EMD plans to expand again, this time into Victoria and raises $8M

Published 21-NOV-2025 10:02 A.M.

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Our psychedelic and mental health Investment Emyria (ASX: EMD) has just raised $8m and exercised its option to establish its first clinic in Victoria.

EMD is the first (and only) company in Australia to receive regulatory approval AND secure support from a major health insurer to provide psychedelic-assisted therapies.

A few months ago EMD signed an agreement with Medibank - which would see Medibank pay for all the costs of its “psychedelics for mental health” treatment.

(These treatments are typically valued between $20,000 and $30,000 per patient)

That deal was initially in place for patients coming into EMD’s Perth clinics.

Since then, EMD is well on the way to expanding onto the East coast, with a clinic there having been confirmed today to have opened in Brisbane, which was set to be open by the end of the year (source).

Yesterday, EMD has exercised its option to open a clinic in Victoria also.

(Source)

The raise yesterday of $8M at 6c per share with 10M unlisted options at an exercise price of 12c, double that of the raise price.

We also added to our position in the raise.

These funds will be put toward the continuing growth plan, with the east coast footprint set to continue expanding in 2026, with a further 2 sites under consideration mentioned in the announcement.

The existing deal with Avive has been expanded giving EMD a 6 month exclusive negotiation right on the clinic in Victoria and has right of first refusal on all potential Avive Queensland sites.

This will keep the existing model the same, so will continue the strategy of not needing to spend upfront capital to construct new sites as it can utilise existing spaces with a relatively cheap and simple fitout.

As a result, there will be further infrastructure and personnel required across the Empax network, which EMD is now equipped to do as a result of today's raising.

Recently, the Department of Veteran Affairs announced that it would fully fund psychedelic treatment for eligible veterans for Treatment Resistant Depression and PTSD, so this will increase patients for EMD.

While this wasn’t specifically aimed at EMD, it just happens that currently EMD is the only company operating private clinics in Australia that has regulatory approval (plus has the backing of a major health insurer in Medibank) that can deliver psychedelic-assisted therapies.

We covered that piece of news in an article: EMD: Psychedelics to treat mental health - yep, it’s happening. Dept of Veteran Affairs now paying for treatments.

So EMD has quite a bit going on and now has the balance sheet with a roadmap planned to continue the national rollout.

Plus the community based programs that relate to the DVA stream of patients expected from that recent announcement from the federal government.

The Federal Minister for Veterans Affairs the Hon. Matt Keogh visited the Perth clinic and was pictured with EMD Chairman Greg Hutchinson.

(source)

Here is how we see EMD’s rollout strategy playing out:

Because EMD is in the fortunate position of securing a “payer” for its services, its main focus is on scaling up its operations.

We have Invested in EMD to see it not only become the market leader in the Australian psychedelics care, but build a monopoly on delivering these services.

At the same time, we recognise that there is no guarantee of success here, this is small cap investing and there are risks involved.

We think EMD has a very defensible market position because it has:

Authorisation from the TGA to deliver MDMA-assisted care to patients (this is not easy to get)
A Payer Agreement with Medibank to cover the cost of these therapies to its members (years in the making).
Data that shows it works and continues to work months after the patient is treated.
A means to deliver therapies through physical clinics that it owns and operates (EMD is now looking to expand its footprint by licensing hospital space).
Scale potential with an approved protocol from the TGA that it can “franchise” out to other clinics looking to deliver assisted therapies.

What’s next for EMD?

Revenues from Medibank deal increasing

According to EMD’s recent announcement, the Brisbane site has recently started receiving revenue from the Medibank deal. So we wait to see how much will be booked in the current and then next full quarter. So we could start to see increasing revenues in upcoming quarterly reports.

More new sites opened

Now that EMD has signed on with Avive Health we want to see other potential sites that it can scale up its clinics to, Victoria has been announced as the next site planned to be opened.

Expand care offering to new indications and/or new drug therapies

We want to see EMD expand its assisted therapy programs to psilocybin and ketamine, also for different mental health conditions like anxiety, treatment resistant depression etc...