The burgeoning psychedelics sector in many ways resembles the cannabis industry of a decade ago. With rising interest in psychedelic medicine, analysts project that the market could grow at a 16.3% compound annual growth rate to $6.85 billion by 2027.

There are a growing number of companies participating in the industry, most of which are pursuing pharmaceutical development paths that will require significant funding and lengthy commercialization timelines—with the exception of a handful of innovative companies.

Let’s take a look at MagicMed Industries’ recent oversubscribed private placement and its plans to use the proceeds to build out its unique psychedelic-derived drug discovery platform.

Strong Interest in Capital Raise

MagicMed Industries recently closed an oversubscribed private placement for gross proceeds of $1,642,880 in conjunction with Mackie Research Capital. Following the transaction, the company has 20,111,520 common shares held by 186 shareholders.

Management intends to use the proceeds, in part, to expand its scientific team and expedite the development of its psychedelic drug discovery platform—the Psybrary. In developing the library, the company is opening the door to near-term drug development partnerships.

Click here to learn about investing in the psychedelics space and receive corporate updates

CEO Dr. Joseph Tucker on MagicMed’s recent capital raise

In addition to expanding its scientific team, the company hopes to establish a university partnership, file multiple patents and onboard its first partner in 2020. These efforts will continue in 2021 when the company hopes to reach a positive cash flow and ultimately go public.

Powering Psychedelic Drug Discovery

The Psybrary is a portfolio of patented derivative molecules that offer an accelerated pathway for partners to develop psychedelics-based medicines. Each derivative molecule is a potential patented drug development candidate for biotech and pharmaceutical partners.

While the compositions of natural and traditional synthetic psychedelic molecules aren’t patentable, the compositions of new derivative molecules that comprise the Psybrary are patentable as are the company’s novel manufacturing methods.

The company’s business model is to license these patented molecules to biotech or pharmaceutical companies that would take them through clinical trials. In addition to an upfront licensing fee and milestone payments, the company could generate royalties on commercialized products.

Click here to learn about investing in the psychedelics space and receive corporate updates

Why Investors Should Take Note

The Psybrary will initially focus on developing derivatives to psilocybin (magic mushrooms) before expanding into other psychedelic substances, such as MDMA, ketamine, ibogaine, mescaline and ayahuasca. Investors may be interested in a couple of unique features of the business model.

CEO Dr. Joseph Tucker explains the unique opportunity for investors in the psychedelics space

The licensing model could generate high margin, recurring revenue. By avoiding the costs associated with clinical trials, the company maintains low overhead and generates fees by out-licensing intellectual property. Commercial products could generate recurring royalty revenue, too.

With many proprietary molecules and partners, the company’s shareholders could benefit from a highly diversified revenue stream. Pharmaceutical compounds could span multiple conditions and the diversified partnership base serves to derisk revenue source considerations.

Click here to learn about investing in the psychedelics space and receive corporate updates

What’s Next?

MagicMed Industries is well-positioned after having raised over $1.6 million to expand its scientific team and build out its Psybrary. Investors may want to take a closer look at the stock as it gears up to build partnerships and ultimately commercialize its derivatives portfolio.

The company hopes to reach positive cash flow and go public during the first or second quarter of 2021. In the following year, it hopes to begin receiving multiple milestone payments and diversify into consumer goods categories over time.

For more information, visit the company’s website at www.magicmedindustries.com or download the company’s investor presentation.

Disclaimer

The above article is sponsored content. CannabisFN.com and CFN Media, have been hired to create awareness. Please follow the link below to view our full disclosure outlining our compensation: http://www.cannabisfn.com/legal-disclaimer/

This article was published by CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the industry’s leading agency and digital financial media network dedicated to the burgeoning CBD and legal cannabis industries. Call +1 (833) 420-CNFN for more information.

About Ryan Allway

Mr. Allway has over a decade of experience in the financial markets as both a private investor and financial journalist. He has been actively involved in the cannabis industry since its inception, covering public and private companies.

CALGARY, AB, Sept. 2, 2020 /CNW/ – MagicMed Industries Inc. (“MagicMed” or the “Company“) is pleased to announce that it has completed, and oversubscribed, its previously announced brokered private placement (the “Offering“) for gross proceeds of $1,642,880.  Pursuant to the Offering, the Company issued 6,571,520 new common shares at a price of $0.25 per common share.  The Company now has 20,111,520 common shares outstanding held by 186 respective shareholders.

