Psychedelic Stocks Primed For Atai-MindMed Bounce

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

 As the trough in psychedelic stocks extends into its fourth month, even patient investors are starting to lose patience in waiting for this exciting emerging sector to commence its next leg up.

For months now, investors in psychedelic stocks have been eagerly looking ahead “on the horizon” for a couple of important sector catalysts.

New Nasdaq listings for psychedelic stocks

Private industry leader, atai Life Sciences, has already announced its plans to go public (on the Nasdaq) this spring. Atai added an exclamation point to this when it raised another $157 million in its Series D financing in March.

Public industry leader, MindMed Inc (CAN: MMED / US: MMEDF) has declared its intention to seek to uplist on the Nasdaq. That was way back in September.

Uplisting to the Nasdaq can be a process completed in as little as 4 – 6 weeks. However, some of the more obscure listing requirements, specifically the Nasdaq’s “seasoning rules”, block MindMed from uplisting until May of this year.

The result of these Nasdaq listing requirements and atai’s own internal timetable for going public is that we will very likely see these two events occur with weeks – or possibly even days – of each other.

Psychedelic Stock Watch has been one of the industry commentators pointing to these events as important drivers for companies in this sector.

Will ATAI IPO Be The First Major Psychedelics Catalyst For 2021?

Will MindMed Nasdaq Listing Be The Next Sector-Wide Catalyst?

 Why an atai IPO will be a pivotal event

Back in the fall, talk of an atai IPO or MindMed uplisting was viewed as the icing on the cake in a fast-rising sector.

Today, after three tough months of sliding share prices and declining trading volume, these events are now looking more like the “cake” itself.

There are three reasons (two of which are closely related) as to why an atai IPO should be a major shot-in-the-arm for the whole industry.

  1. The general IPO fever in markets
  2. IPO will dramatically increase visibility of the sector
  3. IPO will drive investors into other psychedelic stocks

It’s not a coincidence that IPO filings reached a 20-year high by November 2020.

Central banks have been flooding the global economy with more of their newly printed funny money than at any other time in history. Much of that cash ends up flowing into markets, driving up share prices.

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Disclosure: The writer holds shares in MindMed Inc and Numinus Wellness.

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