Are These On Your List Of Penny Stocks In September 2020?
If you’re looking for penny stocks today you are essentially searching for a reason. There are many reasons why you may want to trade or even invest in penny stocks. Maybe a company has an upcoming financial report, or maybe a company just released big news. Developments within companies usually cause their stock price to move in the short term. Not all penny stocks will perform well in the market despite this.
When companies report negative news it can see shares fall immensely. Penny stocks tend to be more volatile than your typical large-cap stocks. September has now arrived with many more opportunities to profit with penny stocks.
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Among the companies gaining attention, shroom stocks have been in the spotlight of investors. The companies in the psychedelics sector have been making many advancements in 2020. So now it is time to highlight some of these companies making advancements. Here are some mushroom penny stocks to watch right now & one psychedelic stock set to IPO.
Psychedelic Penny Stocks To Watch: Revive Therapeutics
The first penny stock we are going to have a look at is Revive Therapeutics Ltd. (RVVTF Stock Report). Revive Therapeutics is a Canada based specialty health sciences company. Revive Therapeutics recently announced that it received a Clinical Trial Agreement with the Board of Regents of the University of Wisconsin System. This deal was conducted on August 28th and is titled “Phase I Study of the Safety and Feasibility of Psilocybin in Adults with Methamphetamine Use Disorder”.
The company stated the following, “We are delighted to be collaborating with clinical researchers at the University of Wisconsin‒Madison to advance the development of psilocybin for the potential treatment of methamphetamine use disorder,” said Michael Frank, Revive’s Chief Executive Officer. “We are building a pipeline of clinical-stage psychedelic-derived therapies for addiction disorders with a focus on psilocybin with unique dosage forms.”
Methamphetamine use disorder is caused by the reoccurring use of methamphetamine. The issues with it include health issues, continued use, withdrawals, and more. More than 1.1 million people in the US deal with this. So this advancement for Revive Therapeutics seems to be a significant one.
If you’ve followed Revive for a while, you’ll recall its acquisition of Psilocin Pharma Corp. This put the company in the space, focusing on the development of Psilocybin-based therapeutics in various diseases and disorders. Subsequently, the company solidified its research partnership with the University of Wisconsin-Madison. Fast-forward to the third quarter and the company continues to expand on its collaborations focused on psilocybin’s benefits. It’s also one of the few mushroom penny stocks that have climbed higher on a year-to-date time frame.
Psychedelic Penny Stocks To Watch: Jaguar Health Inc.
Something we haven’t seen are NASDAQ and NYSE companies adding psychedelics to their treatment portfolio on a meaningful level. This isn’t to say that there aren’t some psychedelic penny stocks to watch. But it does mean that this is still a very early-stage niche. Unlike Revive, Jaguar Health (JAGX Stock Report) has added a psychoactive product to its platform but on the stock side of the equation, it’s clear that the market needs more to chew on.
This company is a commercial-stage pharmaceutical company primarily focused on developing gastrointestinal products for humans and animals. This week, Jaguar Health announced that it is launching its mental health Entheogen Therapeutics Initiative. The goal is to discover new and groundbreaking natural medicines that treat mood disorders, addiction, neurodegenerative diseases, and more.
The CEO and President of Jaguar, Lisa Conte said, “Jaguar is excited to be leading this effort to potentially uncover a pipeline of novel psychoactive plant-based compounds from our library and engaging with our advisors and potential corporate partners to develop these compounds into possible medical breakthroughs. Clinical research has shown that psychoactive plant-based compounds provide novel mechanisms to potentially provide meaningful healing benefit – not just disease modification, as is the case with SSRIs – to patients suffering from a variety of mental health conditions.”
There’s still quite a bit of groundwork to lay. This appears to be a very early-stage initiative started by the company. Jaguar said it’s still in the process of engaging a scientific strategy team. It also has yet to solidify additional corporate partnerships with “companies devoted to bringing novel, plant-based psychoactive therapies to patients”. So there’s likely a lot more question than answers right now and that may have reflected in the stock’s recent downturn this week.
Psychedelic Penny Stocks To Watch: Seelos Therapeutics Inc.
The next company on this list is Seelos Therapeutics Inc. (SEEL Stock Report). The biopharmaceutical company focuses on treating the central nervous system and respiratory diseases among others. On August 25th, Seelos announced that it received European Orphan Drug Designation for SLS-005. This is to treat Sanfilippo syndrome, Spinocerebellar Ataxia Type 3, and Oculopharyngeal Muscular Dystrophy.
Back in June, the company announced its final data from Phase I of its study of intranasal racemic ketamine (SLS-002). The CEO and Chairman of Seelos, Raj Mehra said, “Today’s announcement marks the most significant event so far in Seelos’ brief history. It is heartening to see that all intranasal doses were judged to be generally safe and well-tolerated, and the resolution of dissociative side-effect among all doses by the one-hour timepoint for this group mean affords that this therapy is truly differentiated, which enables Seelos to evaluate SLS-002 in indications beyond ASIB, such as first line MDD.”
Experimental studies suggest ketamine has the potential to be a rapid, effective treatment for refractory depression and suicidality. Back in 2019, the U.S. Food & Drug Administration approved Johnson & Johnson’s ketamine-derived nasal spray Spravato for treatment-resistant depression. The design of a double-blind, placebo-controlled Proof of Concept study is supposed to begin this fall according to the company. This is for SLS-002 for Acute Suicidal Ideation and Behavior in patients with Major Depressive Disorder.
Psychedelic Penny Stocks To Watch: COMPASS Pathways
The final company on this list is COMPASS Pathways. COMPASS is currently developing a psilocybin-based therapy to treat depression. If you’re looking online for a share price, you won’t find that yet. It has planned and filed for an IPO to take its drug to Phase 3. COMPASS has raised $100 million from investors. Compass wants to double its current fundraising total, by offering stock to investors via the NASDAQ.
COMPASS had this to say in its IPO filing “Therapies containing controlled substances may generate public controversy. Political and social pressures and adverse publicity could lead to delays in approval of, and increased expenses for, COMP360. We may face media-communicated criticism directed at our clinical development program. Adverse publicity from psilocybin misuse may adversely affect the commercial success or market penetration achievable by our investigational COMP360 psilocybin therapy.”
Famed investors and PayPal co-founder Peter Thiel is already backing COMPASS. He owns a 7.54% stake. What’s interesting is that Thiel is well-known for investing in controversial companies. However, he isn’t the only notable investor in this arena. Shark-Tank investor, Kevin O’Leary as well as cannabis figurehead, Bruce Linton have also jumped into these psychedelic waters.