The promising research and development of the use of psilocybin (the "magic" ingredient in certain species of mushrooms) and ketamine in the treatment of mental issues such as obsessive-compulsive disorder, PTSD, opioid addiction, alcoholism, depression, anxiety, and eating disorders suggests that the fledging psychedelic drug industry is on the threshold of becoming the next billion-dollar industry.

Index Inclusion Criteria

To provide insights into the progress of this fledgling sector's growth we have revised and renamed the munKNEE Pure-Play Psychedelic Stocks Index (previously referred to as the Medicinal Mushroom Stock Index or Magic Mushroom Stock Index) to more accurately track each constituent's stock price performance to complement the munKNEE Pure-Play Pot Stock Index. Only 11 stocks are eligible for inclusion in the index based on the following criteria:

• a market capitalization between US$10M and US$75M
• a stock that trades between US$0.10/share and US$1/share

For the record, there are 20 other stocks trading in the psychedelic drug sector that are not eligible for inclusion in the munKNEE Pure-Play Psychedelic Stocks Index, as follows:

• the 3 largest psychedelic drug stocks in the sector are not included in the Index because they either trade in excess of $1/share and/or have a market cap in excess of $75M, namely, Compass (CMPS), MindMed  (MMEDF), and Field Trip (FTRPF) as these inclusions would make a comparative analysis and Index averages meaningless. As such, they will be included as a footnote to the munKNEE Pure-Play Psychedelic Stocks Index updates as to performance.
• the 10 smallest psychedelic drug stocks in the sector are not included in the Index because they either trade at less than $0.10/share and/or have a market cap of less than $10M, namely: Better Plant (VEGGF), Codebase (BKLLF), Ehave (EHVVF), Graph Blockchain (REGRF), Green Star (GTSIF), Minerco (MINE), New Wave (TRMNF), Red Light (TRUFF), Nutritional High (SPLIF) and Thoughtful Brands (PEMTF).
• 7 of the psychedelic drug stocks in the sector are not included in the Index because they trade exclusively on the Canadian Securities Exchange (CSE) in Canadian dollars in addition to being extremely small in market capitalization and trading for less than the equivalent of US$1/share, namely: Aion (AION), Core One (COOL), Cybin  (CYBN), Entheon (ENBI), Newscope-Pharmather (PHRM), Pure Extracts (PULL) and Psyched Wellness (PSYC).

Below is a brief introduction to each of the 11 eligible companies in the munKNEE Pure-Play Psychedelic Stocks Index and their performance for the week ended November 13th. (All prices in USD)

1. Nova Mentis (LIBFF) +33.3% (+15.4% the previous week) to $0.20 (Mkt. Cap: $9.1M)
2. Mydecine (MYCOF) +13.3% (unchanged the previous week) to $0.17 (Mkt. Cap: $21.9M)
3. Champignon (SHRMF) +9.3% (+22.9% the previous week) to $0.47 (Mkt. Cap: $72.6M)
4. Seelos (SEEL) +7.5% (+8.1% the previous week) to $0.86 (Mkt. Cap: $44.1M)
5. Silo Pharma (SILO) +2.4% (+110% the previous week) to $0.43 (Mkt. Cap: $25.5M)
6. Revive (RVVTF) +/-0% (+20.0% the previous week) at $0.18 (Mkt. Cap: $35.2M)
7. Havn (HAVLF) +/-0% (+3.0% the previous week) at $0.69 (Mkt. Cap: $46.0M)
8. Mind Cure (MCURF) -2.0% (-14.0% the previous week) to $0.48 (Mkt. Cap: $28.5M)
9. Jaguar (JAGX) -4.8% (+5.0% the previous week) to $0.20 (Mkt. Cap: $11.2%)
10. Hollister (HSTRF) -10% (+11.1% the previous week) to $0.09 (Mkt. Cap: $18.5M)
11. Numinus (LKYSF) -13.2% (+18.8% the previous week) to $0.33 (Mkt. Cap: $43.6M)

The average performance of the above 11 psychedelic drug stocks last week was +2.5% vs. +14.5% the previous week. Interestingly, in comparison, the munKNEE Pure-Play Pot Stock Index of the 25 pure-play cannabis stocks that trade in excess of US$1/share was +1.8% vs. +25.1% the previous week.

About Each Constituent

1. Mydecine Innovations Group Inc. (MYCOF): Mydecine produces, transfers, sells and exports pharmaceutical-grade psilocybin from whole mushroom extraction and does so at a fraction of the cost of synthetic psilocybin production. It is conducting clinical trials into the efficacy of psilocybin in treating PTSD in collaboration with the Dutch Royal Army,  For more information on the company visit its website here.

