A Blooming Opportunity In Psychedelics Has Investors Looking For The Next Unicorn
Few times are we given an opportunity to witness something that changes the face of society. More times than not, you see companies evolving already created products, ideas, treatments, therapies, and the like. But think about it. When was the last time an entirely new industry was created?
Not only that, but think about the last time a brand-new industry was created and boomed. We call these “Unicorn Industries” for the simple fact that there’s nothing like them! These “unicorns” have been responsible for some of the biggest wealth opportunities in history.
Probably the most recent “Unicorn Industry” came with cannabis legalization. It generated some of the biggest wealth-building opportunities in our lifetime. No other period in the modern economy has such an event taken place nor has growth been experienced so quickly.
While there are still plenty of opportunities trading marijuana stocks, the market leaders who planted their flag early, invested smartly, and were first to the table saw the biggest return. Will we ever see such an opportunity again or is it time to find the next upcycled “tech idea”?
Keep Reading Below For More Info …
A few years ago, we got an introduction to the legal cannabis industry. Once thought of as a fad, pot has become a multi-billion-dollar market demanding the attention of major funds and, yes, leading blue chips like Constellation Brands, Altria, & Molson Coors. However, we’re beginning to hear whispers of some famous investors now positioning for the next breakthrough industry. Coincidentally, it includes many of the first movers in cannabis!
- Peter Theil, PayPal Co-Founder
- Kevin O’Leary, Founder of O’Shares & Infamous Mr. Wonderful on Shark Tank
- Bruce Linton, Former CEO of Canopy Growth Corp.
- Mike Novogratz, Billionaire Investor & Ex-Hedge Fund Manager
This is just naming a select few who’ve begun plotting a course for investors…BUT….
This Could Be Just the Beginning for Psychedelic Stocks & Here’s Why
What was the significant factor for making money with a unicorn industry? Being early!
The fact that the cannabis boom produced thousands in percentage gains means that there is likely a huge focus on what’s next. Investors are inherently thirsty for the next big boom.
With the opioid crisis, there’s a dire need for alternative medicine focused on mental health. This has sparked blooming interest in advancing psychedelics used in a controlled setting. There are also early adopters of decriminalization of magic mushrooms in places like Denver, Santa Cruz, and Oakland in a novel directive favoring psychedelic medicine.
Citing the initial marijuana stock boom, psychedelic penny stocks are creating a similar type of buzz. This time around, however, investors appear to be more keen to weigh hype and true fundamentals. There’s more of a strategy right now, investing in companies like these as compared to the mad dash and blind buying of marijuana stocks a few years back.
So it makes sense that investors are searching for early-stage opportunities in the same way as they did during the early days of legal cannabis. Keep in mind that those first to market had opportunities to see companies like Canopy Growth, Aurora, Aphria and many others rally from mere pennies to over $50 in some cases.
Two Market Opportunities Set For Disruption
You can’t just look at this from the perspective that “magic mushrooms” are the next “marijuana”. We’re talking about a much larger opportunity here that impacts two key markets set for disruption.
We discussed the opioid epidemic earlier. Specific to the pharmaceutical market potential of alternative medication, Right now, the studies focusing on psychedelics are targeting mental health concerns, primarily. We’re talking about a market (central nervous system therapeutics) worth nearly $130 billion by 2025.
Specific indications for psychedelic used in medicine include things like anxiety, ADHD, depression, PTSD, and even substance abuse. Quite possibly no other time than the present has mental health become such a focus. The COVID-19 pandemic has cut off physical contact across the globe. While virtual options are available, the future ramifications are still yet to be seen as this pandemic continues.
New research has pushed for further development of psychedelic compounds for producing more effective mental health treatment options than the pharmaceutical products currently in use. With the FDA granting Breakthrough Therapy Status for things like psilocybin and ketamine, the floodgates could be wide open right now for early adopters and first-movers.
