Years from now when historians revisit the early days of psychedelic medicine, it might be MindMed’s uplisting to the Nasdaq that gets marked as a turning point for the industry. Compass Pathways was about to IPO and all other psychedelic firms were still trading on smaller exchanges, hoping to one day establish themselves in the greater investment world. Then came Sept 2020 and the news of MindMed’s application to uplist – and everything started to change. Suddenly there were Forbes’ profiles, and mini bull runs and psychedelics slowly began to appear in the mainstream investment conversation. So while there’s a lot of history still to be written, it seems like making the jump to a major exchange like the Nasdaq will be a crucial step for the industry. So who will be next to make the big move?
First, what are Nasdaq’s listing requirements?Major exchanges like the Nasdaq don’t let just anyone in the club, there are minimum listing requirements that ensure companies are the real deal and offer investors solid investment opportunities.
- – The Nasdaq has four sets of listing requirements and every candidate company must meet the criteria of at least one of these requirement sets. The four groups of listing requirements are: 1) Earnings 2) Capitalization with cash flow 3) Capitalization with revenue 4) Assets with equity
- – In addition, there are general rules that all companies must meet like the number of shares and shareholders, trading volume, and minimum share price.
- – While the basic requirements must be met, there is some flexibility. For example, the share price minimum is $4.00, but prices of $3.00 or $2.00 can be accepted if the company meets other requirements (vague and not set in stone).
So, which psychedelic company will be next to uplist?Taking the Nasdaq’s requirements into consideration, here’s a list of the firms with the best chances to uplist.
- – The company started strong, launching with the largest ever private funding for a Canadian psychedelic company. They’ve followed up with successful public offerings that have added another $88 million in capital.
- – Major analysts have given Cybin positive coverage and impressive predictions, with Canaccord Genuity setting a price target of $8 and Roth Capital Partners recently coming out at US$10 (Canaccord’s report even predicted that Cybin would likely soon uplist to a major exchange).
- – Cybin has progressed quickly in its clinical trials, already in a Phase 2 trial of psilocybin therapy for Major Depressive Disorder. They also have several other compounds moving towards trial. Advanced trials are the most important marker for future commercial success and this puts them in similar territory with MindMed and Compass.
- – Despite an industry-wide pullback, Cybin has been the best performing psychedelic stock in recent weeks (behind MindMed’s Nasdaq runs). Prices have risen above $2 and volume is up significantly.
- – Field Trip has a diverse product portfolio and solid operational infrastructure. They operate a growing network of in-person treatment clinics in both the US and Canada (currently using ketamine but positioning themselves for other compounds once they become legal). They also have a drug development division that’s moving a proprietary molecule towards clinical trials.
- – Field Trip has raised a truly impressive amount of capital, out-raising Cybin with over $120 million, including a major $95 million bought deal financing. This puts them in the capital big leagues and gives them a solid financial future.
- – While lacking some trading volume, their share price is higher than most psychedelic players and their share structure and float are solid.
- – Field Trip is also one of the only other psychedelic firms to receive analyst coverage, receiving a very positive $8.50 price target from Stifel GMP.
- – The company also boasts an impressive team with board members like Dieter Weinand, the former CEO and Chairman of the Board of pharmaceutical giant Bayer.
- – Numinus is one of the more popular psychedelic stocks with strong retail support and solid price performance. With the release of some positive announcements, NUMI could make some quick market moves.
- – Numinus trails the top tier in terms of capital but raised a very solid $40 million in a recent bought deal financing bringing their total reserves to approx $70 million.
- – It’s a dynamic company with a diverse range of developments. Numinus operates in-person clinics (through their acquisition of MindSpace in Montreal) and has an expanding drug development program.
- – They are running two Compassionate Access trials for psilocybin and MDMA, and have a collaboration with psychedelic pioneer MAPS.
- – Numinus also operates a state-of-the-art research facility, with Numinus Bioscience holding a Health Canada licence for the production, sale, and export of a variety of psychedelic compounds like Psilocybin, Ketamine, LSD, DMT, Mescaline and DMT.
- – They are one of the few psychedelic firms to be currently earning revenue, recently reporting quarterly earnings of over $250k.
This rounds out the list of serious Nasdaq contenders, stay tuned to Microdose for more uplisting news. Note: There was another Nasdaq announcement that went almost completely ignored by the industry. Back in January, Mydecine announced that they’d filed an application to uplist to the Nasdaq. While Mydecine is running an exciting Phase 2 trial, they still lack many of the Nasdaq requirements. Still, this is interesting potential news that investors should keep an eye on.