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

46 psychedelic drug stocks now trade on the various North American stock exchanges and the 11 with the largest market capitalizations (i.e. 24%) make up munKNEE's Pure-Play Psychedelic Drug Stocks Index and each of its 3 sub-components declined in May. Here are the details:

The use of psychedelics (extracted from plants or mushrooms or synthetic (human-made) for the treatment of a variety of mental illnesses, including anxiety, depression, post-traumatic stress disorder, and other related uses is evolving. The most common psychedelic substances include Ketamine, Psilocybin (street name "magic mushrooms"), Dimethyltryptamine (DMT), Ibogaine, LSD, or MDMA (street name, "ecstasy").

Chris Thompson, President and Director of Equity Research at eResearch  Corporation, the new parent company of munKNEE.com, reports research has shown that the psychedelic drugs market:

• is growing with a CAGR of 16.3% between 2020 and 2027 and
• is expected to reach $10.7 billion by 2027 from $2.1 billion in 2029. 

The 11 stocks in the Psychedelic Drug Stocks Index consist of:

• 4 micro-cap stocks (Group #1) with market capitalizations ranging from $51M to $65M and average just $59M,
• 5 small-cap stocks (Group #2) with market capitalizations ranging from $151M to $220M and average $184M and
• 2 mid-cap stocks (Group #3) with market capitalizations of $313M and $777M for an average of $545M

The remaining 35 stocks in the pure-play psychedelic drug stocks category are nano-cap stocks (i.e. have market caps below $50M) and are not included in munKNEE's Pure-Play Psychedelic Drug Stocks Index.

Below is the stock price performance for each Group for the month of May (and YTD in brackets) with the largest advancers and decliners in each Group over that period of time and the reasons why:

The 4 stocks in Group #1:

• are Red Light Holland (TRUFF); Braxia Scientific; Havn Life Sciences (HAVLF) and Mydecine Innovations Group (MYCOF) and they
• declined 15.0%, on average, in May (-28.6% YTD)
  • none of the 4 constituents advanced
  • Braxia (BRAXF), formerly Champignon Brands Inc., declined 29.8% (-46.8% YTD) to $0.33/share as a result of a class action filed on behalf of investors who purchased or otherwise acquired Champignon Brands Inc. securities between March 27, 2020, and February 17, 2021, and suffered a loss on said investment(s) within that period of time.

The 5 stocks in Group #2:

• are Cybin, Jaguar Health, Bionomics (BNOEF), Field Trip Health (FTRPF), and Numinus Wellness (LKYSF) and they
• declined 6.1%, on average, in May (+31.1% YTD)
  • Jaguar (JAGX), advanced +6.0% (+97.5% YTD) to $1.60/share as a result of favorable patient outcomes associated with cancer-related diarrhea by Napo Pharmaceuticals, Inc., Jaguar's wholly-owned subsidiary
  • Cybin (CLXPF) declined 21.1% (-5.3% YTD) to $1.42/share despite reports from Canaccord Genuity, Stifel GMP, and Roth Capital Partners that all categorize Cybin as a buy, with Stifel increasing its price target from $5 to $11, Roth noting a $10 per share price target, and Canaccord coming in at $8. No specific company news contributed to the major decline. 

The 2 stocks in Group #3:

• are Seelos Therapeutics and Mind Medicine (MNMD) and both 
• declined, on average, by 35.2% in May (+40.0% YTD) 
  • Seelos (SEEL) declined 49.4% (+94.9% YTD) to $3.08/share as a result of Roth Capital's Jonathan Aschoff reducing his recommendation to "neutral" from "buy" and cut his price target to $4 from $12 per share.

On average the above 11 Psychedelic Drug Stock Index constituents were -20.8% in May and are now -25.2% YTD.

(For more information on the reason(s) behind the changes outlined above you are urged to click on the stock symbols provided by TalkMarkets, where additional information is provided. All currency amounts are in U.S. dollars. Go here to convert to another currency.)