The Company intends to use the net proceeds from the Offering for general working capital purposes and to expand its scientific team to expedite and amplify development of the MagicMed Psybrary^TM.  While the compositions of natural and traditional synthetic psychedelic molecules are not patentable, the compositions of the new derivative molecules that comprise the MagicMed Psybrary^TM are patentable, as are MagicMed’s proprietary methods of manufacturing its new derivative molecules.

“The MagicMed Psybrary^TM encompasses the patent portfolio and psychedelic derivative molecules that we offer as an acceleration platform to partner companies in this developing industry,” said MagicMed CEO, Dr. Joseph Tucker.  “Each derivative molecule in the Psybrary^TM is a potential patented drug development candidate for our future biotech and pharmaceutical partners.”

The Offering was made by way of private placement in Canada pursuant to exemptions from prospectus requirements under applicable securities laws. All securities issued in connection with the Offering are subject to resale restrictions in accordance with applicable securities laws.

Mackie Research Capital Corporation (the “Agent“) acted as agent in connection with the Offering. The Company has paid to the Agent a cash commission equal to 8.0% of the aggregate gross proceeds of the Offering raised from eligible purchasers in addition to a work fee and certain expenses of the Agent.

About MagicMed
MagicMed Industries intends to partner with pharmaceutical and other companies to develop psychedelic-derived medicinal and licit consumer goods products. MagicMed’s molecular derivatives library, the Psybrary^TM is anticipated to be an essential building block from which industry can develop new patented products. The initial focus of the Psybrary^TM is on psilocybin, which is expected to be opportunistically expanded to other psychedelics like MDMA, ketamine, Ibogaine, Mescaline, and Ayahuasca. For more information, please visit our website at www.magicmedindustries.com  @MagicMedInd.

Forward Looking Statements 

This press release contains forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and assumptions and accordingly, actual results and future events could differ materially from those expressed or implied in such statements. You are hence cautioned not to place undue reliance on forward-looking statements. All statements other than statements of present or historical fact are forward-looking statements, including statements with respect to MagicMed’s future business plans and partnerships, the anticipated uses of MagicMed’s patents and the development of the Psybrary^TM. Forward-looking statements include words or expressions such as “proposed”, “anticipated”, “will”, “subject to”, “near future”, “in the event”, “would”, “expect”, “prepared to” and other similar words or expressions.

Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking statements. Some of the risks and other factors could cause results to differ materially from those expressed in the forward-looking statements which include, but are not limited to: the ability of MagicMed to secure patent protection; the ability of MagicMed to enter into partnership agreements or other arrangements; unforeseen challenges in carrying out the business plans of MagicMed; trends in the future use of psilocybin; general business, economic, competitive, political and social uncertainties; the state of capital markets; risks relating to general economic, market and business conditions; and other unforeseen events, developments, or factors causing any of the aforesaid expectations, assumptions, and other factors ultimately being inaccurate or irrelevant. The forward-looking information contained in this news release is expressly qualified by this cautionary statement. We disclaim any obligation to update or revise these forward-looking statements, except as required by applicable law.

SOURCE MagicMed Industries Inc.

For further information: Joseph Tucker, PhD, CEO, MagicMed Industries Inc., Email: [email protected], Phone: 508-627-0485; Dave Burwell, Investor Relations, VP, The Howard Group, Email: [email protected], Phone: 403-410-7907

Related Links

www.magicmedindustries.com

This article was published by CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the industry’s leading agency and digital financial media network dedicated to the burgeoning CBD and legal cannabis industries. Call +1 (833) 420-CNFN for more information.

About Ryan Allway

Mr. Allway has over a decade of experience in the financial markets as both a private investor and financial journalist. He has been actively involved in the cannabis industry since its inception, covering public and private companies.

Most people think of white buttons at the grocery store when they think of mushrooms, but in reality, there are hundreds of different kinds of mushrooms. Functional mushrooms—like functional foods and beverages—are mushroom varieties that provide a health benefit, ranging from run-of-the-mill vitamins and minerals to important nutrients, including selenium, potassium, riboflavin, niacin, proteins, and fiber.

As with cannabis and other plant-based medicines, the beneficial properties of functional mushrooms can be extracted into a wide range of formats. These formats provide patients and consumers with different product options, improved bioavailability and greater consistency, which opens the door to a range of medical and consumer use possibilities.

Let’s take a closer look at functional mushrooms, how extraction plays a role in product development and how Pure Extracts Inc. (CSE: PULL) (listing pending) plans to capitalize on the space.

