TDR’s Top 5 Psychedelic Developments For The Week of June 22
Welcome to TDR’s review of the Top 5 psychedelic stories of the past week. Aside from presenting a synopsis of events, we provide commentary to break down the significance of each to investors. TDR is committed to maintaining in-depth market coverage of the most newsworthy events the psychedelics space has to offer.
5. New Poll shows a large majority of Canadians approve of legal access to Psilocybin for terminally-ill patients
A new poll indicates that 59% of Canadians approve the use of psilocybin mushrooms for terminally ill patients. The poll was conducted with an online sample of 1509 Canadian adults over 2 days in June 2020, and the results have been weighted based on age, gender and region to be representative of all adult Canadians.
TDR: Although online samples are far from the gold standard in polling, it’s clear attitudes towards psychedelic-based medicines is experiencing profound public support. It will be interesting to gauge whether similar favorable attitudes translate on the recreational side in the months and years ahead. But for now, the public clearly endorses psilocybin medicines in select therapeutic use cases.
Funded by $26.9 million from the U.S. Department of Defense’s Defense Advanced Research Projects Agency (DARPA), a new project announced this month “aims to create new medications to effectively and rapidly treat depression, anxiety, and substance abuse without major side effects,” according to a University of North Carolina School of Medicine press release (original press release June 15, 2020).
TDR: Although the press release was first issued the week prior, Marijuana Moment brought it to the mainstream this week.
Backed by significant government funding and leading field researchers administering the project, this endeavor will accelerate advances made in the psychedelics space. At the very least, it signals the U.S. government is taking this field of study very seriously. The mainstreaming of psychedelics has arrived at the highest reaches of U.S. public/private partnerships.
3. Healthcare company Numinus looks to address mental health and addiction with psychedelic assisted therapy
Numinus Wellness Inc (CVE:NUM) (OTCMKTS:LKYSF) is an operating company at the forefront of the transformative change in addressing the growing prevalence of mental health issues and the desire for greater wellness. The company’s unique growth platform includes a testing and research facility that can support the emerging market of psychedelic therapies to supplement existing options in addressing mental illness, addictions and PTSD, as well as a fully integrated wellness centre model that they aim to scale globally.
TDR: Although this piece is an advertorial (non-news related), it signals that leading public psychedelic companies are allocating sizable marketing dollars to get the word out. The additional investor outreach should be price action supportive in conjunction with positive business advancements. Depending on the size, length and content mix of the campaign, these outlays can run well into $000,000s.
A quick search of the Financial Post reveals Numinus’ campaign has just begun.
Mind Medicine Inc (OTCMKTS:MMEDF) is developing technologies and analytics to personalize psychedelic therapy experiences for individual patients. The technology aims to optimize the dosing of MDMA, LSD and other psychedelics based on a patient’s profile. The R&D is taking place in collaboration with the University Hospital Basel’s Liechti Lab, the leading research center focused on the pharmacology of psychedelic substances.
TDR: With 5 press releases issued in the month of June alone, MindMed’s news cycle remains active this month. With a plethora of clinical and pre-clinical compounds in various trial stages, we believe the news cycle could remain active for some time. This could in turn help support MMED’s share price, which remained flat on the week but rose ↑15.55% trough to peak.
1. Trading in Champignon Brands Suspended on the CSE; Falls Sharply on OTC Exchange
CSE Symbol: SHRM (all issues); Reason: Failure-To-File Cease Trade Order (CTO)
Halt Time (ET): June 22, 8:00 AM
TDR: Due to multiple instances of filing deficiencies surrounding several recent acquisitions, the B.C. Securities Commission (BCSC) slapped a Failure-To-File Cease Trade Order in the stock on June 19. On Monday, the IIROC announced that all issues in all jurisdictions would cease trading until filing requirements were up-to-date to the satisfaction of regulators. The company has until July 6 to provide a written response to the BCSC.
However, Champignon Brands remained open on its American OTC listing—and the results were not pretty. SHRMF plunged ↓24.02% or US$0.158/share ($0.50) in Monday’s first post-CTO session. SHRMF did stabilize at basic April support after its initial thrust lower to close out the week at $0.55/share. Amazingly, the stock has cratered ↓68.20% from its peak following a closing high of US$1.73 registered on May 19.
For now, it appears the stock is taking a breather at notable price support spanning its April consolidation period. Investors are hoping Champignon stock can reclaim lost ground should it get its filing in order in or around its anticipated July 6 correspondence date with the BCSC.