Obviously, Novamind is not as well-funded as Field Trip. It’s not unreasonable to expect an approximate doubling in revenues in 2020. The company has already reported that 2020 clinic visits have doubled (but hasn’t yet released revenue numbers). Via its Cedar Psychiatry division, Novamind generated revenues of CAD$1.9 million in 2019. In fact, Novamind is generating more revenues off its clinics than Field Trip. Novamind Inc (CAN:NM / US:NVMDF) only recently went public (on January 5, 2021), but it is well-established in the ketamine treatment market. In fact, two public companies look very cheap in comparison to Field Trip’s present market cap. What do investors do in that situation? They look for other public companies pursuing ketamine-assisted psychotherapy – and see if they are more bargain-priced. FTRP has been one of the top performers in the psychedelics space, rising from an initial price of CAD$2 to (as previously noted) as high as CAD$9.89.Ĭurrently priced at roughly CAD$7 (and a CAD$375 million market cap), some investors may think they have missed most of the upside with Field Trip. Other psychedelic drug companies pursuing ketamine therapy are undervaluedįield Trips operational focus is ketamine-assisted psychotherapy clinics. And that appetite equates to fully cashed-up public companies.Īs Psychedelic Stock Watch frequently observes, this is a critically important factor in the industry’s favor – as drug development is a capital-intensive enterprise. Why shouldn’t these bankers be confident? After the bought deal is announced, we quickly hear that the financing has been “upsized” – sometimes on the same day as the original announcement.Ī nearly insatiable appetite for a piece of the action in the emerging psychedelic drug industry. Investment banks don’t offer such bought deals (to everyone) unless they are very confident they can sell the units. With virtually all recent financings by public psychedelics companies we see two phrases pop up over and over.įirst we see “bought deal”: guaranteed money from the underwriter. But it’s not just Field Trip for which the Smart Money hungers. That signals a very strong appetite among institutional investors. Ultimately, the Field Trip financing was upsized by an additional 65%. Cybin Inc (CAN:CYBN / US:CLXPF) raised CAD$50 million for its RTO financing. This would have merely tied the deal as the third largest pubco financing. Institutions continue to have a nearly insatiable appetite for psychedelic stocksįield Trip originally announced a $50 million bought deal financing. And if it approaches its February highs, its market cap will be approximately double that of NUMI. Numinus Wellness (CAN:NUMI / US:LKYSF), the previous favorite to claim the #3 position, has a current market cap of ~CAD$250 million following the recent pullback in these stocks.įield Trip’s market cap is roughly 50% larger. That means an implied market cap for FTRP of ~CAD$375 million.Īt its CAD$8.50 target price (in a recent analyst report by Stifel GMP), FTRP would have a market cap of over CAD$460 million. When we add the additional 12.75 million shares to the current 42.4 million, total shares issued and outstanding will rise to just over 55 million. It could even recover further toward its recent all-time high (CAD$9.89). Field Trip is a tightly held company with a small public float. Let’s assume the share price stabilizes around CAD$7. We can see this with the company’s new market cap.įTRP traded as low as CAD$6.50 (the financing price) after the announcement. But beyond that, no public company had clearly emerged in third place.įield Trip has now separated itself from the rest of the pack. It’s an obvious takeaway from Field Trip’s bought deal, but still worth noting.Ĭompass Pathways (US:CMPS) and MindMed Inc (CAN:MMED / US:FTRP) had already established themselves as industry leaders among public companies in this space. ![]() Most psychedelic stocks are undervaluedįield Trip is an industry leader among psychedelic drug public companies. ![]()
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