Follow The Money: US$500+ Million In New Psychedelics Financing Powering Massive Growth

How do you make money in psychedelic stocks? The pattern is obvious.

Invest in a private placement for one of the leading psychedelic drug companies and history shows you will do very well.

What if you’re not an institution or accredited investor and can’t participate in one of these offerings?

Follow the money. Investors who have bought in after these deals have been announced also prospered in 2020.

Buying shares on the market isn’t quite as sweet a deal. For one thing, you don’t get the additional inducement of a half-warrant with each unit purchased.

But once a deal has been announced, the company is cashed up to execute on their business model. Buying into quality companies right after they have capitalized is a tried-and-true formula for successful investing in small-cap stocks.

These public companies aren’t raising all this capital merely to strut around and boast about large cash balances. They are using this capital to advance operations: drug R&D, mental health clinics, digital platforms to advance mental health care, and M&A.

That was the message from the previous Psychedelic Stock Watch article.

Psychedelic stocks offer strong risk/reward profile

Investing in an emerging sector is always exciting and usually high-risk. However, investors in psychedelic stocks are being presented with a very favorable risk/reward profile. See: The 8 Best Reasons To Invest In Psychedelic Stocks

Numerous multi-billion-dollar mental health treatment markets currently suffer from a woefully inadequate standard of care. Over 1 billion people are afflicted by what is now known as the Mental Health Crisis.

Clinical studies on psychedelic drugs (and psychedelics-assisted therapies) are showing the clear potential to revolutionize mental health care in these treatment markets. See: Psychedelic Drugs: Powerful Medicine, Life-Changing Results

Psychedelic drug companies are raising capital in big gobs to finance this Revolution.

Given this extremely positive investment outlook, to the surprise of no one, high-profile investors from Silicon Valley, Wall Street, and elsewhere are piling into the space.

Investors are growing increasingly nervous regarding the bubble prices of many of the most popular companies in the broader markets. Psychedelic stocks represent something different: strong returns in an emerging sector, with almost limitless long-term growth potential.

Not chasing momentum in over-priced stocks. Old-fashioned investing.

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Disclosure: 

 

The writer holds shares in MindMed Inc, Numinus Wellness, Cybin Inc and Mind Cure Health. Mind Cure Health is a client of Psychedelic Stock ...

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