Psychedelic Deal Report

You may have noticed psychedelic stocks have had  a pretty good few weeks, which has led to cash being poured into the sector and more deals getting made. Let’s start the week with a recap. 

MagicMed Industries Moves Towards Market

MagicMed is getting ready to be traded on the CSE where they have the ticker MGIC reserved. The company, who specializes in developing IP for drug development partners, raised $8.1 million CAD on a brokered and non-brokered basis by Gravitas Securities Inc, The Conscious Fund acted as a lead investor. 

Seelos Raises for Ketamine Treatment

Seelos (NASDAQ: SEEL) raised a gross of $10 million USD in a private placement on a convertible note, led by existing investor Lind Global Asset Management II. The cash will go towards programs including SEEL’s  acute suicidal ideation and behavior trial for SLS-002, the company’s intranasal ketamine solution. 

Toronto Psychedelic Fund Raising Fund II

Noetic Funds, a psychedelic fund created by Grey House Partners GP Inc. in Toronto, has announced plans to launch Noetic Fund II. The first fund has $30 million USD in assets under management and an impressive portfolio. They say Fund II “will be significantly larger and of an institutional caliber.”

Psychedelic Fund Launches in The UK

A new psychedelic fund is sprouting up in the UK, Neo Kuma Ventures, founded by Sean Mclintock who previously invested with ATAI Life Sciences. The new fund hasn’t set a target amount, and will be fundraising through the first half of next year, they say millions of pounds are committed . 

Neo Kuma claims to be Britain’s first psychedelic fund. RoP readers can you fact check this?

MAPS Clears Phase III Hurdle

MAPS has announced that one of their Phase III studies has completed an analysis demonstrating the treatment to be statistically significant, therefore making the study successful. 

Background: The MAPS study was evaluating the treatment of PTSD with MDMA assisted psychotherapy across 15 study sites (two in Israel, two in Canada, and 11 in the United States).

  • 90 people participated in the study which included a control group that the statistical evaluators were blind to. 

Funding: MAPS, a not-for-profit organization, has raised $100 million in donations since its founding. The organization recently completed a $30 million Capstone Challenge led by Tim Ferris, with the successful completion of the Phase III study MAPS is setting out to raise an additional $30 million. 

Road Ahead

MAPS says that they are on track to meet their goal of FDA approval if they successfully complete their second Phase III trial along with other associated safety studies. They also plan to seek approval from the European Medicines Agency and other regulatory bodies around the world. 

Legal Psychedelics Today

Psyched Wellness (CSE: PSYC) has completed their first extraction of a “legal psychedelic mushroom.” 

Legal Psychedelic? 

Yes, you read that correctly. Psyched is developing products formulated with the Amanita Muscaria mushroom, which is legal and according to the company has psychedelic effects. 

Mushrooms Hunting: The team ordered Amanita Muscaria caps from five different suppliers in different geographies around the world which were extracted using the company’s proprietary extraction protocol. 

Psyched Product Plans

The first product Psyched plans to introduce is an Amanita Muscaria based tincture which “soothes the body, tackles physical distress, and may help with sleeping,” per the company’s website

Road Map

  • The Amanita Muscaria mushroom has passed a toxicity assessment clearing it’s path forward. 
  • The extractions are out for a third party lab test to determine if the extract contains the “necessary and desired compounds.”
  • After testing, Psyched will move ahead with large scale extraction and into pre-clinical trials.

Eleusis Builds and Buys

Eleusis is planning for it’s future with a pair of moves:  the acquisition of Kalypso Wellness Centers, and plans to initiate Phase II clinical trials for the treatment of Major Depressive Disorder. 

ElusIS? A privately held clinical-stage life science company focused on psychedelic therapeutic drug discovery. 

Kalypso Come Together

Kalypso was founded in 2016 by two anesthesiologists and two pain management physicians. 

  • Elusis is purchasing 100% of the company which includes 7 clinics across the United States which have delivered over 10,000 ketamine infusions. 
  • The deal is an all stock transaction, the value was not disclosed. 

Going to Clinic 

The company plans to be in clinic by the end of 2021 with Phase II trials of their infusion therapies ELE-Ket+ and ELE-Psilo+ for the treatment of major depressive disorder.

Report Read Out 

Bill to decriminalise small amounts of MDMA, heroin, ice and other hard drugs to be introduced in the ACT: The small, liberal capital territory of Australia is considering decriminalizing a number of  drugs.

BC cannabis company Way2Grow is seeking to get into psychedelics by applying for a research and dealers license.

PharmaTher (CSE: PHRM) has filed a patent application for the combination of psilocybin and  FDA approved drugs. Any such combination would be subject to standard clinical trials. 

Ehave (OTC Pink: EHVVF) is launching a ketamine home delivery service. The company is acquiring CureDash to form the backbone of the product. 

Oakland City Council unanimously passed a motion calling on the State of California to decriminalize psychedelics and allow for local jurisdictions to permit healing ceremonies.

Delic Corp (CSE: DELC) put out a press release announcing that traffic to their Reality Sandwich website hit a record high.