Psychedelic Archives - Green Market Report

Debra BorchardtAugust 16, 2022


Field Trip Health has changed its name to Reunion Neuroscience Inc. (TSX: FTRP)(Nasdaq: FTRP) and reported its fiscal first quarter 2023 results for the period ending June 30, 2022. Reunion reported expenses of $5 million and a net loss of $13 million. The increase in net loss from the prior year primarily reflected the company’s focus on investing in RE104 which recently began its Phase 1 clinical trial, as well as increased public company costs.

There are no revenues at this time. As of June 30, 2022, the company had approximately $52.3 million in unrestricted cash, cash equivalents, and short-term investments.

New Tickers

On August 11, 2022, The company completed its split of its Field Trip Discovery and Field Trip Health divisions into two independent companies. Field Trip Health, which is the clinic side of the company, was renamed Field Trip Health & Wellness Ltd. and has received listing approval from the Toronto Stock Exchange Venture under the new ticker symbol “FTHW”.

Field Trip Discovery, which is the drug research side of the company, was renamed Reunion Neuroscience Inc. and will remain listed on the NASDAQ Stock Market and Toronto Stock Exchange under the ticker symbol “REUN”. Immediately upon closing of the Arrangement, the Company consolidated its shares on a 5:1 basis, which is expected to cure the NASDAQ minimum bid price deficiency previously announced. The company said it also received approval from the Toronto Stock Exchange for Field Trip H&W to list on the TSX-V under the ticker symbol “FTHW”. The first day of trading for both companies under their respective new tickers is August 17, 2022.

Reunion Research

Reunion’s lead drug is RE-104 (previously known as FT-104) and it is a proprietary, novel psychedelic drug being developed for post-partum and treatment-resistant depression as a potential fast-acting antidepressant with durable efficacy. Reunion is also developing the FT-200 series, which includes compounds with the potential for more selective serotonin receptor activity with reduced psychoactivity for potential use in more chronic treatment paradigms and indications.

On July 21, 2022, announced successful first dosings in the company’s Phase 1 Clinical Study of its first novel psychedelic molecule, RE104 (formerly FT-104), being conducted in Australia. Reunion said it expects to report results from the study in the calendar fourth quarter of 2022 and is planning to seek FDA guidance on Phase 2 studies planned for 2023. During the quarter, the company was granted a patent for claims related to RE104 entitled, “Tryptamine Prodrugs”. The patent provides exclusive rights to Reunion until 2040 for the composition of matter, formulations, methods of use and methods of manufacture for a family of hemi-ester compounds of hydroxytryptamines, including Isoprocin.

Joseph del Moral, Founder and Chief Executive Officer of Reunion, said, “We are pleased to have successfully completed the split of Field Trip into two distinct companies – Reunion and Field Trip Health & Wellness. As independent companies, each will be laser-focused on executing their own strategic vision and investment priorities, and creating long-term value for their respective shareholders. The future is bright for both businesses and each is excited to continue developing and delivering innovative psychedelic-assisted treatment options.”

Adam JacksonAugust 2, 2022


Red Light Holland Corp. (CSE: TRIP) (OTC Pink: TRUFF) posted its yearly audit results that show the company to be in healthy standing as it looks to expand its reach in the nascent market. The company filed its audited annual financial statements and management discussion & analysis for the financial year ending March 31, 2022.

The psychedelics maker audit results posted over $2.3 million in revenue and gross profit of over $600,000 — resulting in a gross margin percentage of 26.6% during a fiscal year in which they also oversaw four acquisitions. Not included was the recent acquisition of two retail stores in the Netherlands. The company also has working capital of around $26.1 million in cash. Property and equipment were valued at $2.9 million with total asset values at $32.9 million.

The company bore net losses of $14.7 million and $0.04 per share, which it said was significantly influenced by “non-cash charges relating to the impairment of intangible assets and goodwill in the amount of $5.9 million and stock-based compensation of $3.2 million.”

