Mind Medicine (OTCMKTS:MMEDF) may currently trade over the counter for investors in the United States. However, thanks to a series of recent news items, MMEDF stock is on the move Friday. So what do investors need to know about the up-and-coming psychedelics play?
To start, what exactly is MindMed? Well, the biotech company develops and deploys psychedelic medications for the treatment of addiction and mental illness. Essentially, the company derives its medications from psychedelic drugs, but works to remove the hallucinogenic effects of those drugs. Additionally, it works to allow patients to access these medications through traditional channels. To do this, it works with psilocybin, LSD, MDMA, DMT and Ibogaine derivative 18-MC.
Also importantly, MindMed has two candidates in its psychedelics-derived pipeline. The first is working to treat the underlying causes of addiction. The second is examining the effects of microdosing LSD on increasing focus and decreasing anxiety. Both of these candidates are currently in clinical trials.
So what exactly has MMEDF stock on the move today?
To start, investors are likely encouraged by news that MindMed announced the closure of a finance round worth $27 million, or 34.5 million CAD. Importantly, this means that the company has now raised a total of $94.8 million or 121.4 million CAD. According to the company, this shows that there is currently a strong market for such psychedelics-derived drugs. Where will this money go? As MindMed lays out in the press release, it will use proceeds from the deal to expand its pipeline and explore what it calls digital therapeutics.
While this news is exciting, there is a bigger-picture reason that MMEDF stock looks hot today.
Why MMEDF Stock Is Climbing Higher Today
As investors process news that Mind Medicine now has more cash to work with, they should also be aware of a few more catalysts. The first is that, broadly, sentiment on psychedelic drugs is rapidly changing. As we have seen this year, more researchers, lawmakers, corporations and individuals are starting to see psychedelics as preferable options to standard pharmaceutical treatments for mental illness and addiction. With that in mind, MindMed touts itself as the first psychedelic biotech company to come public in 2020.
And since coming public, things have changed even more rapidly. Compass Pathways (NASDAQ:CMPS) started trading on the Nasdaq Exchange, becoming the first psychedelics-oriented company to debut on a major U.S. exchange. Oregon and Washington, D.C. made waves on Election Day with moves to decriminalize psychedelics. For MindMed, the funding raise also helped it achieve unicorn status in Canada, where it primarily trades on the NEO Exchange.
As InvestorPlace analyst Luke Lango has written, a shroom boom is coming. Taking advantage of that, MindMed has applied to up-list on the Nasdaq Exchange. Such a move would boost its legitimacy in the eyes of many American investors, and could potentially further boost MMEDF stock.
So what should you do right now? Many things are going right for the psychedelics market. Keep an eye on MindMed and its progress with the Nasdaq. Know that further growth, and a Nasdaq listing, would likely be upside catalysts for MMEDF stock.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer with InvestorPlace.com.