Psychedelics Are Starting to Gain Traction Once Again After a rough 2021, I think it's about time for the shrooms market to have a comeback due to the continued research and sentiment surrounding the space. As someone who lives in Vancouver, Canada, I've seen this sentiment change through 4/20 which is the largest protest and cannabis celebration on the planet with over 100,000 attendees. This year, for the first time ever, the event will transition toward shrooms because of the increasing popularity of psychedelics.
https://curiocity.com/vancouver-4-20-event-mushrooms/
Alongside 4/20’s transition into psychedelics, regulatory approval is also starting to look promising. Health Canada recently approved the first special access program requests for psilocybin. Additionally, many dispensaries are selling shrooms as they did with cannabis which actually helped spur talks for the legalization of the substance. With shrooms following suit, this could pressure the government to begin legalization talks sooner than we expect.
https://therapsil.ca/health-canada-approves-first-special-access-program-requests-for-psilocybin/
But what does this mean for companies in the space? Well, there are a few things to pay attention to.
- After last year’s consolidation and selloff, the space is severely undervalued. For example, cannabis was once a risky investment, but now the cannabis industry has established itself as one of the fastest-growing investment opportunities on the planet.
- Continued improvement in the research behind it which helps with medical and recreational use while showing the effectiveness for medical treatments and stress relief.
- The psychedelic market is projected to grow exponentially, with estimates that it will double by 2026.
So I've been looking into a few companies to take advantage of the current market just like $NUMI. But, the one I want to highlight today is still in its pre-IPO stages but is very interesting. Apex Labs (ticker reserved: $APEX) is a company that focuses on the research and development of psilocybin which can be used to treat veterans. The Company’s lead clinical candidate is a low-dose synthetic psilocybin product for the treatment of Post-Traumatic Stress Disorder (PTSD) and treatment-resistant depression. $APEX is already on track to finish phase 2a trials very soon.
With Canada being the 4th largest anti-depressant per capita user in the world, there is a huge potential market of people needing proper treatment for their mental health. I'm expecting $APEX's IPO to come in the fall, so definitely look into the business as they continue to prepare to go public.