“As you know, I love marketing and brand building; we will push even harder in the near future with impactful marketing strategies with the continued goal of Red Light Holland being the leader in the Rec and Tech psychedelic sector,” CEO Todd Shapiro said. “We continue to identify and analyze near-term acquisition transactions while remaining cautious with our spending habits.”

“Our financial position and liquidity remain strong, and the company currently has sufficient capital to fund its ongoing business development and future growth and expansion plans for the foreseeable future,” CFO David Ascott said. “The working capital as of March 31, 2022, is $25 million which includes $26.1 million of cash and cash equivalents. During the year, we recorded a non-cash impairment loss against the intangible assets and goodwill in the amount of $5.9 million. Through our acquisitions, we added tangible capital assets including a mushroom production facility in New Brunswick valued at $2.5 million.”


StaffJuly 14, 2022


Psychedelic venture capital firm Iter Investments has closed its successful round of funding on Fund I having raised over $20 million. The fund was launched in April 2021 with the goal of raising $20 million and is closing with over $20 million committed.

“Our mission has been and continues to be aiding entrepreneurs as they build great companies that use medical and scientific research to reimagine the health care industry’s approach to the underserved mental and behavioral health sectors,” said Robinson. “It has been a very successful year launching our initial fund and we have built incredible partnerships along the way. We are closely watching the emerging trends and research surrounding the psychedelics industries and are excited for all that the industry has to offer.”

Iter Investments said it has established an active portfolio of 16 companies with special access to several new investments on the horizon. Iter Investments’ portfolio consists of companies across the entire value chain, including suppliers of psychedelic active pharmaceutical ingredients, such as Psygen; drug discovery and drug development companies, including Psilera, Beckley Psytech, Clairvoyant, Reset Pharma, Apex Labs, Wesana, Awakn Life Sciences (OTC: AWKNF), and Freedom Bio; clinics including Awakn Life Sciences and Wesana; and technology and other supporting infrastructures, such as Tripp, aNUma, and Fluence.

The Fund I portfolio is also diversified across a wide range of compounds, including psilocybin, DMT, 5-MeO-DMT, MDMA, LSD, ketamine, psychedelic analogues, and new chemical entities, as well as a wide range of indications, such as alcohol use disorder, post-traumatic stress disorder (PTSD), cancer-related distress, depression, anxiety, gambling addiction, and behavioral health conditions.

Iter was founded by Dustin Robinson, the founding partner of one of the law firms in the psychedelic industry, in partnership with seasoned private equity investor Robert Velarde. Iter Investments has led several funding rounds and has a board seat on several of its portfolio companies. By taking board seats on several companies and deploying a diversified approach to its portfolio companies, the venture capital firm has been able to identify various synergies among its portfolio companies, proving Iter Investments to be a value-added investor for its portfolio companies.

Iter Investments also launched its own company Nucleus, which is a holding company for various media, data, and technology assets, including Psychedelic Invest, NeulyMatter AcademyPsyrise, and Particles.

“We have seen an incredible amount of investor interest over the past year, and combined with the continued progress in R&D and clinical trials, confirms our view of the great potential for the psychedelics industry,” said Velarde. “We’re looking forward to continuing to serve the funding gap between psychedelic drug research and mass commercialization while aiming to offer portfolio companies what we consider to be expert guidance to support their growth and success.”

Dave HodesJune 21, 2022


The stock market has been tough over the last month, as has most of the U.S. economy.

The Federal Reserve raised interest rates by 0.75 percent on Wednesday, June 15, and that reduces the amount of money in the economy. 

Besides mortgages, rising interest rates impact the stock and bond markets, credit cards, personal loans, student loans, auto loans, and business loans according to Forbes. It’s the third hike this year and the largest since 1994. The move is aimed at countering the fastest pace of inflation in over 40 years. Another rate hike could come in July, according to Fed Chairman Jerome Powell.

The stock market reacted instantly. For example, GE’s stock price was down on Friday, June 17, from $69.64 Wednesday to $64.96 a share. Amazon was down from $108.36 a share on Wednesday to $102.42 a share on Friday. Apple was down from $136.61 Wednesday to $129.54 on Friday.

