Welcome to the brave new world of psychedelic wellness and investors are taking notice. Penny stock investors have witnessed the cannabis craze the last 5 years or so and are feverishly hoping the mushroom craze is next to bring their portfolios lots of GREEN.
After decades underground, hallucinogens such as ketamine, LSD, psilocybin, and MDMA are getting a fresh look from the medical establishment, thanks to myriad studies suggesting silver bullet–like efficacy in the treatment of anxiety, depression, and addiction, among other ailments. MDMA, renowned for its bliss-inducing effect—hence the street name “ecstasy”—is on course to be approved for the treatment of post-traumatic stress disorder (PTSD) within the next year or two.
Synthetic forms of psilocybin, the active compound in magic mushrooms, were given “breakthrough” designation by the FDA in 2018, allowing for fast-tracking of drug trials. Meanwhile, this past November, Oregon became the first state in the nation to legalize psilocybin for medical use, an advance not lost on the investors flocking to start-ups like MindMed and Compass Pathways, both of which are developing psilocybin treatments in anticipation of a cannabis-style psychedelics boom. A mental-health revolution is at hand—and it’s long overdue.
Friday’s news that AIkido Pharma Inc. (NASDAQ: AIKI) closed on a $75 million dollar offering further confirms the investment community’s appetite for magic mushroom stocks and the need for additional research and development. AIkido Pharma recently entered into Letter Of Intent with Silo Pharma for the use of psilocybin and peptide therapy for cancer treatment. Before we list 8 penny stocks associated with the “mushroom craze”, lets learn more about its effects, dosing, where it’s legal what psilocybin is.
What is Psilocybin?
Psilocybin (4-phosphoryloxy-N,N-dimethyltryptamine) and psilocin are chemical compounds obtained from certain types of dried or fresh hallucinogenic mushrooms found in Mexico, South America and the southern and northwest regions of the United States. Psilocybin is classified as an indole-alkylamine (tryptamine). These compounds have similar structure to lysergic acid diethylamide (LSD), and are abused for their hallucinogenic and euphoric effects to produce a “trip”. Hallucinogenic (psychedelic) effects are probably due to action on central nervous system serotonin (5-HT) receptors.
There are over 180 species of mushrooms that contain the chemicals psilocybin or psilocin. Like the peyote (mescaline), hallucinogenic mushrooms have been used in native or religious rites for centuries. Both psilocybin and psilocin can also be produced synthetically in the lab. There have been reports that psilocybin bought on the streets can actually be other species of mushrooms laced with LSD.
Movement to Legalize Magic Mushrooms
The movement to decriminalize psilocybin in the United States began in the late 2010s, with Denver, Colorado becoming the first city to decriminalize psilocybin in May 2019. The cities of Oakland and Santa Cruz, California, followed suit and decriminalized psilocybin in June 2019 and January 2020, respectively. California has an agenda named “The California Psilocybin Decriminalization Initiative 2022” which will be voted on in 623 days (November 8th, 2022). Details on the website state that if it passed, a person 21 years or older would be able to cultivate, possess, distribute, transport, and consume magic mushrooms in the state of California. If a person wanted to sell them, they would need to be a California Registered Business with a California Seller’s permit and grown on land that was eligible for agricultural production and governed by the California Department of Food and Agriculture.
For the initiative to qualify for the ballot, Decriminalize California will need to gather 623,212 valid signatures from California registered voters to put the initiative on the November 2022 election ballot.
Last month, Florida Democrat State Rep. Michael Grieco introduced the Florida Psilocybin Mental Health Care Act. If passed, it would allow state-sponsored clinics to administer psilocybin for patients suffering from disorders like PTSD, depression and addiction.
