The Future of Psychedelic Therapy
HAVN LIFE SCIENCES (CSE:HAVN)
Havn Life Sciences (CSE:HAVN) has just joined the market with a conservative valuation of C$13.25 million. This presents a highly attractive opportunity for early investors in the emerging psychedelic space.
The company’s pitch is compelling.
Backed by C$4.3 million raised pre-IPO, it is pursuing a twin strategy that combines near-term income generation with substantial long-term upside.
CEO Tim Moore is fired up by the potential, exclusively telling ValueTheMarkets.com:
“OUR ROADMAP THROUGH THE FIRST 12 MONTHS IS FULLY FUNDED. WE WON’T NEED TO GO BACK TO THE MARKET TO RAISE ADDITIONAL FUNDS. BY THE FIRST QUARTER OF NEXT YEAR WE WILL BE REVENUE GENERATING.
“HOWEVER, OUR REAL COMPETITIVE EDGE IS THE EXCITING RESEARCH WE ARE CONDUCTING TO STANDARDIZE PROTOCOLS FOR GROWING PSILOCYBE MUSHROOMS ON A LARGE SCALE. THIS IS A SIGNIFICANT GAP IN THE MARKET, AND WE ARE THE FIRST COMPANY TO SEEK TO FILL IT.”
With a year of licensing and revenue milestones financially covered, Havn Life’s model is designed to see the business through to profitability as quickly as possible while delivering outsize investment returns.
So what is it that is different about this company and why is it worth investigating further?
Two divisions on the path to creating enormous riches – Havn Labs & Havn Retail
HAVN LIFE SCIENCES (CSE:HAVN)
Havn Life Sciences (CSE:HAVN) is at the forefront of a promising, fast-growing market focussed on the commercialization of psilocybin – the active ingredient in magic mushrooms.
The company’s primary long-term goal is to create standardized psilocybin formulas and dosages for researchers.
This is important work.
Current availability on the market is somewhat hit and miss; yet clinical activity and research interest in psilocybin is exploding.
Demand is soaring for safe, quality-controlled product, so a library of reliable psychoactive compounds for supply to researchers could prove to be a gold mine.
For this exact reason, Havn Life Sciences (CSE:HAVN) is spending C$800,000 on a purpose-built laboratory at the University of British Columbia through its division Havn Labs.
Staffed with expert biochemists, this first-class facility will be ready to launch in early 2021.
This alone could be a game changer for the expansion of the psychedelic medicine industry, with first revenue expected in only three to five years.
A proprietary formula for the large-scale growth and production of Psilocybe mushrooms and the extraction of psilocybin promises a long-lasting and lucrative revenue stream for Havn Life Sciences (CSE:HAVN).
However, the company’s second division, Havn Retail, is what is getting investors truly excited.
If things play out as expected, this side of Havn Life Sciences’ (CSE:HAVN) business could see it through to fulfilling its grand plan with minimal shareholder dilution along the way.
Havn Retail will target the massive consumer wellness market by creating novel and fungi-based ‘nutraceuticals’ — supplements with additional health benefits.
Chief Psychedelic Officer Ivan Casselman is developing novel compounds from everyday legal mushroom varieties like Reishi and Cordyceps that can reduce inflammation, ease stress & anxiety, lift mood and enhance creativity.
This rapidly growing natural health products market is expected to be worth US34.3 billion globally by 2024.
Crucially, there are zero regulatory hurdles to clear.
These health boosters can be sold under the same legislation that governs legal products like melatonin and glucosamine.
“We already have three of these formulas ready to go,” Moore went on to tell us.
Once developed, products can be cleared for sale by Health Canada in as little as 60 days.
Then it’s straight on to Havn Retail’s e-commerce store as well as local and national retailers.
This strategy means the company expects to be in revenue as soon as Q1 2021.
Try to find another psychedelic company from the small handful in the space with such a promising dual revenue model.
You won’t. Why?
They don’t exist.
The pioneers behind Havn Life Sciences (CSE:HAVN)
HAVN LIFE SCIENCES (CSE:HAVN)
So, who are the experts behind this ground-breaking company?
Tim Moore’s opposite number, Co-CEO Susan Chapelle, started Havn Life Sciences (CSE:HAVN) with a singular vision.
To profit from the birth of this exciting, emergent industry.