Many of the psychedelic stocks dipped briefly as well, but appear to be recovering as of this writing, basically going against the latest economic trend… even as most of them still are not showing any significant revenue yet.

What’s driving the ability of some psychedelics companies to survive—even thrive—amidst this economic turmoil: Cash on hand? Results of clinical trials? Insider buying? Yes, yes, and yes.

Let’s take a look at three examples:

  1. Good cash runway. Atai Life Sciences (NASDAQ:ATAI). Its stock was up 4.5% percent on June 17. Analysts are not worried about this company that finally showed a bit of revenue as of March 2022, in part because of a strong cash runway. A company’s cash runway is calculated by dividing its cash hoard by its cash burn. Atai reported $335 million in cash that it held as of March 2022. “Importantly, its cash burn was $73 million over the trailing twelve months,” analysts reported. “So it had a cash runway of about 4.6 years from March 2022. A runway of this length affords the company the time and space it needs to develop the business.”

The company is also showing strong execution of its clinical pipeline, anticipating several clinical milestones in 2022 and beyond, including data from the Phase 2 proof-of-concept study of a potential at-home-use therapy in treatment-resistant depression. The company is also expecting other Phase 1 and Phase 2 results on other compounds this year. “It’s a testament to our phenomenal team that we anticipate having 10 compounds in the clinic,” Srinivas Rao, chief scientific officer and co-founder of Atai, said in a May 16th press release.

  1. Clinical trial moves. Cybin, Inc. (NEO:CYBN) (NYSE:CYBN) stock was up 5 percent on June 17. According to Tip Ranks, based on three Wall Street analysts offering 12-month price targets for Cybin in the last 3 months, the average price target is $9.00 with a high forecast of $10.00 and a low forecast of $7.00. The average price target represents a 1453.06% change from the last price of $0.58. Analysts rate it as a strong buy.

But what is really driving this analyst frenzy is Cybin’s announcement of the first human clinical trial of their psilocybin compound—and it’s a big deal. 

On May 31, Cybin announced an investigational new drug application to the U.S. Food and Drug Administration for its Phase 1/2a first-in-human clinical trial evaluating CYB003 sometime in mid-2022, a proprietary deuterated psilocybin analog being developed for the treatment of the major depressive disorder.

The Phase 1/2a trial is a randomized, double-blind, placebo-controlled study evaluating people with moderate to severe major depressive disorder. Human subjects will receive two administrations (placebo/active and active/active) and a response/remission will be assessed at Week 3 (after a single dose) and at Week 6 (after receiving a second dose).

  1. Insider buying. Seelos Therapeutics (NASDAQ:SEEL). It’s stock was up 5.69 percent as of June 17. The stock is rated a buy or strong buy by analysts

Analysts also report that multiple insiders are buying stock, sending out a positive message to the company’s shareholders. For example, in the last twelve months, the biggest single purchase by an insider was when Founder Raj Mehra bought $57,000 worth of shares at a price of $0.85 per share. So it’s clear an insider wanted to buy, even at a higher price than the current share price (being $0.64). “While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company’s future,” according to analysts at Simply Wall Street. “In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.”

Dave HodesJune 8, 2022


You’ve read the predictions, you’ve heard the buzz—psychedelics are about to change the world of mental health treatment. 

They promise no more mental health pharmaceuticals that numb out the brain, or that help mask the side effects. No more taking chemicals for the rest of your life that are not body-friendly, with the caveat that psychedelics can also cause brief, uncomfortable events during treatment on their way to profound, life-changing results.

Want to jump into these turbulent waters of starting up and building a psychedelics business developing drugs for treating mental health conditions? Here are five ways to go about it.