“This is not about having some sort of out-of-body experience, this is about micro-dosing. This is about doing it clinically and being done in a very controlled medical safe environment where folks are using this as treatment.” – Michael Grieco – Florida State Representative (D)
States Where Magic Mushrooms are Legal
On 3 November 2020, voters passed a ballot initiative in Oregon that made “magic mushrooms” legal for mental health treatment in supervised settings from 1 February 2021. Oregon passed Measure 109 to legalize psilocybin for people age 21 and older. In another vote, psilocybin was decriminalized. Proponents of psilocybin legalization in Oregon promote its use for medical conditions, such as depression, anxiety, or PTSD. The new law will make psilocybin more accessible to people who need them clinically. Measure 109 will be enacted after a developmental stage is completed, expected to be a two-year process. Washington, DC also decriminalized psilocybin in Nov. 2020. Florida has introduced the Florida Psilocybin Mental Health Care Act, but it has yet to vote on or passed.
Microdosing is a relatively recent phenomenon involving taking very small doses of some popular psychedelic hallucinogens or other drugs. Importantly, this is a very small dose of the psychedelic that is not enough to produce a “trip”, or the hallucinations often associated with these drugs.
As a study in the Journal of Psychopharmacology notes, a technical definition of a microdose would be a dose of a drug that is only 1% of the active dose. However, the more common term for microdosing — a small fraction of a “normal dose” — is rather vague, as it does not provide a defined numerical value. Therefore, the common accepted definition is a small dose that does not cause any intoxication or significant alteration of consciousness. Anecdotal evidence suggests that people tend to take a small dose and then take it regularly or semi-regularly for an extended period. The duration of use varies from person to person.
The Health Benefits
In an original study, published in the Journal of Psychopharmacology, psilocybin produced immediate, substantial, and sustained improvements in anxiety and depression and led to decreases in cancer-related demoralization and hopelessness, improved spiritual wellbeing, and increased quality of life. Some doctors have found a dramatic improvement in overall mental health especially within those that are terminally ill or dealing with life threatening diseases such as cancer.
Researchers say psilocybin may provide a useful tool for enhancing the effectiveness of psychotherapy and ultimately relieving these symptoms. Although the precise mechanisms are not fully understood, experts believe that the drug can make the brain more flexible and receptive to new ideas and thought patterns. In addition, previous research indicates that the drug targets a network of the brain, the default mode network, which becomes activated when we engage in self-reflection and mind wandering, and which helps to create our sense of self and sense of coherent narrative identity. In patients with anxiety and depression, this network becomes hyperactive and is associated with rumination, worry, and rigid thinking. Psilocybin appears to acutely shift activity in this network and helps people to take a more broadened perspective on their behaviors and lives.
Magic Mushroom list of related “penny stocks” in no particular order with Link Reservations (LRSV) joining the sector this morning:
# 1 – Minerco, Inc. (OTCMKTS: MINE) is a Jamaican-based company, who use the tagline “The Magic Mushroom Company” specialize in growing, research, production and distribution of psilocybin mushrooms and marketing worldwide. The company is working on paying off their debt and announced a JV with publicly traded PSYC (see below). MINE got approval for the launch of its coin SHRU on 7 exchanges: Bitcratic, ForkDelta, EtherDelta, Bamboolay, SwitchDex, SaturnDex, and McAfee. These exchanges, with tradeable volume of $400,000,000 daily, will give SHRU / MINE greater investment exposure. MINE is also working with token developers to include SHRU on 5 more exchanges by the first quarter of 2021 and launch its payment gateway. This gateway will allow dispensaries to accept Debit CARD purchases for psilocybin and cannabis that is still federally illegal. Last, MINE was .0001 on December 1, 2020 and peaked at .0225 early February of 2021 for a monster 22,500% gain! Although MINE is off its highs, it still is holding up strong over a penny a share.
