08:30 AM EDT, 04/15/2024 (MT Newswires) -- Numinus Wellness Inc. ( NUMIF ) , a mental health care company trading near 52-week lows, said Monday that it has decided to explore opportunities to redefine, divest and/or discontinue its Canadian clinical operations following a strategic review.

Numinus said it will instead focus on growth opportunities in the US, aligning with it efforts to maximize shareholder returns.

The company noted that its US operations generated 88% of its revenue in fiscal 2023.

"We believe this decision will support our goal of profitability from our remaining operations and our focus on the significant opportunities available in the U.S. with MDMA at the new drug application stage with the FDA and several novel drug therapies at late clinical trial stages, we expect that the U.S. will be first to introduce breakthrough therapies in patient care," Founder and CEO Payton Nyquvest said.

This comes after the company over the weekend reported a quarter-over-quarter drop in revenue and gross profit.

Second-quarter revenue was $5 million, down 15% from the previous quarter, the company said. Gross profit declined 23% from the first-quarter to $0.5 million while the gross margin fell 3.1 percentage points to 33%.

The company has been implementing operational changes over the past two quarters "for sustainable growth and profitability in the quarters to come," said Numinus founder and CEO Payton Nyquvest, adding that the changes include reducing staff, concentrating on higher margin procedures at clinics and eliminating an unproductive location in Arizona.

"While these initiatives have generated one-time impacts in the quarter, they are also enabling us to optimize our patient experience and care model, improve efficiencies, and establish best practices," Nyquvest said.

Numinus' board began a review to evaluate strategic alternatives to boost shareholder value, the company said.