Natural Health Products
Aside from the medical side, we’ve also got a whole new opportunity to consider: natural health products. The sheer market size for functional, nutraceuticals & natural health products is growing and set to continue this course for the foreseeable future.
Research And Markets confirmed this year that the global nutraceutical market size is projected to reach $722.49 billion by 2027. Rising awareness regarding calorie reduction and weight loss is expected to promote the application of nutraceuticals, which, in turn, will have a substantial impact on the industry growth.
Growing trend among consumers to alter dietary habits is likely to boost the demand for nutraceuticals. This includes a sharp focus on things like higher bioavailability for better absorption and, in turn, a higher quality outcome. The products range from mental focus and mood enhancement supplements to nutraceuticals to help with stress and anxiety. All of which Havn addresses as we’ll discuss below.
Another 2,200% Opportunity For Investors In The Newest Unicorn Industry?
Which leads us to one of the big reasons that Havn Life Sciences Inc. (OTC: HAVLF) (CSE : HAVN) could stand to rival its competition. The company is lead by the same CEO that took Aphria Inc. from an unknown penny stock in 2014 to a household name in cannabis just a few years later. Havn Executive Chairman Vic Neufeld was the CEO of Aphria for 5 years from 2014 to 2019.
Prior to this, he served as CEO at Jamieson Laboratories, Canada’s largest manufacturer and distributor of natural vitamins, food supplements, herbs and botanical medicines. He spent the better part of 21 years leading Jamieson to increase its market share to nearly 30%. Neufeld led the company from $20 million in annual sales to over $250 million while also expanding Jamieson’s distribution network to over 40 countries, building it into a globally recognized brand name.
Then you’ve got Aphria. The true test of leadership is designing a model that works. It’s not just building a single business. It’s taking a growth model and repeating the process. Following the immense growth from Jamieson, Neufeld began his stint at Aphria. He not only signed some of its most significant deals, but its market cap also drastically increased in value.
Just to give you some perspective, at the end of 2014, Aphria’s stock was trading around C$1. At its height, shares traded at nearly C$25. Those who acted early, could have potentially taken home a windfall of more than 2,200% as Neufeld took the ball and ran with it. He was leading the company as it made its arrangements with Health Canada, he understands the medical landscape of global health markets, and, most importantly has already done “it”.
They say to find leadership with that “it” factor and Neufeld’s 2,200%+ growth is just one small sign of that. Now he’s grabbed the reigns of Havn Life Sciences aiming to take on the newest unicorn industry.
But it’s not just Neufeld holding a winning record of success in a unicorn industry. CEO Tim Moore has his own history of building billion-dollar businesses. Moore was the former CEO of Green Growth Brands. He took the company from IPO through to the beginning of 2019, leading the company to a nearly $1 Billion market cap. EVP Susan Chapelle is highly regarded in the cannabis arena as well. Her expertise in the healthcare sector brings a wealth of industry expertise and leadership experience.
Havn’s Chief Scientific Officer, Gary Leong is also Aphria & Jamieson alum. He was the former CSO of both companies and oversaw everything from quality control & assurance to research and development. Aside from these notable names, the company has a stacked deck of executives and directors with direct industry expertise and track records of success.
The fact that Havn Life Sciences Inc. (OTC: HAVLF) (CSE : HAVN) has built this team is one thing but the idea that the vast majority were integral in carving out the early framework of the legal cannabis market – the last unicorn industry – should also speak to the potential of Havn Life Sciences.
The Opportunity To Become The Gold Standard of Psychedelic Supply
We’ve learned a lot from the early days of cannabis. Now, investors are keen to the fine details of true industry disruptors. Where some psychedelic companies are simply growing mushrooms and selling an inconsistent product, Havn Life Sciences Inc. (OTC: HAVLF) (CSE : HAVN) has gone above and beyond to create a gold standard of psychedelic and new age, natural health products.
The company is focused on two, clear initiatives that it has already begun executing on, Havn Labs and Havn Retail.