# 2 – Global Trac Solutions, Inc. (OTCMKTS: PSYC) Global Trac Solutions “PSYC” has expressed its intent and commitment to positioning itself at the forefront of the psychedelic revolution and as a resource center for discovering and understanding the latest research and business opportunities surrounding psychedelic inspired medicines. In conjunction with the FDA’s more open-minded approach to psychedelic medicines, and as several major U.S. cities continue to approve the decriminalization of psilocybin, investors are speculating that the psychedelic boom could be bigger than that of cannabis. PSYC is your source for current investment related news specific to psychedelic medicines and cutting-edge research improving overall health, moving this sector into the mainstream. Around Halloween of last year PSYC was at a low of .005/share and has since hit a high of $0.065 for a potential 1300% gain for some lucky investors. Global Trac Solutions recently announced a JV with previously mentioned Minerco Inc. (MINE). The company is trading around the .03 to 4 cent range.
# 3 – MindMed Inc (OTCMKTS: MMEDF) is a psychedelic medicine biotech company that discovers, develops and deploys psychedelic inspired medicines and therapies to address addiction and mental illness. The company is assembling a compelling drug development pipeline of innovative treatments based on psychedelic substances including Psilocybin, LSD, MDMA, DMT and an Ibogaine derivative, 18-MC. The MindMed executive team brings extensive biopharmaceutical experience to the company’s groundbreaking approach to developing the next generation of psychedelic inspired medicines and therapies. Things started picking up price wise in September of 2020 when MMEDF was just .35/share and now trades around $4 or an 1100% gain in 6 months’ time.
# 4 – Numinus Wellness Inc. (OTCMKTS: LKYSF) is a mental health and wellness company creating an ecosystem of solutions centred around safe, evidence-based, accessible psychedelic-assisted psychotherapy to help people heal and be well. They recently completed the first legal extraction of Psilocybe mushrooms in Canada by a public company for research and development purposes. Their Numinus Health arm is dedicated to delivering innovative treatments to address physical, mental, and emotional health, through clinics and virtual services. Their Numinus R&D arm is conducting implementation science and leveraging partnerships to beta-test and refine optimal models of psychedelic-assisted psychotherapy delivery, setting the stage for approved routine use in mental health and wellness care. Lastly, the Numinus Bioscience division is focused on developing testing methods and effective formulas for the evolving psychedelics space. Health Canada licenses, scientific expertise, and new technologies facilitate ongoing innovation, and high-throughput contract services generate established revenue. The stock was $0.20/share at the beginning of October last year, 5 months later and 900%+ higher, LKYSF hit a 52-week high of $1.93, and is holding over 700% gains as it still trades around $1.40/share.
# 5 – MycopiaTherapies / PsyBioMed formally 20/20 Global (OTCMKTS: TWGL) is a psychedelic research biotech company that discovers, develops and deploys psychedelic inspired medicines and therapies to address addiction and mental illness. This proprietary development strategy is based on chemical modifications to the known and well understood tryptamine derivatives that significantly modify their pharmacokinetic properties without changing their therapeutic potential. PsyBioMed is assembling a compelling drug development pipeline of innovative treatments based on psychedelic substances. PsyBioMed is assembling a team of professionals with extensive biopharmaceutical experience to assist in the company’s groundbreaking approach to developing the next generation of psychedelic inspired medicines and therapies. Their share price woke up right before the new year, on December 28th, the company was as low as .20/share and has been as high as $8/share less than 2 months later for a whopping 4000% spike! The company is holding ground trading above $7.20’s as of our report.
