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Psychedelic drug manufacturers are eagerly awaiting legalization in North America. Right now, Canadian and US health regulators have been researching and testing the impact of these advanced drugs.
Meanwhile, investors have shown a mild response to this budding industry, which could see cannabis stocks like heavy buying post-decriminalization. Psychedelic exchange-traded funds (ETFs) have already started getting nods from securities exchanges across North America. The first psychedelic ETF launched in January 2021.
Here are two psychedelic stocks to explore before they become an expensive buy:
Mind Medicine Inc. (MMEDF:US or OTCQB: MMEDF)
The biotech firm engages in research and development (R&D) of psychedelic therapies and medicines to address mental illness and addiction. It also expects to produce psychedelic substances such as Psilocybin, LSD, DMT, MDMA, etc.
The shares closed at US$ 2.28 on March 30, which has dropped more than half against its 52-week high of US$5.07.
It is up 406.66 per cent in one year, and its market cap stands at nearly one billion US dollars. However, the healthcare stock has plunged as much as 25.24 per cent year-to-date (YTD).
The company reported a total cash burn of US$ 24.2 million in 2020, including R&D and other operating costs. The company held an available cash amount of US$ 161 million as of March 30, 2021 and will use this working capital to establish a psychedelic drug technology-backed platform and support lined-up drugs production.
Source: Copyright © 2020 Kalkine Media Pty Ltd.
Numinus Wellness Inc. (TSXV:NUMI)
The Canada-based psychedelic solutions provider has been actively working towards its R&D in psychedelic-focused treatments. The firm has legal rights t0 harvest Psilocybe mushrooms to develop psychedelic medicines.
Its current share price is C$ 1.02 and a market capitalization of C$ 204.7 million. It is currently trading 58.37 per cent lower than its 52-week high of C$ 2.45 apiece (Recorded on December 15, 2020).
Its stocks have soared by 168.42 per cent in one year. However, it is marginally down by 4.67 per cent YTD. It has a favorable price-to-book ratio of 34, and its debt-to-equity ratio is 0.11.
In the first financial quarter of 2021, the medical research company held available cash of C$ 4.9 million, up against C$ 9,960 in Q1 2020.
