Growth Stocks: 3 Psychedelic Players To Explore

Summary

• The Vancouver-based Numinus’ stock has yielded 200 per cent returns in the last three months.
• The Canadian Securities Exchange (CSE)-listed Psyched Wellness’ shares have also delivered 200 per cent growth in one year.
• Newly launched psychedelic ETF could also offer some exposure to life sciences firms that engage in psychedelic research and development.

Scientists and scholars are researching the effect of psychedelics on a range of mental issues from depression to anxiety, and also analyzing their side-effects. There are a handful publicly listed therapeutic companies that are engaged in psychedelics’ medicinal potential.

Psychedelic firms started going public a couple of years ago. This trend accelerated with a pot-friendly president across border in south and hopes of cannabis legalization in Mexico.

On top of that, launch of world’s first Psychedelic Stock Index exchange-traded fund (NEO:PSYK) by financial services company Horizons, proves things are getting hot in the industry.

This is the right time to explore probable opportunities is this new and upcoming space.

We did some digging and came up with three Canadian psychedelic stocks that could be big players in the future amid conducive market circumstances and supportive regulatory policies.

Let’s dive right in!

Numinus Wellness Inc. (TSXV:NUMI)

This company carried out psilocybin extraction research from Psilocybe mushrooms in the first quarter of 2021, ended on November 30, 2020. The company also entered a partnership with Optimi Health to advance its R&D of psychedelic products in Q1 2021.

Numinus’ stocks have increased by 21.5 per cent this year. Its shares are up almost 200 per cent in the last three months.

Psyched Wellness Ltd. (CSE: PSYC)

The health supplements provider develops organic and medicinal mushrooms for human health and wellness. The scrips surged by 12 per cent on January 26, after nearly 3 million shares changed hands on the back of the new ETF index launch.

 The Toronto-based company’s shares have soared nearly 200 per cent in one year and have returned 33 per cent year-to-date (YTD).

It has a total of 105.5 million listed shares outstanding, with a P/B ratio of 7.60.

The company announced on January 20 that it has filed a trademark request for Amanita Muscaria Extract-1 (AME-1), an extract of mushroom, with the United States Patent and Trademark Office (USPTO). 

Nova Mentis Life Science Corp (CSE: NOVA)

Another Canadian Securities Exchange-listed company, Nova Mentis Life Science, has also been included in the Horizons Psychedelic Stock Index ETF.

The Vancouver-based company operates through its subsidiary to study the effects of psilocybin for obesity and diabetes to get Health Canada’s approval.

Nova stocks improved by over 2 per cent on January 26. It has returned over 11 per cent in one year, with a P/B ratio of 1.818.