Source – Report on Psychedelics
We found this of interest because for those of us with longer memories will remember the same ups and downs in the cannabis sector 2014-2017
Roller-coaster ride for publicly-traded psychedelic companies
High risk, high reward investments are tempting, but certainly not everyone’s cup of tea. It’s been a wild ride for psychedelic companies after going public on the Canadian and US stock exchanges.
- UK-based Compass Pathways (NASDAQ: CMPS) hit a peak value on the US stock exchange, around $60 USD in December 2020.
- So far it has been the best indicator of how a psychedelic company could perform on a larger market. It’s now trading 23% down year to date (YTD), and priced around $36.
- New York-based MindMed (NASDAQ: MNMD) went public last year on Toronto’s NEO Exchange.
- After seeing a 90%+ surge in value from Friday to Monday, it’s now plummeted back down near to last week’s price, below $4 USD.
- Germany-based ATAI Life Sciences has benefited from a lot of press after publicly being backed by Peter Thiel.
- They’ve now filed for an initial public offering (IPO) with the US SEC in order to raise $100 million USD. The listing date, ticker symbol and price remain unknown at the time of this publication.
The transition from 2020 to 2021 has been one of the most volatile 12 month periods in trading history, since the Great Depression. Unlike cannabis, psychedelic products face additional challenges, as they may always require medical supervision. Psychedelic companies will continue struggling to gain acceptance from venture capitalists and retail traders due to a difficult legalization process with the DEA and FDA.