TM Editors' Note: This article discusses one or more penny stocks and/or microcaps. Such stocks are easily manipulated; do your own careful due diligence.

The number of small bio-pharmaceutical companies doing research into the development of psychedelic compounds for the treatment of mental health problems such as depression and addiction has almost doubled in the last 3 months and now numbers 38. The sector has been analyzed and the editors of munKNEE.com have chosen 15 of them to be constituents in the revised Pure-Play Psychedelic Drug Stocks Index.

The munKNEE Pure-Play Psychedelic Drug Stocks Index went up 7.4% last week with 10 of the 15 constituents advancing and 5 doing so by more than 10%. Below is the performance of each of those 5 constituents and the noteworthy developments during the week that contributed to their advance:

1. Seelos Therapeutics* (SEEL): +78.6% to $4.75/share
   • BTIG initiated coverage on the stock with a buy recommendation and a one-year price target nearly 4.7 times higher than Seelos' closing price of last Thursday
2. Revive Therapeutics* (RVVTF) +35.5% to $0.42/share
   • Provided a favorable update on the Company’s FDA Phase 3 clinical trial to evaluate the safety and efficacy of Bucillamine in patients with mild to moderate COVID-19.
3. Jaguar Health (JAGX): +34.8% to $2.17/share
   • Signed a definitive agreement for a third non-dilutive royalty financing transaction, pursuant to which Jaguar is selling to the lender for an aggregate purchase price of $5 million a royalty interest in future potential crofelemer (Mytesi) sales for the proposed COVID-related indication in long-hauler patients for which the Company is currently exploring the pathway of conditional marketing authorization in the European Union. 
4. Red Light Holland* (TRUFF): +24.0% to $0.31/share
   • Launched its Virtual Tele-counseling membership program on the Company's iMicrodose Digital Care App in the Netherlands. 
5. Psyence Therapeutics (PSYG): +11.1% to C$0.40/share
   • Launched its functional (edible) mushroom brand, "GOODMIND", through a South African-based special purpose vehicle called Goodmind (Pty) Ltd..
   • Signed an agreement with Singapore-based medical biology, forensic science and product development company Base Pair Global Pte. Ltd.to assist in the development of advanced nutritional and health products with a strong focus on organic and naturally occurring ingredients.

The other 5 constituents that advanced during the week,  but by less than 10%, were, in no particular order: Champignon Brands (SHRMF), Numinus Wellness* (LKYSF), Compass Pathways* (CMPS) and Mindset Pharma (MSSTF).

The remaining 5 constituents, Cybin* (CLXPF), Havn Life* (HAVLF), Mind Medicine* (MMEDF), Novamind (NVMDF) and Field Trip Health* (FTRPF) declined during the week but by less than 10% with no particular negative news contributing to their weakness.

* indicates that the stock is also a constituent in the new - and tradable - Horizons Psychedelic Stock Index ETF (PSYK) which began trading on the Canadian NEO Exchange on January 26th at C$9.43 and closed at C$9.58 this week. It should be noted, however, that the Horizon index is not a pure-play ETF in that it also includes Johnson & Johnson, AbbVie Inc. and Greenbrook TMS Inc. who are not directing 100% of their efforts into the research and development of psychedelic components for medical applications. The  munKNEE Pure-Play Psychedelic Drug Stocks Index, on the other hand, is a pure-play and, as such, provides a true picture of the health and trend of this new stock sector. 

Please Note: Keep in mind that some stocks in this sector trade for less than $1/share (i.e. are penny stocks) and may be susceptible to manipulation by unscrupulous speculators. All prices are in USD unless otherwise noted. Go here to convert to another currency.