Through Havn Labs, the company aims to standardize the supply of psychedelics to support new therapies and it has already received its first Health Canada license. Meanwhile, its Licensed Dealer status will be secured by 2021 and will permit the supply and sale of regulated compounds. Since the only thing available right now are synthetic compounds, Havn Life, through this license, has the ability to isolate and understand the roughly 200 compounds that create that “magic mushroom” effect.Then, much like extraction methods for things like THC or CBD distillates, Havn can then deliver these compounds to companies, researchers, and institutions. The important part to remember as someone looking at this industry now is that this practice is still very unique making Havn Life a key player when it comes to this market.
Since it has already been granted a Section 56 exemption by Health Canada, HAVN Labs will be able to develop formulations & conduct R&D prior to its Dealer status. A GMP laboratory will be dedicated solely to growing and developing extraction methods for yielding psychoactive and psychedelic compounds. These extraction methods from exemption will be the first methods on psilocybin ever, according to the company!
Validation Is Key: New Deals Pave The Way For Havn
Furthermore, Havn Life has submitted an application to Health Canada to obtain a Controlled Drugs and Substances Dealer’s License for Psilocybin and Psilocin. This will be a cornerstone to Havn Labs’ ability to sell naturally-derived psilocybe spp compounds, under the Controlled Drug and Substances Act, to universities, researchers and companies.
Havn Life has already begun supplying companies with psychedelic compounds. In October of 2020, the company inked a deal with Revive Therapeutics Ltd. supplying the company with psychedelics for use in its investigational new drug enabling studies and future clinical trials under the FDA guidelines. Currently, Revive has focused on expanding its Psilocybin-based therapeutics for mental health and abuse disorders.
This is not just a “big deal” for the company but for the industry as a whole. Since we’re talking about a potential “Unicorn Industry”, every early “deal” has a much bigger resolve. In this case, Havn Life’s deal with Revive marks one of the earliest validations for naturally-derived psilocybin. This unprecedented move between these companies could lay the groundwork for advancing the standardization of compounds for researchers as health and wellness takes a positive stance on psychedelic alternatives.
Through Havn Retail, the company aims to develop unique formulations delivering natural health benefits through products that are designed to increase bioavailability for quality outcomes. Furthermore, the functional foods aspect of “magic mushrooms” has begun taking on a life of its own. The fact of the matter is this: the broader industry called mycologicals is set for massive growth right now.
Put simply, this is the study of fungi, but there’s so much more to it and understanding that could help identify early opportunities in the new sector. Mushrooms aren’t just something to consume as food products. The uses expand far beyond and include health & beauty, in addition to medical and legal recreational use of psychedelics. Global mushroom market value is expected to exceed $50 billion in the next seven years due to growing mushroom demand in the recent past.
As a nutraceutical application, Havn Retail will focus on microdosing, which could become a true market disruptor. The company has a unique IP and custom formulations all focused on microdosing products. Havn Life is in the final stages of product development and has submitted formulations for its natural health products to Health Canada. The aim is to have products available to nutraceutical retailers by Q1 2021, which is rapidly approaching.
The important part to note, specifically about Havn Retail is that both Vic Neufeld and Gary Leong were integral parts of building up multi-hundred-million dollar enterprises on more than one occasion, that were focusing on natural health. Will the third time also be another charm for these seasoned entrepreneurs?
Already Gaining Industry Acclaim
In early Q4 2020, Havn Life expanded its international footprint. The company joined the Drug Science Medical Psychedelics Working Group consortium. The working group was launched by Drug Science, UK’s leading independent scientific body on drugs that provides an evidence base, free from political or commercial influence, which creates a foundation for sensible and effective drug laws, by delivering, reviewing and investigating scientific evidence relating to psychoactive drugs.
A consortium of Drug Science experts, industry partners, patient representatives and policy makers, the group aims to break the barriers of 50 years of medical censorship by creating a rational and enlightened approach to psychedelic research and clinical treatment.
