Psychedelics Investing: The Ultimate Due Diligence Guide

Due diligence is a complicated but critical step for any investor evaluating a proposition – particularly when it comes to relatively new sectors, such as psychedelics.

As excitement continues to ramp for the tantalizing potential of companies operating in the psychedelic arena, a more critical eye will be needed to assure investors are making the right bets for them.

The Investing News Network (INN) put together a package of information for investors who’ve determined to jump into psychedelics but want to start performing a more thorough review of the companies in the sector.

 

Start Here:Investing in Psychedelics

   

Curious about this new market?Find out what new psychedelics investors need to know.

 

Give me my free report!

Red flags to notice in psychedelic investments

As with any due diligence project, investors who become familiar with a sector can start to notice red flags when examining a company more closely before deploying any capital.

The challenge in psychedelics lies in going beyond the tried and true established business metrics and red flags for any sector.

Matt Carr, chief trends strategist at the Oxford Club, shared with INN some of the ways he likes to break down psychedelic investments despite the challenges around.

Where to start with so many new companies

There are a lot of interesting and dynamic options when it comes to psychedelic stocks. Companies across the board are vying for the attention of investors curious to participate firsthand.

As such, INN asked experts what people who are diving into space should know before making picks.

The key lesson for many investors is that this is a young sector barely out of the starting point.

“I wouldn’t even say that we’re in the earliest innings of a game, because I don’t even think we’re actually on the field quite yet,” Carr said.

Carr alongside Marik Hazan, founder and CEO of Energia, break down the current landscape for psychedelic companies and those investing in them.

ETF firm gains experience following psychedelic fund launch

INN spoke with Steve Hawkins, president and CEO of Horizons ETFs Management (Canada), about the progress he had noticed since launching the first psychedelics forward ETF into the market.

The Horizons Psychedelic Stock Index ETF (NEO:PSYK) made its debut in January. Since then, Hawkins said interest for the sector has only picked up.

“There was a lot of investor interest in getting into this sector pretty early,” he said.

Companies share hardships of listing process

At the end of the day a company hitting the public markets is a cause of celebration for those within a firm. And with the emergent nature of the psychedelics business more and more of these victories are being seen throughout exchanges.

INN spoke with a few companies in the space to share their experiences when it came to the public listing process.

Operating in such a relatively new space adds questions and clarifications a company must face regularly from investors, exchange regulators and the market at-large.

What are some of the first challenges seen in trying to make a splash as more and more companies jump into the pool in the hunt of psychedelic capital available.

Don’t forget to follow us @INN_LifeScience for real-time news updates!

Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.

 

New Report: Psychedelics Outlookfor Investors

   

What’s ahead for this new market?Find out in our exclusive psychedelics outlook INNvestor Report.

 

Give me my free report!

The post Psychedelics Investing: The Ultimate Due Diligence Guide appeared first on Investing News Network.

Read More