Demystifying The Top Shroom Stocks

The “Shroom Boom,” as they say, is finally happening.

Not down the road… not next year…

The legalization movement of psychedelics is happening now. And the market is warming up to become one of the most exciting money-making opportunities of our lifetimes.

That’s the good news…

The bad news – as with any emerging market – is that psychedelic investing is ripe with confusion. Shroom Stocks? Psychedelic Stocks? Mushroom Stocks? Psilocybin Stocks? We’re so early to the market that the entire asset class doesn’t even have a name yet.

Furthermore, retail investors are finally showing buying interest but it’s a quite a challenge to even discover what your options are… let alone, finding out what each psychedelic company actually does.

To help, we took a stab at breaking down the psychedelic market sector by sector and defined the roles of each leading stock. Just like the cannabis market (think hemp, CBD, cultivation, retail, etc.), psychedelic stocks will likely break into different sub-sectors or “categories” as the market matures.

For starters, our list is compiled of only public companies that are focused in psychedelics. While many large cap pharmaceutical companies are entering the psychedelics space, “mushrooms” is certainly not their leading and underlying focus. In this exercise we wanted to highlight only the “psychedelic pure-plays,” all of which are featured in our Psychedelic Market Index.

In the process, we’ll stay away from companies that have dangerously low market caps. After all, these are what we consider the top shroom stocks to date.

Here are your psychedelic sector categories:

A Note on Risk: Generally speaking, shroom stocks are very risky in comparison to the overall market. But there’s little to no difference between these stocks and other aggressive growth plays available. If you’re willing to take on more risks and volatility, the following shroom stocks are worth considering.

That said, educated investors are better off than those throwing darts in the dark. Becoming familiar with today’s evolving psychedelic sectors and company primary focuses should go a long way for investors who are serious about gaining exposure to shroom stocks.

Codebase Ventures (CODE) – Codebase Ventures is a Vancouver-based investment company that specialises in early-stage opportunities. The company is actively positioning itself to invest in new psychedelic opportunities in 2020. In February 2020, Codebase Venture’s subsidiary, Titan Shrooms & Psychedelics, signed a letter of intent to form a joint venture (JV) with Mycology Ventures.

Global Trac Solutions (PSYC) – Generally speaking, Global Trac Solutions is a business development consultancy and resource marketplace. Most recently, PSYC has expressed its intent and commitment to positioning itself at the forefront of the psychedelic revolution and as a resource center for discovering and understanding the latest research and business opportunities surrounding psychedelic inspired medicines. With 30 psychedelic-based domains, the firm plans to launch some of the new and exciting business ventures they believe will be able to deliver software, marketing and technology solutions to the newly formed industry.

Numinus Wellness (NUMI) – Numinuss Wellness is a fully integrated psychedelics and cannabis company that has identified three pillars to their shroom business:

New Wave Holdings (SPOR) – New Wave Holdings Corp is an investment issuer with a focus on the burgeoning psychedelic and eSports sectors. Here are their three psychedelic divisions:

Mydecine Innovations Group (MYCO) – Mydecine Innovations Group is a life sciences company dedicated to the development and commercialization of adaptive pathway medicines, natural health products and digital health solutions. Currently Mydecine Innovations Group encompasses three companies, each with its own unique vertical focus:

Champignon Brands (SHRM) – Champignon has recently expanded its initiatives as a psychedelic medicine company developing novel rapid onset treatments for depression, PTSD, and substance-use disorders via the clinical delivery of ketamine and ketamine-derivatives.

Currently, the company is contemplating a corporate reorganization to liberate the value of its functional mushroom-infused CPG division. This is now possible thanks to their recent acquisition of Artisan Growers – a wellness company specializing in medicinal mushroom and mushroom-infused products that is capable of producing an assortment of organic craft mushroom varietals including Lion’s Mane, Chaga, Reishi and Agaricus Blazei.

Hollister Biosciences (HOLL) – While Hollister is a vertically integrated cannabis cultivation company that does everything from manufacturing to sales and distribution, the firm just made its move into the psychedelics industry by closing the acquisition of AlphaMind Brands in May 2020.

AlphaMind Brands is developing a portfolio of legal mushroom-based natural health products. AlphaMind expects to continue research and development initiatives, which include the exploration of Psilocybin based pharmaceutical treatments. This strategy eerily mimics Champignon Brands move a with their acquisition of Artisan Growers.

Captiva Verde (PWR) – In Nov 2019, Captiva Verde Land Corp confirmed the execution of a pharmaceutical-grade psilocybin mushroom growing, packaging, sales and distribution program in Mexico under its pharmaceutical license that includes over 300 types of narcotics and psychoactive medicines under groups I, II, and III of the World Health Organization guidelines.

To be sure, mushrooms are no more than a side hustle for Captiva Verde right now. They continue to purchase cannabis brands in the US and Canada, and have raised money intended to support their grow operations in New Brunswick, while still engaging in the real estate deals they started out on as a company.

Red Light Holland (TRIP) – Red Light’s growth strategy is simple. They’re aiming to develop the first globally recognized psychedelics brand. The core business revolves around the production, growth and sale of a premium of magic truffles to the legal, recreational market within the Netherlands. With Brazil, Bulgaria, and Jamaica next on the list.

MindMed (MMED) – Mind Medicine Inc. is a neuro-pharmaceutical company that discovers, develops and deploys psychedelic medicines to improve health, promote wellness and alleviate suffering. The Company’s immediate priority is to address the opioid crisis by developing a non-hallucinogenic version of the psychedelic ibogaine. In addition, the Company has established a micro dosing division to conduct clinical trials of LSD micro dosing for Adult ADHD.

Revive Therapeutics (RVV) – Revive is a life sciences company focused on the research and development of therapeutics for infectious diseases and rare disorders, and it is prioritizing drug development efforts to take advantage of several regulatory incentives awarded by the FDA such as Orphan Drug, Fast Track, Breakthrough Therapy and Rare Pediatric Disease designations. Currently, the Company is exploring the use of Bucillamine for the potential treatment of infectious diseases, with an initial focus on severe influenza strains including COVID-19. With its recent acquisition of Psilocin Pharma Corp., Revive is advancing the development of Psilocybin-based therapeutics in various diseases and disorders.

MOTA Ventures (MOTA) – Recently, Mota entered into an LOI to acquire German psilocybin manufacturer Verrian that is focused on delivering and developing products related to addiction reduction, with a focus on alcohol and opiates. To date Verrian has developed two psilocybin products: PSI GEN and PSI GEN+. Both of these Psilocybin products focus on opiate addiction reduction.

Yield Growth Corp (BOSS) – Their most recent acquisition of Flourish Mushroom Labs, November 2019 brought Yield Growth Corp into the psychedelic space. This gives them a portfolio of 126 psilocybin formulas in addition to a huge variety of other mushrooms. While the company’s main focus is still to expand it’s CPG offerings, they have made their ambitions to produce psilocybin clear: Via Acres Flourish Labs, they plan to construct a purpose-built laboratory for the cultivation of psilocybin mushrooms, and R&D activities in Saint Vincent and the Grenadines.

To our knowledge, this is the fist ever attempt of categorizing psychedelic stocks. If you have any comments, objections, or suggestions please leave a comment below.

The space is evolving so quickly – with new acquisitions and brand-altering announcements almost every day – that this research will likely be out of date in just a couple months. For this reason, we plan on keeping this analysis up to date as the market continues to expand.