Psychedelics stocks are hot.
If any investor needed confirmation of this, it comes in the first day of trading for NUMI.
Numinus Wellness Inc
(CAN:NUMI) began trading today. As of 11:30 EDT, its stock is up 304% to CAD$1.01. But it has already traded as high as CAD$1.55.
This spike in the share price is being driven by heavy volume. NUMI has traded over 10 million shares. The company currently has 93.7 million shares issued and outstanding.
What is Numinus Wellness?
This is a cannabis company that is already generating a significant revenue base. It’s seeking to leverage both its experience in cannabis and existing assets into a dominant position in the emerging psychedelics space.
For investors, the following factors are fueling NUMI’s initial surge:
- A 7,000 square foot lab fully equipped for testing and processing
- A Canadian dealer’s license (under the Controlled Substances Act) that allows Numinus to buy, sell, possess and test psychedelics, including MDMA, psilocybin, psilocin, CMT, and mescaline
- The “Numinus Healing Centre”: an operational facility (located in Vancouver, B.C.) to “guide people in the use of psychedelics”, in accordance with federal law
- An existing revenue base derived from the lab and Healing Centre of ~CAD$10 million
There is a growing clamor among researchers and medical practitioners of the potential of psychedelics for the treatment of (in particular) mental health issues. Depression, addiction, and PTSD are three of the leading areas of research at present.
- 50% of people are afflicted by some form of mental health issue by age 40
- 20% suffer from some form of addiction
- 9% will experience PTSD at some point in their life
[source: Numinus Wellness]
The Numinus Healing Centre is staffed by a team of over 15 medical professionals, including doctors of medicine and naturopathy along with registered nurses.
This isn’t some flashback to the 1960s, with modern-day Timothy Learys taking students on “trips” and exhorting people to “turn on, tune in, drop out”. This is serious science.
The medical and commercial potential is on the table. The race is on.
The industry faces an arduous path through regulatory channels before commercialization is possible – with the cannabis industry as our guide.
However, investors in NUMI and other psychedelics stocks including Champignon Brands
(CAN:SHRM / US:SHRMF) and Mindmed Inc
(CAN:MMED / US:MMEDF) are betting that these companies can make it to the finish line.