# 6 – Ehave, Inc. (OTCMKTS: EHVVF) recently announced it would be pioneering a platform for medical practitioners to administer ketamine intravenously to patients at home. Ketamine is primarily used to lessen the amount of potentially addictive pain medication required after certain medical procedures, but it is now being studied as a treatment for major depression, though it has not yet been approved by the FDA to treat depression. In March 2019, the U.S. Food and Drug Administration approved Spravato (esketamine) nasal spray, in conjunction with an oral antidepressant, for the treatment of depression in adults who have tried other antidepressant medicines but have not benefited from them (treatment-resistant depression). Esketamine is the s-enantiomer of ketamine. Ehave recently sold 100% of its Mycotopia Therapy subsidiary (OTC: TWGL), which owns 10% of the PsyTech conferences, to 20/20 Global Inc. As a result of the transaction closing, Ehave controls approximately 75.77% of the outstanding shares of 20/20 Global and has plans to distribute some of the shares to its shareholders. 20/20 Global plans to focus on securing deals in Jamaica and the Caribbean and file with FINRA to change the company name to Mycotopia Therapy. The transaction was the subject of an article in the Jamaica Gleaner, a leading Jamaican newspaper that has been published since 1834. The article is titled “Ehave Magic Mushroom Company to Enter Jamaica – Taps Croskery As Director of Subsidiary, Kaya As Wellness Adviser And Partner.” EHVVF hovered around $0.025/share in early December only to trade at $0.41/share today. The company has climbed over 1600% in less than 2 months.
# 7 – Wuhan General Group, Inc. (DBA M2BIO Sciences) (OTCMKTS: WUHN) through its wholly-owned subsidiary MJ MedTech is a nutraceutical biotechnology company focused on alternative plant-based cannabinoids and psilocybin medical research that develops and commercializes a range of CBD and mushrooms-based products under Dr. AnnaRx, Medspresso and Handcrafted Delights brands. In addition, Anna Morera Leralta’s research and clinical trials with psilocybin are aimed at new therapies that will help patients who suffer from alcohol addiction, mental illness and cardiovascular diseases. Their claim is that they were the first in the market and their mission is to advance botanical-based medicine to the forefront by deploying best-practice science and medicine, clinical research and emerging technologies. This is one of the few companies that has published journal articles of their work. They are also waiting for a name change that could create more awareness for the company. In early November of 2020, WUHN was as low as 0.21/share and recently topped at $1.09/share for a respectable 500%+ in less than 4 months.
#8 – Link Reservations Inc. (OTCMKTS: LRSV) a London based company, is a provider of cannabidiol (CBD) products specifically tailored for pets via its subsidiary LinkResPet.com The company has recently expanded into the health and wellness products for people with the acquisition of DailyLifeCBD. The company just announced they will continue to focus on acquisitions and expanding their product line as they are now taking the formal step to add magic mushroom infused products. LRSV is now pursuing the development and commercialization of treatments capable of improving health outcomes such as depression, post-traumatic stress disorder (PTSD), as well as substance and alcohol abuse disorders. The company plans to have its mushroom infused SKU’s to be organic, non-GMO and vegan certified. After discussions with their manufacturer, goals are to have these new products available for sale in the coming weeks. Around Thanksgiving LRSV was .026/share and as of Friday’s close of $0.084, the company has tripled (300% gains), today’s new will create some hopefully positive volatility, but overall, the company has not seen the liftoff compared to its industry peers as it rose mainly due to its CBD and cannabis association.
After reviewing the list of mushroom penny stocks, it’s easy to make the assessment that these companies have done very well. The potential for huge gains in the penny stock world is like no other and being that “magic mushrooms” are still very early stages of legalization, there is no time like the present to dabble in this emerging sector. Our first 7 penny stocks have seen anywhere from 700% to 22,500% returns in just a small window of time. Being that we are just getting started, who knows where these small cap companies will be years from now. Our list was going to be just 7, but LRSV’s new this morning forced us to lengthen the list to 8.
LRSV may have the best near-term performance as news in regards to their “magic mushroom” involvement just happened today and have only increased 100% since late November of 2020. With its counterparts already popping 700-22500% gains, LRSV could be in store for a “pop” themselves this week.
As more and more states come to the table to potentially legalize mushrooms or the use of chemicals such as psilocybin, investors will dream of future gains. Oregon was first, Washington DC decriminalized and both Florida and California are now pushing, which state(s) will be next?
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Disclosure: Insider Financial and its owners do not have a position in the stocks posted and have posted this article for free without editorial input. This article was written by a guest contributor and solely reflects his opinions.
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