The benefit here is that it opens up the company to some of the foremost in the psychedelic research community. Havn will now have the unique ability to work with world call researchers dedicated to developing numerous approaches to advancing psychedelic compounds and treatment platforms.
A First Of Its Kind?
Havn announced the first preclinical study to focus on the effects of psilocybin on the immune system. The study is in partnership with Dr. Geoffrey Bove, Dr. David Mokler and Susan Chapelle, eMBA. Havn will start this preclinical study next quarter. This study is the first step required to file an application for the development of psilocybin delivery methods that could address inflammatory and immune diseases such as arthritis.
“We intend to pursue the filing of an FDA application for psilocybin-based delivery methods, which may ultimately lead to new drug discovery. To date, minimal research has been done on psilocybin and its effects on human immunity, which is an area that has become more and more important.”Vic Neufeld, Executive Chairman of Havn Life
This will be the one of the first studies to quantify the effects of psilocybin on the immune system and will also compare the differences in how psilocybin affects the immune system between the sexes.
A Market Built For First Movers
As we’ve discussed, a true unicorn industry has several very important characteristics that make it truly a “Unicorn”:
- Novel Approach To An Unmet Need
- Pent-Up Excitement, Demand, & Speculation
- Big Money Bets By Savvy Investors
The last unicorn industry was cannabis and for 5 straight years, the sector continued going higher as new barriers were broken, new products were created, and new opportunities were opened up. While marijuana stocks have had their time in the spotlight, the industry itself has evolved to something more akin to the large industries we’re used to.
With the onset of psychedelics has now begun to carve out something that looks eerily similar to the early days of medical and recreational marijuana. But the path is still yet to be charted. Companies like Havn Life Sciences Inc. (OTC: HAVLF) (CSE : HAVN).
Meanwhile, the addressable markets for medical access to psychedelics are in the hundreds of millions. According to the World Health Organization estimates as of 2020, more than 264 million people of all ages suffer from depression. Meanwhile, 1 in 13 people will develop PTSD at some point in their life. Considering many other mental disorders that psychedelic researchers are working to address, this could be a massive market opportunity.
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Why Havn Life Sciences Inc. (CSE : HAVN)
- There hasn’t been a market opportunity like this since the last unicorn industry in cannabis. The market boom that ensued within the first few years resulted in companies growing by thousands of percentage points.
- Havn Life Sciences Inc. (OTC: HAVLF) (CSE : HAVN) has built out two, distinct approaches to capitalizing on multiple facets of this rapidly expanding industry, still in its infancy.
- Havn Life Sciences Inc. (OTC: HAVLF) (CSE : HAVN) has secured leadership from one of the trailblazing companies that helped put the cannabis industry on the map and were integral to its overall growth.
- The emerging market for alternative medicine in mental illness has triggered a multi-million-dollar investment rush into psychedelics with investment from Wall Street billionaires like Kevin O’Leary, Peter Thiel, Mike Novogratz & former cannabis industry trailblazers like former Canopy CEO Bruce Linton.
- There are still only a few pure-play psychedelic companies in the space right now. Armed with proven leadership & a clear path to market, Havn Life Sciences Inc. (OTC: HAVLF) (CSE : HAVN) could establish itself as the gold standard in psychedelics.
- Havn Life Sciences Inc. (OTC: HAVLF) (CSE : HAVN) leadership has a proven track record not only in trailblazing a new industry with Aphria but also building a multi-hundred-million dollar nutraceutical enterprise in Jamieson Laboratories.
Disclaimer: Pursuant to an agreement between Midam Ventures LLC and Havn Life Sciences Inc. (HAVN), Midam has been paid $200,000 for a period from October 14, 2020, to November 25, 2020. Midam has been paid an additional $200,000 and extended its period of coverage to January 1, 2021. We may buy or sell additional shares of Havn Life Sciences Inc. (HAVN) in the open market at any time, including before, during, or after the Website and Information, to provide public dissemination of favorable Information about Havn Life Sciences Inc. (HAVN).