The serial cannabis entrepreneur and two-time civic politician brings 25 years of leadership to the table in the Canadian health, non-profit and private sectors.
Not only that, but Chapelle is a researcher with work published in numerous peer-reviewed journals.
Notably, she spent ten years at the University of New England as a co-investigator on a National Institute of General Medical Science grant. Alongside a team, her work here included studies into the mechanisms of post-surgical adhesion formation, neural regeneration from a crush injury, breast cancer metastasis in manual therapy, morphine inhibition of intestinal peristalsis after surgery, and the mechanisms of repetitive strain injury.
Chapelle has attracted a multidisciplinary team at Havn Life Sciences (CSE:HAVN), including advisor Sheila Copps, Canada’s first-ever female Deputy Prime Minister.
In government, Copps was a prominent advocate for marijuana legalization.
Add executive co-chair Barinder Rasode — who served on the board of British Columbia’s largest health authority and co-founded a consultancy firm focused on cannabis regulatory expertise — and you have a winning combination.
Growing faster than cannabis
HAVN LIFE SCIENCES (CSE:HAVN)
Where we stand now with psilocybin closely mirrors the legal cannabis industry ten years ago.
When cannabis legalization hit, growers had to shift rapidly from hiding their operations to scaling up to meet explosive demand.
Now, ask yourself this.
Can you afford to miss the chance to get in on the ground floor of the next sector that could deliver such profits?
The medical pedigree of Havn Life Sciences (CSE:HAVN)
HAVN LIFE SCIENCES (CSE:HAVN)
Havn Life Sciences (CSE:HAVN) has applied to Health Canada for a research license, which it expects to secure by fall 2020. This will allow it to test, analyze, and develop its methods and protocols for psilocybin compound growth, extraction and production.
It will then submit a request for “licensed dealer” status to the health regulator that allows it to begin growing and selling its library of compounds to researchers.
With Numinus (TSX-V:NUMI) recently becoming the first psychedelics firm to receive licensed dealer status in Canada, Havn Life’s (CSE:HAVN) journey to generating profits from standardizing the future of modern psychedelic medicine looks bright.
There is clear, long-term, peer-reviewed evidence that psychedelic therapies are effective in treating stubborn and chronic mental illnesses.
And there could hardly be a better time for novel therapies for mental distress.
Anxiety is booming worldwide, and the Covid-19 pandemic has greatly amplified and exacerbated this trend.
Antidepressants have been on the pharmacological menu since Iproniazid and Imipramine in the 1950s.
But lab-derived pills and powders have summarily failed to produce positive long-term results.
After decades of backward-thinking prohibition, regulators are now being won over by the potential for psychedelic compounds to improve the lives of the many millions around the world suffering from conditions like PTSD, depression, and OCD.
Millions of dollars are now flowing into psychedelic medicinal research, creating a new avenue in a treatment market for mental illnesses and neurodegenerative disorders estimated to be worth US$240bn by 2026.
A true paradigm shift is underway.
In 2018, the world’s leading health regulator, the FDA, opened the door by designating “breakthrough therapy” status to London-based mental health start-up Compass Pathways for its research into psilocybin as a treatment for depression.
Compass revealed that psilocybin was safe for human consumption, and the FDA has since gone on to award this status to more psilocybin research projects.
That means early investors in successful psychedelic medicinal companies have a potential gold mine on their hands.
But the barriers to entry are high.
Only the top scientific minds are capable of winning the tightly controlled regulatory approvals required to operate in this field.
This is about as robust an economic moat as any company could ever hope for.
With fewer players in the potentially enormous psychedelic medicine space than typically present in other sectors, this means those that are fortunate enough to work here have an incredible opportunity in front of them.
Now recall Havn Life Sciences’ (CSE:HAVN) twin model.
HAVN Retail’s immediate revenue potential means the stock is on a path to supporting itself financially.
The nutraceutical supplement market is taking the world by storm – predictions for the global market to 2027 reach as high as US$722.5 billion!
And remember, Havn Life Sciences (CSE:HAVN) has banked $4.3 million to fund it through 12 months of milestones.
This means it has the potential to deliver incredible shareholder value, while still pursuing that blue-sky potential with HAVN Labs.
It is this blend of lucrative short and long-term revenue streams that makes Havn Life Sciences (CSE:HAVN) such an attractive stock pick.
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