Mind Cure Health (CSE: MCUR) is the latest issue to hit the Canadian Securities Exchange with the company set to complete its IPO transaction and commence trading Monday morning. The firm is focused on mental health and wellness, with its operations focused in both the functional and psychedelic mushroom space.
The stated mission of the firm is “to identify and develop products that ease suffering, increase productivity, and enhance mental health.” The company aims to tackle this mission through what it refers to as its “Five Spheres,” as it looks to treat what the firm refers to as “the profound distress of a world suffering from a mental health crisis.”
The five spheres established by Mind Cure is effectively the firms roadmap to success. These spheres, which include nootropic formulations, product discovery, clinical research, clinical research technology and formulation & supply, seek to provide a unique approach to conventional product development. The spheres establish Mind Cure’s strategic path of investigating pathways to diversify the commercial output of the firm.
The initial products expected to be brought to market by the firm are centered in the functional mushrooms market. The demand for these functional products is said to have rapidly increased over the course of the previous two year, with the space expected to continue to see high growth through the next several years with estimates pointing to a $37 billion market by 2025. With consumers focused on healthy foods, functional mushrooms are rich in antioxidants are said to potentially offer benefits in terms of cognition, digestion, and the immune system.
In terms of specific products, Mind Cure is currently in the process of developing organic adaptogens, which includes functional mushrooms. These products are expected to be sold both in-store and online under the banner of MoonBeam Mushrooms. Current product renditions provided on the company presentation include products that include Lion’s Mane, Reishi, and Turkey Tail mushrooms, with the intentional purpose of the products outlined as Focus, Energy, and Immunity, respectively for the three products.
Outside of functional mushrooms, Mind Cure states within its presentation that the company, “believes that the psychedelics including psilocybin represents a significant business opportunity and emerging sector for mental health.” To this end, it headlines itself as being “microfocused on microdosing,” with the firm focused on the sub-psychedelic use of psychedelics for the purpose of perceived benefits from microdosing, which research has indicated may result in an improvement in convergent and ivergent thinking that promotes cognitive flexibility.
The company itself is cashed up, having closed its initial public offering round on Friday in an over subscribed private placement that brought $2.99 million into the company’s coffers. The financing saw a total of 14,950,000 shares sold at a price of $0.20 per unit, with no warrant included in the offering.
Proceeds from the financing are to be used to build its senior operational and product management team, enhance and accelerate its digital marketing plant, and develop additional mushroom products while expediting its efforts to identify and evaluate new potential products for its functional mushroom line of products.
Following the completion of the financing, the new issuer has 45,220,000 issued and outstanding common shares, along with 2,796,000 options and 1,196,000 warrants. The total puts the issuer at a fully diluted share count of 49,212,000 common shares.
Mind Cure Health is expected to begin trading Monday, September 21, 2020, at an IPO price of $0.20 per share.
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As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.