2. Numinus Wellness Inc. (LKYSF): Numinus combines clinical operations with psychedelic drug R&D and cultivation of Psilocybe mushrooms, for the purpose of extracting psilocybin from them.  For more information on the company visit its website here.

3. Silo Pharma Inc. (SILO): SILO is focused on providing psychedelic therapeutics to patients suffering from end-of-life anxiety, Alzheimer's, depression, addiction, PTSD, and obsessive-compulsive disorder. For more information on the company visit its website here.

4. Revive Therapeutics Ltd. (RVVTF): Revive entered a Phase 1 clinical trial in August with the University of Wisconsin System to study the safety and feasibility of psilocybin in adults with Methamphetamine Use Disorder.  For more information on the company visit its website here.

5. HAVN Life Sciences Inc. (HAVLF): HAVN is engaged in the research and development of psychopharmacological products, including the formulation of standardized psychoactive compounds derived from fungi.  For more information on the company visit its website here.

6. Champignon Brands Inc. (SHRMF): Champignon is focused on treatments for depression through the development of ketamine compounds and a network of ketamine-based treatment clinics. For more information on the company visit its website here.

7. Hollister Biosciences Inc. (HSTRF): Hollister acquired AlphaMind Brands for C$1.2M to gain exposure to the psychedelic arena and as a complement to its cannabis brand. For more information on the company visit its website here.

8. Jaguar Health Inc. (JAGX): Jaguar has launched a mental health Entheogen Therapeutics Initiative with the goal to discover novel psychoactive plant-based compounds that treat mood disorders, addiction, neurodegenerative diseases, and more. For more information on the company visit its website here.

9. NOVA MENTIS Life Science Corp. (NOVA): Nova Mentis is developing medicinal psychedelics for neuro-inflammatory conditions with a significant cognitive component and high unmet therapeutic needs with an initial focus is on Autism Spectrum Disorder. For more information on the company visit its website here.

10. Seelos Therapeutics Inc. (SEEL): Seelos has completed Phase I of its study of intra-nasal racemic ketamine (SLS-002) as a rapid, effective treatment for refractory depression and suicidality and is beginning a double-blind, placebo-controlled Proof of Concept study for Acute Suicidal Ideation and Behavior in patients with Major Depressive Disorder this fall. For more information on the company visit its website here.

11. Mind Cure Health Inc. (MCURF): Mind Cure is developing products from the 12 species of edible ("functional") mushrooms that are recognized as promoting brain health - and represent a multi-billion market in their own right - and this market, unlike psychedelic drugs is open for business today. Given that it could take +10 years, and potentially +$100M, to bring a new psychedelic drug to market, this avenue will allow Mind Cure to offset some of the R&D costs associated with psychedelics research with near-term revenue streams from functional mushrooms. For more information on the company visit its website here.

Larger Mkt. Cap Pure-Play Psychedelic Stocks

• Field Trip (FTRPF) +63.5% (+15.9% the previous week) to $3.81 (Mkt. Cap: $84.1M)
• MindMed (MMEDF) +/-0% (+18.2% the previous week) at $0.91 (Mkt. Cap: $273.5M)
• Compass (CMPS) -7.7% (+21.0% the previous week) to $35.73 (Mkt. Cap: $1.3B)

1. COMPASS Pathways Plc (CMPS): COMPASS has a psilocybin-based therapy for treatment-resistant depression in Phase 2 of clinical trials. For more information on the company visit its website here.

2. Mind Medicine Inc. (MMEDF): MindMed has three drug initiatives that use psychedelic mushrooms already in Phase 2 with several other initiatives in Phase 1 trials. For more information on the company visit its website here.

3. Field Trip Health Ltd. (FTRPF): Field Trip is conducting advanced research on plant-based psychedelics such as ketamine as a treatment option for PTSD. For more information on the company visit its website here.

Psilocybin Therapy Legalization

Psilocybin therapy has been approved in the state of Oregon making it the first U.S. state to legalize a form of psychedelic-assisted therapy. Adults over the age of 21 years will be able to access such therapy in a controlled, therapeutic environment and there is currently no restriction on eligibility criteria to access treatment.

Currently, psilocybin is already decriminalized in Denver and Oakland. There's a good chance that Oregon's vote will create a domino effect of access to psilocybin-assisted therapy for those who can benefit from it the most.