TM Editors' note: This article discusses a penny stock and/or microcap. Such stocks are easily manipulated; do your own careful due diligence.

This article provides an update on the revisions that have been made to the munKNEE Pure-Play Psychedelic Compounds-Based Drug Stocks Index with the increase in the minimum market capitalization required to be included in the Index ($80M+). The constituents removed from the Index were: Corbus Pharmaceuticals (CRBP), Revive Therapeutics (RVVTF), and Small Pharma (DMTTF).

Of the one hundred (100) psychedelic and marijuana drug companies in the clinical stages of research and development of treatments for a wide variety of mental illnesses, 40 are based on the use of marijuana THC, and 60 (see here) based on the use of one or more of 10 different psychedelic substances (read 10 Psychedelic Substances And The 36 Companies Researching Them).

You will note that each constituent in the analyses below has 5 areas of additional information that are imperative for any individual considering investing in this sector:

1. The company name is hyperlinked to its website to provide you with a description of the company and an analysis of its stock.
2. The trading symbol is hyperlinked to additional financial data and commentary on the company (where available).
3. The percentage change YTD is hyperlinked to a chart of the company's stock performance.
4. The Chance of Financial Distress percentage is sourced from macroaxis.com (visit the site and type in the stock symbol to obtain detailed financial data on the health of the company).
5. The Analyst Consensus is sourced from stockanalysis.com ((visit the site and type in the stock symbol to obtain a detailed consensus of their recommendations and projections). 

The munKNEE Psychedelic Compounds-Based Stocks Index

The constituent performances in March )specifically from the close of business on February) are presented below in descending order with their YTD performances in brackets:

Group 1 (market caps between $80M and $400M)

1. Numinus (NUMIF): UP +5.0%; (No Change YTD)
   • Chance of Financial Distress in next 2 years: +39%
   • Analyst Consensus: No analysts following NUMIF
2. Cybin (CYBN): DOWN -9.9%; (DOWN -31.7% YTD)
   • Chance of Financial Distress in next 2 years: +62%
   • Analyst Consensus: 14 stock analysts currently rate CYBN as a BUY.
3. Zynerba Pharmaceuticals (ZYNE): DOWN -11.3%; (DOWN -28.8% YTD)
   • Chance of Financial Distress in next 2 years: 6%
   • Analyst Consensus: 12 stock analysts currently rate ZYNE as a BUY.
4. Field Trip (FTRP): DOWN -15.7%; (DOWN -45.5% YTD)
   • Chance of Financial Distress in next 2 years: +67%
   • Analyst Consensus: 10 stock analysts currently rate FTRP as a BUY.
5. Seelos (SEEL): DOWN -20.8%; (DOWN -48.5% YTD)
   • Chance of Financial Distress in next 2 years: +52%
   • Analyst Consensus: 12 stock analysts currently rate SEEL as a BUY.
6. Allied Corp. (ALID): DOWN -41.1%; (DOWN -41.8% YTD)
   • Chance of Financial Distress in next 2 years: +24%
   • Analyst Consensus: No analysts following ALID

The 6 constituents in Group 1 were DOWN 19.0%, on average, in March and are now DOWN -37.3% YTD and DOWN -77.1% from their average peaks in 2021.

Group 2

Their performances are presented below in descending order with their YTD performances in brackets:

1. GH Resources (GHRS): UP +14.1%; (DOWN -21.0% YTD)
   • Chance of Financial Distress in next 2 years: +39%
   • Analyst Consensus: 10 stock analysts currently rate GHRS as a BUY.
2. Compass Pathways (CMPS): DOWN -5.8%; (DOWN -41.7% YTD)
   • Chance of Financial Distress in next 2 years: +58%
   • Analyst Consensus: 17 stock analysts currently rate CMPS as a BUY.
3. Atai (ATAI): DOWN -8.0%; (DOWN -33.3% YTD)
   • Chance of Financial Distress in next 2 years: +52%
   • Analyst Consensus: 19 stock analysts currently rate ATAI as a BUY.
4. Mind Medicine (MNMD): DOWN -9.0%; (DOWN -19.6% YTD)
   • Chance of Financial Distress in next 2 years: +62%
   • Analyst Consensus: 8 stock analysts currently rate MNMD as a BUY.

The 4 constituents in Group 2 went UP +2.7%, on average, in March and are still DOWN  -31.1%, on average, YTD, and DOWN -63.0% from their average peaks in 2021.

A Word of Caution

Most psychedelic companies are clinical-stage startups still in the product research and development of novel compounds. They have no products and no revenue and require a great deal of money to fund their R&D expenses so do your own in-depth due diligence. The above information should go a long way to helping you arrive at a prudent investment decision.