Psyched Wellness: Canaccord Pens “Future In Fungi Report”
Yesterday morning, Canaccord Genuity released a primer into five psychedelic companies that they “believe could mature into leaders within their respective fields, some as soon as this year.” To start off this note, Tania Gonsalves says that in the past year, 20+ psychedelic companies have gone public, and 14 existing companies have now pivoted to psychedelics. The basket of names has collectively raised over $800 million, and between them 100 – 150 clinical trials which use psychedelic compounds are commencing.
The five companies they outline in this note are:
- 1) Mindset Pharma (CSE: MSET)
- 2) Mydecine Innovations (CSE: MYCO)
- 3) Numinus Wellness (TSXV: NUMI)
- 4) Psyched Wellness (CSE: PSYC)
- 5) TRYP Therapeutics (CSE: TRYP)
What’s most interesting is that Canaccord has no formal rating or price target on these names and has not done a full initiation document. This looks like they are priming to release initiations on these names in the coming weeks.
Onto Psyched Wellness, the company is currently working on developing an edible mushroom called Amanita Muscaria to formulate and develop into OTC extracts, teas, and oral capsules. They can do this as this mushroom has never been classified as a controlled substance in Canada or the U.S.
Below you can see a picture of the Amanita Muscaria and what Psyched extracts will look like. The Amanita Muscaria is one of the most well-known mushrooms and has “been used in healing and restorative practices for centuries by both Shamanic tribes in Central and South America and by Siberian tribes in Northern Europe.”
The companies flagship product is a water-based extract that is intended to aid with stress relief. The company has currently contracted Flora Research to do the formulation and extraction work, while the mushroom is sourced from five different vendors between Europe and North America. Each supplier’s product is then tested with a different extraction method. As of now, the company has developed an extraction process that retains 91.4% concentration. Is it currently deciding on which commercial manufacturer to proceed with, which is expected to be announced in the next 6-12 months.
Onto regulatory approval, the mushroom in the U.S. is regulated as a dietary supplement which means they need to submit a new dietary ingredient notification to the FDA. Meanwhile in Canada, it is classified as a natural health product. This means they need to file a Product License Application be filed with the Natural and Non-Prescription Health Product Directorate.
For commercialization, the company will immediately rollout its extract product into the U.S. and Canada upon the receipt of approval. The company has stated it hopes to launch the product in the U.S. by the fourth quarter of 2021. After regulatory approval, the company expects to launch teas and capsules. The teas will be for sleep aid, destress, and relaxation, while the capsules will “promote mild euphoria and brain health.”
FULL DISCLOSURE: Psyched Wellness is a client of Canacom Group, the parent company of The Deep Dive. The author has been compensated to cover Psyched Wellness on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.
