Alright so you've obviously heard the craze by now about psych stocks and I'm sure a lot of it has been gain porn and fat stacks. If MNMD's poor up-listing performance today didn't turn you off, here is some DD that will hopefully give you a better idea of what the company does. Plenty of people seem to think that MNMD is going to be selling tabs of acid and caps of mush to folks, but that's just not it. Take a look at whats below if you're interested.
​
Psych Sector Quick Overview
At the moment, there are (I think) 28 publicly traded companies in the sector. They are pretty much all penny stocks, except for Compass and Mind Med. This is a nascent sector and most likely an extended play given the time it takes for the drugs to come to market. Basically the sector can be divided into three main groups: 1) Drug Developers, 2) Clinic companies, and 3) Recreational Companies. Many companies blend these different categories but the one we are looking at today is predominantly in the drug development space. The drugs they are working on can be classified into two distinct categories: 1) Classical psychedelic compounds (Psilocybin, LSD, DMT, etc.) and 2) Novel psychedelic compounds (Derivatives and Novel Formulations). MindMed is focused on developing a blend of these two. There's an incredible wealth of research that has gone into these substances and how they are presumed to be far more effective than traditional therapy options in treating a variety of psychological disorders and ailments. In fact, Ketamine is already being used in assisted therapy in many places around the world. The sector had quite the run last fall and early into the new year. Looking like there might be another run based on a couple of big-name catalysts in the coming weeks. Because of the volatility and anecdotal hype, plenty of people have likened the sector to weed. But anyone who has felt the benefits of these drugs knows it's not the same. Sure, most of the companies are going to fail, and many don't have a lot to offer at all. However, MindMed is one of the biggest names, with the biggest backers and the most expansive drug pipelines, so it's nice to think they are in a league of their own.
​
Mind Medicine:
To get us started, their mission statement: “MindMed’s mission is to discovery, development, and deploy psychedelic inspired medicines and therapies intended to treat diseases in the areas of psychiatry, neurology, addiction, pain, and potentially others such as anxiety disorders, substance use disorders and withdrawal, and adult attention deficit disorder.”
The company breaks its process down into three parts that I’ll preface here so that you can reference them as you read through:
- Discover: This is where new compounds are being discovered, formulated, and tested in pre-clinical settings. Making sure things are safe and effective.
- Develop: Where the clinical trials start-up and the big money is spent.
- Deploy: Commercialization, distribution, scaling, access; the business side of things.
Will touch more on these different stages and what they have going on further down.
​
MindMed: Financials and Company
Drug development is crazy expensive, and MindMed has taken the opportunity many times to raise capital to finance its growth and development over the last year. Investors have complained quite a lot about it over the previous year, but it’s a reality we’re just going to have to deal with. Also, on this note, keep an eye out for up to CAD $500 million to be raised over the next two years; the base shelf prospectus has been filed and will be effective in the near future. \Sorry, I really don’t feel like doing all to currency conversions between USD and CAD.\
Funding –
- Total Funding: As of March 30, 2021, MindMed had a cash balance of $203 Million (All in CAD)
- Tranche 2: February 18, 2020 Mind