Mind Cure Health (MCURF) Maxim Report

EQUITY RESEARCH COMPANY UPDATE Jason McCarthy, Ph.D. (212) 895-3556 jmccarthy@maximgrp.com Michael Okunewitch (212) 895-3579 mokunewitch@maximgrp.com Biotechnology – Psychedelics MCURF - OTCQB November 5, 2021 Closing Price 11/4/21 $0.25 CSE: MCUR C$0.31 Rating: Buy 12-Month Target Price: $1.00 52-Week Range: $0.21 - $0.86 Market Cap (M): 23.7 Shares O/S (M): 93.8 Float: 90.8% Avg. Daily Volume (000): 144.1 Debt (M): $0.0 Dividend: $0.00 Dividend Yield: 0.0% Risk Profile: Speculative Fiscal Year End: May Total Expenses ('000) 2021A 2022E 2023E 1Q C$323 C$4,355 C$5,671 2Q C$2,314 C$4,469 C$5,917 3Q C$3,283 C$4,847 C$6,411 4Q C$4,548 C$5,011 C$6,657 FY C$10,468 C$18,682 C$24,656 0.8 0.7 0.6 0.5 0.4 0.3 0.2 Jan-21 Mar-21 May-21 Jul-21 Sep-21 Nov-21 3 2.5 2 1.5 1 0.5 0 Price Volume Price (USD) Volume (MM) MCURF Source: Factset Mind Cure Health (MINDCURE) is listed on the Canadian Securities Exchange (CSE) under the symbol "MCUR" and OTCMKTS under the symbol "MCURF". The stock does not trade on a US National Exchange. Financial data is reported in Canadian dollars (C$) and is represented as such in our models. Market data including the stock price and target price are translated into US dollars (USD). Mind Cure Health Inc. Buy 2021 Sets the Stage for Unlocking Value in 2022; iSTRYM , Desire Program, Ibogaine, Pipeline – Reiterate Buy Summary • MINDCURE provided an update yesterday morning on its ongoing programs and clinical development, including synthetic ibogaine, the Desire Project, and iSTYRM. • For its synthetic ibogaine program, MINDCURE expects to have GLP supply available for research partners by C2Q22 and is planning to conduct a preclinical study with its research partner to initially conduct cardiac and neurological screens with data in C1Q22 and potential to move into behavioral studies. • The company has completed its draft research protocol for the Desire Project (MDMA in hypoactive sexual desire disorder, HSDD) and plans to schedule a pre-IND meeting for 1Q22, with a P2 planned for 3Q22. MINDCURE has also initiated a candidate selection program for two additional pipeline compounds, MC-106 and MC-808; updates expected in C2Q22. • For iSYTRM, MINDCURE has exceeded its initial target for the minimum viable product (MVP) launch, securing 20 partner clinics (from a target of 10 by YE21). Full deployment is expected in C1Q22, with expansion to Europe by 4Q22. An additional internally developed ketamine protocol is expected to be released in C1Q22. • Conclusion.Key in 2021 for Mindcure has been to continue to 'block and tackle' to best position the company in a rapidly evolving psychedelic-based medicines space. As such, while valuation has pulled back this year, the pieces should be in place to start to unlock value in MCUR/MCURF shares in 2022. Details Synthetic ibogaine. Ibogaine is a naturally derived psychedelic extracted from the iboga plant. The drug has shown promise in several indications including addiction, neuropathic pain, migraines, and TBI. However, research has been limited by the endangered nature of the iboga plant, which has caused export from Gabon (one of the major regions to which iboga is indigenous), to be banned. MINDCURE has a proprietary synthesis process for producing ibogaine, which could position it as one of the first suppliers for research and eventual clinical use of ibogaine, with demand expected to increase as the psychedelic space grows. MINDCURE has filed patents on two chemical synthesis pathways for ibogaine and has initiated Good Laboratory Practice (GLP) ibogaine leading to the production of Good Manufacturing Practice (GMP) and is on track to have GLP supply available to research partners by C2Q22. One of the factors which has led to some controversy surrounding ibogaine is reports of toxicity, specifically cardio and neurotoxicity. While the support for these toxicity claims is far from concrete, in our view, using doses far beyond what would likely be used in a therapeutic setting, this does present a risk. MINDCURE is currently preparing to ship ibogaine to its preclinical research partner to initially be used in cardiac and neurologic screens, with the potential to move into in-depth behavioral studies. This program is named MSYNTH-001 and initial results are expected in C1Q22, which could help better define safety and tox risks. MINDCURE Desire Project . Since MDMA is already in multiple P2 and P3 studies and has a well-categorized safety profile, the next step for MINDCURE is likely to move into a P1b or P2 study in HSDD patients. MINDCURE has assembled a team of leading researchers in female sexual desire research and psychedelics including Dr. Jennifer Mitchell, the lead author of MAPS' PTSD study, Dr. Anita Clayton, Professor and Chair of the Department of Psychiatry and Neurobehavioral Sciences at University of Virginia, Dr. Cindy Meston, director of the Female Sexual SEE PAGES 3 - 5 FOR IMPORTANT DISCLOSURES AND DISCLAIMERS INSTITUTIONAL USE ONLY