Mushroom & Psychedelic Stocks Are Hot In 2021
While many traders are looking for the next batch of green energy penny stocks to buy, others have found potential elsewhere. In fact, something huge happened this month that could make psychedelic and mushroom stocks more mainstream. The Horizons Psychedelic Stock Index ETF (PSYK) was recently launched and will begin trading this week. This marks the debut of the first psychedelic stock-focused ETF. While traders in the US will be hard-pressed to find a way to trade the ETF, Canadian brokers are currently the only ones offering exposure to the ETF. Regardless, it has become a milestone in the growth of things like magic mushroom stocks.
This has become the latest “fringe” or “vice” industry closely compared to cannabis. Something we didn’t see during the early days of legal weed was both ETFs and listed stocks. When it comes to psychedelics, the medical nature has allowed companies to gain faster access to the market. Compass Pathways (NASDAQ: CMPS), for instance, paved the way with its Nasdaq listing last year. While it’s still a very young industry, the opportunities have begun blooming; no pun intended.
Those who are beginning to look into this industry will see a few similarities between psychedelics and cannabis. First, there are both psychoactive and non-psychoactive products. The latter focuses on a nutraceutical consumer-base. And while the medical applications are being developed, traders & investors alike are watching the roll-out closely. So which companies have gained ground recently, and what’s on the horizon? Here’s a list of magic mushroom and psychedelic penny stocks to watch right now.
Mushroom & Psychedelic Penny Stocks To Watch
- Havn Life Sciences (OTC: HAVLF) (CSE: HAVN)
- Numinus Wellness Inc. (OTC: LKYSF)
- MindMed Inc. (OTC: MMEDF) (NEO: MMED)
- Cybin Inc. (OTC: CLXPF) (NEO: CYBN)
Havn Life Sciences
Havn Life has been on our list of mushroom penny stocks to watch for months. Since it began trading on the U.S. exchange, the company has initially been at the center of attention, thanks to its board. In particular, its Chairman, Vic Neufeld, assumed the role last year and brought with him years of experience in founding companies like Aphria (NASDAQ: APHA).
If you’re unaware, Aphria was one of the big-name cannabis companies during the early days of the 2013/2014 cannabis boom. Aphria, under Neufeld’s leadership, saw its biggest period of growth while he was in the CEO position. Neufeld now takes a Chairman role in Havn and another emerging medical/recreational industry.
This week could be an interesting one to have a company like Havn on the list. Last week the company announced that it would be included in the First Psychedelics Exchange Traded Fund. The company’s progress to date has apparently turned the heads of at least those fund managers. Over the last few months, Havn’s focus has been on advancing its recreational products set for launch this year.
Havn is planning the official launch of its first line of nutraceutical mushroom products in Canada and has already announced a product listing agreement for product sales in select Nesters Markets in British Columbia. Given the timing of all of this, will HAVLF be one of the mushroom stocks on your watch list this year?
Numinus Wellness Inc.
Another one of the magic mushroom penny stocks we’ve followed for a few months is Numinus Wellness. Shares of the psychedelic stock have climbed from around 10 cents in August to highs of $1.93 just before the end of 2020. Now, LKYSF shares have begun climbing once again in 2021. Aside from industry sentiment moving things in the market, Numinus has also been busy executing its business plan.
Earlier this month, the company announced that it acquired the Orbitrap Exploris 120 mass spectrometer with Vanquish Flex Binary instrument. The importance is that the device will allow the company to continue research and development of Psilocybe mushroom related projects at its analytics and research lab.
“Acquiring the Orbitrap is a fundamental step forward in developing Numinus Bioscience’s first patent, significantly advancing Psilocybe Mushroom related psychedelic discovery research and accelerating our third-party psychedelic standardized testing capabilities.”Sharan Sidhu, Science Officer and General Manager, Numinus
With these latest milestones, LKYSF shares have managed to rally roughly 45% since the news was released. Something else to note during these early stages is that drug delivery and efficacy are a clear focus. Numinus Bioscience’s lab provides cultivation services, analytical testing, research & development, and ancillary services in psychedelics.
MindMed was one of the trailblazers for magic mushroom stocks. When we first reported on the company, it was fresh on the market after its IPO. It was also trading below $1 as attention had just begun turning toward psychedelic stocks. Fast-forward to this year, and MindMed stock is now trading over $3.50, continuing its push for market share.
One of the biggest advancements by the company to date came last week. The company began the first-ever clinical trial measuring and evaluating MDMA and LSD’s combination in the human body. The trial will be conducted at the University Hospital Basel Liechti Lab, in Basel, Switzerland.
President of MindMed, Dr. Miri Halperin Wernli added, “I believe that when LSD and MDMA are taken together, they have exceptional potential to open a window into our mind which will awaken it to new levels of awareness by changing the fluidity of the state of consciousness, amplifying changed perceptions, intensifying emotions, and stimulating novel thoughts. It is like a gateway to a multidimensional universe.”
One of the more recently focused-on psychedelic stocks is Cybin Inc. The company specializes in psychedelic drug development and delivery mechanisms. Last year, the company completed Adelia Therapeutics Inc.’s acquisition, which has an array of therapeutic technologies, including delivery methods and therapeutic regimens. The company also has ownership in six patent applications.
In January, Cybin teamed up with Kernel to leverage Kernel’s platform to observe and quantify brain activity. Specifically, it will be able to do so in real-time during psychedelic experiences. As I explained above, during these early stages of growth, it will likely focus on R&D and how psychedelics interact with human subjects.
“Access to Kernel’s innovative Flow technology adds another exciting dimension to the investigative work that Cybin is doing to develop breakthrough treatments for mental health disorders such as depression and addiction…The ability to collect quantitative data from our sponsored drug development programs is potentially game-changing in terms of our ability to measure where psychedelics work in the brain in real-time, and how we ultimately design our future therapeutics.”Doug Drysdale, CEO of Cybin
Are Psychedelic Penny Stocks Worth It?
This is a young and emerging industry. I’d be willing to bet that the psychedelic industry as we know it today could look much different in 5-10 years. We’ve seen something similar from the cannabis industry. As such, some traders are speculating on the next steps for magic mushrooms. Will we see psychedelic compounds sold on grocery shelves anytime soon?
Most likely no, but Magic Mushroom dispensaries may be a different story. As this industry continues evolving, I’m sure we will see if all of this early R&D proves fruitful. For now, traders are banking on the idea that magic mushroom could be the next industry to mirror cannabis. Do you agree or disagree?