  1. First, get a million dollars. Or even $2 million dollars. Or better yet, $5 million. Yes, this business is expensive. Getting startup money from a venture capital investor is no simple matter because the payoff for them is still relatively uncertain and, at best, years away. They have to be informed gamblers, and you have to have a convincing business plan or model for your business where you can show all the expected results of what their money is buying—which for now, is simply the research and development structure for your company, including clinical trials which can take years and cost millions of dollars to complete. Clinical trials follow a typical series from early, small-scale, Phase 1 studies to late-stage, large scale, Phase 3 studies. The FDA can put a hold on a clinical trial if they don’t like how it’s proceeding. That being said, the top 11 VC firms invested about $139.8 million in 2020-2021, according to Business Insider. So apparently, even among the clinical trial uncertainty and the sometimes slow-moving FDA approval process, they clearly see a path to profitability.
  2. Find and sign up the best medical minds you can afford. It’s all about the molecule, man. Identifying and developing small molecules and macromolecules that might help cure illnesses and diseases is the core activity of pharmaceutical companies. There are good scientists out there who see the possibilities of psychedelics for treating mental health. What you want is a scientist with a serious pedigree who you can afford. Someone who has done a lot of work already in psychedelics through some academic facility. Someone who still has a good working relationship with that institution. You need a name to hang your expectations on, and a molecule your medical team can find and patent. And yes, the medical team people are not cheap either. You may be able to work out a sort of shared development deal with the medical director or their team where they continue on with their work at a university but still provide you the name and assistance you want as you build your company. One example is Matthew Johnson, the professor of Psychiatry and Behavioral Sciences at Johns Hopkins University, who is one of the world’s most published scientists on the human effects of psychedelics; was 2019 president of the Psychopharmacology and Substance Abuse Division of the American Psychological Association; and is currently president of the International Society for Research on Psychedelics, an organization he founded with colleagues. He is a clinical advisor for MindMed (NASDAQ: MNMD), a clinical-stage biopharmaceutical company developing novel products to treat brain health disorders that is one of the top five psychedelics companies to watch this year.
  3. Understand your risks as a startup in an emerging industry. There are more and more startups getting into psychedelics now. Some will succeed. Most will fail. The failure rate is high for any small business, let alone one in a challenging emerging market. As of 2021, 20 percent of small businesses failed in the first year, 50 percent within five years, and 65 percent within 10 years. Some fail after multiple clinical trials that didn’t quite work out. But their research has been done and maybe another startup can buy that company’s research as a sort of jump start for their new business. Do your research about strategies for success in this industry. And remember: Many mainstream pharmaceutical companies are still sitting on the sidelines waiting out more regulatory approvals when it comes to psychedelics. If these guys are hesitant, that may be your clue to wait out developments as well before jumping in.
  4. Carefully decide if and when you want to go public. Once a company decides to move forward with an IPO, it must work with an underwriter (typically a bank or multiple banks) to create a prospectus, according to The Motley Fool. A prospectus is a detailed financial report designed to help potential investors make informed decisions. One of the disadvantages of going public is that it takes six to nine months to go through the process, and it costs money to go through with an IPO from financial service and underwriting fees to filing fees. Then once it goes public, the company has to publish their unvarnished financial information, and answer to shareholders, which can create different management headaches.
  5. Don’t give up. It’s a bumpy road. You are going to experience failures. You are going to experience poor management decisions. This is just the way it goes with a novel therapeutic based on an illegal substance in an emerging market. There are many different state and federal laws to work with, and a developing regulatory environment that could take an unexpected turn and put your business at risk. You will need to prepare for these and other growing pains that are common in emerging industries. Seek legal help to build in a safety net. And always, always protect your patent and any related intellectual property which is easier said than done. Some psychedelics were criminalized for decades, the U.S. Patent Office does not have the personnel with expertise in the field, increasing the likelihood of granting meritless psychedelic patents, according to an essay in the Harvard Law Review. And because Indigenous communities pioneered many aspects of modern psychedelic therapies, their patenting by Western corporations may promote biopiracy, or the exploitation of Indigenous knowledge without compensation. Plus, the control of psychedelics by a small number of companies may stifle innovation and reduce access to these therapies.

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