Braxia Scientific reaches agreements to settle class-action lawsuits in the US and Canada


Agreements subject to court approval

TORONTO, April 13, 2022 /PRNewswire/ — Braxia Scientific Corp. (“Braxia Scientific” or the “Company”) (CSE: BRAX) (OTC: BRAXF) (FSE: 4960) announced today that it has reached an agreement in principle (the “US Settlement”) to resolve claims that in a securities class action (“U.S. Class Action”) filed against the Company and certain of its former officers in the United States District Court for the Central District of California in April 2021. The Company also announced that it has signed a settlement agreement (the “Canadian Settlement”) to resolve a class action (“Canadian Class Action”) filed in May 2021 in the British Columbia Superior Court against the Company, its CEO and some of its former officers Shareholder and Underwriters.

The US settlement provides for a cash payment from the company of $1 million to settle the US class action. The Canadian settlement calls for a cash payment of CDN$1.9 million, of which the company will pay CDN$1.6 million.

With insurance available, the total cost to the Company of settling both class actions is approximately $1.36 million. This does not include legal fees incurred by the Company, which are estimated at approximately CDN$950,000, of which approximately CDN$750,000 was paid.

Both the US settlement and the Canadian settlement are subject to court approval at hearings expected later in 2022. Pursuant to the respective settlement agreement, once the US Settlement and the Canadian Settlement receive court approval, both class action lawsuits against all defendants will be dismissed. Approval by the respective courts, notification to the putative classes and the fulfillment of the usual conditions of effectiveness will take several months.

As previously announced, given the uncertainties surrounding the litigation, the Company was unable to assess the likelihood of potential losses or an adverse financial impact or to reasonably estimate the amount of potential losses associated with the class actions. As a result of joining the US Settlement and the Canada Settlement, the Company expects to include the above total settlement charges in its results of operations and financial condition for the fiscal quarter ended June 30, 2022.

resignation of the director

The company announces that Dr. David Greenberg has resigned as a director. The resignation is unrelated to the Class Actions or the Settlement. dr Greenberg is not a party to the class action lawsuits.

The company appreciates David’s significant contribution to the company and wishes him well in his future endeavors.

About Braxia Scientific Corp.

Braxia Scientific is a medical research company with clinics offering innovative ketamine treatments for people living with depression and related disorders. Through its medical solutions, Braxia aims to reduce the burden of disease caused by brain-based disorders, including major depressive disorders. Braxia is primarily focused on (i) owning and operating multidisciplinary clinics that provide treatment for mental disorders, and (ii) research activities related to the discovery and commercialization of novel drugs and delivery methods. Braxia aims to develop ketamine and derivatives and other psychedelic products from its IP development platform. Through its wholly owned subsidiary, Canadian Rapid Treatment Center of Excellence Inc., Braxia currently operates multidisciplinary community clinics providing rapid-acting treatments for depression in Mississauga, Toronto, Ottawa and Montreal.


“Dr Roger S McIntyre”

dr Roger S McIntyre


The CSE has not reviewed this press release and accepts no responsibility for the accuracy or adequacy of this press release.

Cautionary Statement Regarding Forward-Looking Information

This press release contains forward-looking statements within the meaning of applicable securities laws. All statements that are not historical facts, future estimates, plans, programs, forecasts, projections, goals, assumptions, expectations or beliefs about future performance are “forward-looking statements.”

Forward-looking statements include statements about the intended promise of ketamine-based treatments for depression and the potential of ketamine to treat other emerging psychiatric disorders, such as: B. bipolar depression. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual results, events or developments to differ materially from any future results, events or developments expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to, the failure of ketamine, psilocybin, and other psychedelics to provide the expected health benefits and unexpected side effects, reliance on obtaining and maintaining regulatory approvals, including the acquisition and renewal of federal, state, local , local or other licenses and engaging in any activity that may later be found illegal under local or international law. Ketamine and psilocybin are currently Schedule I and Schedule III controlled substances respectively under the Controlled Drugs and Substances Act, SC 1996, c. 19 (the “CDSA”) and it is a criminal offense to possess such substances under the CDSA without a prescription or legal exemption. Health Canada has not approved psilocybin for any indication as a drug, but ketamine is a legal drug to treat certain mental illnesses. It is illegal to possess such substances in Canada without a prescription.

These factors should be considered carefully and readers are cautioned not to place undue reliance on such forward-looking statements. Although the Company has attempted to identify important risk factors that could cause actual actions, events or results to differ materially from those described in the forward-looking statements, there may be other risk factors that cause actions, events or results to differ materially expected. estimated or intended. Additional information identifying risks and uncertainties that could affect financial results is contained in the Company’s filings with Canadian securities regulators, including its amended and restated listing statement dated April 15, 2021, which is available at are. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in the forward-looking statements.

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SOURCE Braxia Scientific Corp.


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