

Awakn initiated another feasibility study for MDMA using orally disintegrating tablets (ODT) from Catalent's Zydis technology. Awakn's Phase 3 trial is to be delivered in the UK's National Health Services (NHS), which has been approved for grant funding for 66% of the costs by the National Institute for Health and Care Research (NIHR) and the Medical Research Council (MRC).

The company has also announced the location for a larger clinic in Oslo, and expects that the new premises will be the first step in its Nordic expansion plans. Awakn has announced the opening of a fourth clinic: Awakn Clinics Trondheim is the second clinic in Norway. The company has an additional two clinics in the UK.

Awakn achieved an overall yearly revenue of $1,495,343, which represents a 534% increase year over year. The revenue for Q4 of 2023 was $471,813 compared to Q4 of 2022's revenue of $204,300. This is a 131% increase, and Q4 of 2023 achieved a 10% growth rate on Q3 of 2023 with a revenue increase of $430,504 to $471,813. Revenue during the 12 month period was predominantly generated from ketamine-assisted therapy at the London, Oslo, and Bristol clinics. As of January 31^st, 2023, the company had approximately CA$550,866.

Why Pharmaceuticals?

Psychedelic treatments are rapidly being accepted by governments around the world. Australia will become the first country in the world to recognize psychedelics as a medical treatment on July 1^st of 2023 after its Therapeutic Goods Administration (TGA) has approved several substances. The TGA has said that it will permit MDMA to be prescribed for Post Traumatic Stress Disorder, and psilocybin for depression.

In the United States, reform bills have been introduced in a number of state governments, including Hawaii, New Hampshire, Utah, West Virginia, and New York. Hawaii has created a group to study the efficacy of psilocybin, while the bill in New Hampshire would only remove DMT from the state's list of controlled substances. New York's bill proposes legalizing psilocybin therapy for certain conditions, and Utah is also considering legalizing the substance for the treatment of certain mental health conditions. West Virginia is considering the removal of THC, marijuana, and psilocybin from its list of controlled substances.

Catalysts

According to analyst Clive Maund, Awakn has become a more attractive prospect over time. He reports that "Awakn is therefore considered to be an even stronger Buy than when we last looked at it, and this is one that is considered to be worth going overweight on, and U.S. subscribers may be heartened to know that it has acceptable liquidity on the US OTC market."

The company has announced the closing of a private placement, which led to the issue of 3,395,812 shares at a price of $0.55. This private placement brought in $1,867,697.

Another private placement lead to the issue of 2,392,858 shares at $0.46 per unit for additional gross proceeds of CA$1,100,715.

Awakn is also increasing ownership of Awakn Bristol to 100%.

Ownership and Share Structure

Awakn has a market cap of US$8.08 million. There are 28,799,011 common shares, 4,722,064 warrants, and 1,996,746 stock options. They trade in the 52 week period between 0.1680 and 1.0800.

Management and insiders own 21.22% of Awakn. George Scorsis owns 1.63% with 0.53 million shares, and Anthony Tennyson owns 0.07% with 0.02 million shares.

In terms of institutions, OrbiMed Advisors, LLC owns 10.45% with 3.39 million shares. OrbiMed Advisors represents a strategic investor.

The company reports no potential sellers. As for warrants overhang, aside from current financing with warrants at CA$0.68, all other warrants are CA$1.20 or higher.

The company does not work with any influencers or IR firms, but HCW, Maxim, and Stifel all provide analysis of the company.

Important Disclosures:

1. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Awakn Life Sciences Corp., a company mentioned in this article.
2. Amanda Duvall wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. They or members of their household own securities of the following companies mentioned in the article: none. They or members of their household are paid by the following companies mentioned in this article: none.
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