A few weeks ago, Psychedelic Capital held an event online that discussed various ways to carry out one’s due diligence with regard to investing in psychedelics. The discussion was hosted by Richard Skaife, a partner in the investment group Conscious Fund.
The experts on the panel included Zuber Lawler, partner; Jayashree Mitra, BDO Capital Advisors director of acquisitions and mergers; Michael Astone; and Ambria Capital director, Cody Shandraw.
We have seen the psychedelics market grow as more and more research comes to light regarding the various benefits these substances have, with the potential for many more discoveries. This particular sector is now in pursuit of capital with investors in countries such as Canada being able to buy stocks on various exchange platforms.
For infant industries that are just starting out, due diligence is especially important for an investor. Before making a decision on whether to invest in a psychedelic company, it’s recommended that you look into the reputation of the individuals who head the firms you may be interested in. This will inform you about the company’s credibility as well as the management’s record of performance in the industry.
In many industries, people tend to focus on results; however, when it comes to the medical space, potential investors may want to center on the science and technology that supports a psychedelic company’s field or research.
Also, keep in mind that you’ll also need skilled people working on your team, people who can conduct clinical trials and who have knowledge and experience working with drugs and chemicals.
Additionally, as a retail investor you should look into the share structure of companies you want to invest in before you actually invest. Studying a company’s debt agreements, understanding its obligations, and assessing its debt line and balance sheets is also recommended.
Furthermore, a prospective investor wishing to invest in any industry should also study a firm’s corporate governance bylaws as well as its shareholder agreements. This will provide you wkith a better outlook on the firm’s management structure.
Another panelist, MNP business advisor Mitchell Osak, explained that investors should know the value of what their funds can get for them, including looking over the capitalization table of the firm, or the share types offered to people and the firm’s ownership. In addition to this, before investing, all prospective investors should consult an advisor. This will ensure that you get value for any investment you make.
The functional mushrooms and psychedelics space has many noteworthy players. One of them is Pure Extracts Technologies Corp. (CSE: PULL). The plant-extracts company recently added a new vertical (functional mushrooms) to its interests and looks set to take pole position on matters of developing and commercializing products in this space.
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