MYDECINE

The small-cap markets have been invaded with a flurry of psychedelics stocks to watch

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June 9, 2020

In the path to expand the capabilities of the medicine field, companies are starting to investigate the potential of psychedelic medicines and are looking to raise capital in the public market.

While this market still finds itself in its early stages, the promising potential of psychedelic medicine drug products has attracted the interest of savvy investors — that’s because these psychedelic stocks offer an emerging investment opportunity.

A shroom boom is in the works, led by encouraging results from psychedelic medicine treatments for various issues associated with mental health, and in association with potential law changes in different parts of the world.

Here the Investing News Network presents a current list of psychedelics stocks to watch. The following stocks are all listed on Canadian public stock exchanges and are arranged alphabetically.

Champignon Brands (CSE:SHRM,OTCQB:SHRMF)

The public entity Champignon Brands manages an extensive psychedelic business with various divisions in charge of advancing its operations through research, trials and product formulations.

The company is pursuing operations in the US, more specifically California, after buying a company that owns a ketamine-infusion treatment. Champignon Brands plans to scale up these operations and expand the number of clinics offering psychedelic treatments to patients.

Codebase Ventures (CSE:CODE,OTCQB:BKLLF)

Codebase Ventures is an investment firm offering investors a diverse portfolio of opportunities, including a direct stake in Red Light Holland, a publicly traded entity involved in the psychedelic market through its subsidiary Titan Shrooms & Psychedelics.

Graph Blockchain (CSE:GBLC)

After embarking on a search for alternative business models to incorporate and support its blockchain technology, Graph Blockchain determined it would acquire Shroom Street in a deal worth C$1 million.

The company plans to pair its technology with an upcoming ecommerce platform for its psychedelic business purchase, set to launch at the end of 2020 for online sales in legal jurisdictions.

Hollister Biosciences (CSE:HOLL,OTC Pink:HSTRF)

As a way to pursue exposure to the psychedelic arena, this cannabis player confirmed an acquisition deal worth C$1.2 million for AlphaMind Brands, which, according to the public company, will develop a “portfolio of certified legal mushroom-based natural health products.”

Carl Saling, founder and CEO of Hollister, called the acquisition a promising opportunity that could complement its cannabis brand business.

Mind Medicine (MindMed)(NEO:MMED,OTCQB:MMEDF)

MindMed became the first psychedelic firm to make its public debut on Toronto’s NEO Exchange earlier in 2020, earning the attention of investors as part of the new crop of psychedelics stocks to watch.

The company is investigating the use of its 18-MC psychedelic drug candidate as an aid for battling opioid dependency. MindMed has earned the attention of investors thanks to two of its most significant backers: former Canopy Growth (NYSE:CGC,TSX:WEED) CEO Bruce Linton and notorious Dragon’s Den and Shark Tank investor Kevin O’Leary.

MOTA Ventures (CSE:MOTA,OTC Pink:PEMTF)

Investors in MOTA Ventures have seen the company develop an ecommerce platform for hemp-derived cannabidiol (CBD) products in the US and Europe. Now the company plans to expand its operations in Europe to explore the potential of psychedelic treatments.

The public firm brought in privately held Verrian, which owns a manufacturing facility in Germany. The goal is for this facility to become the psychedelic research hub for psilocybin mushroom therapies against opioid addiction.

NewLeaf Brands (CSE:NLB,OTC:NLBIF)

NewLeaf Brands operates primarily as a CBD brand company with various product offerings. However, this year the company bought itself an entry into the psychedelic space with the total acquisition of Colorado-based Mydecine Group, worth C$1.2 million

The fungi acquisition is led by Robert Roscow, who served as the director of research with Ebbu, a cannabinoid research company bought by Canadian giant Canopy Growth. Roscow is now the chief science officer for NewLeaf.

New Wave Holdings (CSE:SPOR)

Investment firm New Wave Holdings offers shareholders an advanced strategy into three segments of the psychedelics space: a recreational product line, a passive cosmetic lineup and the possibility for further high-end medical research-grade items.

New Wave touts a production presence in Jamaica as the core of its psychedelic-based business.

Numinus (TSXV:NUMI)

Numinus pitches itself to investors as a healthcare firm exploring the compelling new segments of available health treatments to patients. Thanks to specific licensing, the company is capable of operating in the cannabis and psychedelics industries.

Through its Numinus Wellness division, the public company can research the development of psychedelic therapies for treatments related to physical, mental and emotional health.

Red Light Holland (CSE:TRIP)

This firm is focused on a business model producing and distributing legally sanctioned recreational psilocybin truffles in the Netherlands. The public listing represents a business evolution for the firm as it pursues higher-stakes capital from the market, Chairman and CEO Todd Shapiro said in a statement.

This firm has a financial backing from publicly traded investment firm Codebase Ventures.

Revive Therapeutics (CSE:RVV,OTC Pink:RVV)

Revive Therapeutics bought its way into the promising psychedelic space thanks to a C$2.75 million acquisition agreement with Psilocin Pharma, which has successfully developed unique product formulations for the psilocybin agent.

In the wake of the acquisition deal being announced, Michael Frank, CEO of the public firm, said the deal would add into his company’s “clinical initiatives in liver disease and inflammation.”

Roadman Investments (TSXV:LITT)

In early 2020, this venture capital investment firm confirmed an entry into the new space with a joint venture alongside Psychedelic Insights.

The public firm committed to a US$500,000 injection to kickstart an operation agenda for the joint venture. The goal for this partnership is to create a line of clinics capable of offering guided therapies utilizing the much-promoted psilocybin.

The Yield Growth (CSE:BOSS,OTCQB:BOSQF)

This wellness cannabis firm has a substantial investment in the psychedelics market thanks to a majority ownership stake in NeonMind Biosciences, previously known as Flourish Mushroom Labs. According to the parent company, NeonMind will carry through clinical trials on the therapeutic effects of psilocybin.

NeonMind plans to eventually launch branded products, according to its parent company, such as mushroom-infused items designed to “support immune, cognitive, memory and other brain functions.”