Functional mushrooms provide a wide range of potential health benefits that researchers are only starting to understand. While some have become popular superfoods, others are an important source of vitamins for supplements.

Some popular functional mushrooms include:

• Reishi:  a Traditional Chinese Medicine ingredient that supports restful and healthy sleep, reduces stress and boosts the immune system.
• Chaga: rich in antioxidants that could help strengthen the immune system—it was even used as a coffee ration in World War II.
• Shiitake: a widely known superfood with nine amino acids and a diverse range of important vitamins and minerals.
• Oyster mushrooms: contain beta-glucans that could improve cholesterol and blood sugar markers, as well as boost the immune system.
• Trumella: a common source for plant-based vitamin D as it contains more of the vitamin than any other known food source.

Psilocybin has become one of the most popular mushrooms following the movement to legalize psychedelics across several states and some countries. Over the past couple of years, researchers found that the mushroom’s psychedelic properties could have wide ranging implications across psychology and psychiatry practices targeting mental illnesses.

Click here to learn more about investing in mushroom extraction technology

Many of the world’s most popular medicines originated from plants—specifically, plants in the Amazon rainforests. Of course, modern medicine doesn’t typically involve consuming or smoking exotic plants—with the exception of medicinal cannabis use. The beneficial properties are extracted into safe and consistent formats that physicians can prescribe.

Vitalis Extraction Technology – Source: Vitaliset

The same is true for over-the-counter supplements that extract beneficial properties from plants and other sources and combine them into a more palatable format. While supplements aren’t subject to as much regulation, extraction can help them meet FDA guidelines for safe production and an improved shelf life compared to the original formats.

There are many different extraction methods used depending on the plant or input source, but CO2 extraction has become one of the most effective modern methods. When pressure is applied to CO2, the gas turns into a liquid that can be used as a very inert, safe, liquid solvent to extract oils from plant biomass, such as mushrooms, hemp and cannabis.

Click here to learn more about investing in mushroom extraction technology

Functional mushrooms are experiencing a renaissance fueled by interest in psilocybin for the treatment of mental health disorders. While there are a growing number of cultivators, investors may want to take a closer look at the extractors that are focused on functional mushrooms as potential opportunities given their innovative business models.

Pure Extract Technologies Inc. – which plans on going public on the Canadian Securities Exchange (CSE) in Q3 of this year using the symbol “PULL” – has built an EU-GMP compliant extraction facility in British Columbia with an initial focus on extracting cannabis and long-term plans to extract mushrooms. Extracts in both categories are expected to see tremendous growth over the coming years.

The business model is compelling for investors. After signing agreements with Licensed Producers, the Company either charges a toll for extraction services or produces white-label products on behalf of other companies, creating very little overhead and predictable, recurring revenue with attractive margins.

While the Company’s initial business will come from tolling and white labeling, Pure Extracts anticipates creating in-house brands that will benefit from the ready supply of biomass from Licensed Producers and its in-house extraction (i.e., at a lower cost). These dynamics could create an attractive business line in the future.

Functional mushrooms are quickly becoming a preferred health food and potential source of treatment options for mental health disorders. While there are a growing number of companies focused in the space, investors may want to take a look at extraction providers, such as Pure Extract Technologies Inc. (CSE: PULL), given its strong business model and unique focus.

For more information, visit the company’s website or download their investor presentation.

Disclaimer

The above article is sponsored content. CannabisFN.com and CFN Media, have been hired to create awareness. Please follow the link below to view our full disclosure outlining our compensation: http://www.cannabisfn.com/legal-disclaimer/

This article was published by CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the industry’s leading agency and digital financial media network dedicated to the burgeoning CBD and legal cannabis industries. Call +1 (833) 420-CNFN for more information.

About Ryan Allway

Mr. Allway has over a decade of experience in the financial markets as both a private investor and financial journalist. He has been actively involved in the cannabis industry since its inception, covering public and private companies.

There are only a few times that investors get an opportunity to get in front of an emerging industry. Think about cannabis or electric vehicles in recent times. There can be tremendous upside, but there is generally a steep learning curve because the markets are so nascent and unique that everything is a guessing game about the best business strategies.

One of the latest emerging trends is centered on mushrooms. Here, investors get to enjoy shortening the learning curve because of the similarities between psychedelics and cannabis. Simply, the cannabis industry did most of the heavy lifting with swaying the thinking of lawmakers and lifting negative stigmas attached to once-illicit drugs with respect to bona fide value to fill gaping holes in medicine where traditional drugs have failed miserably. 

It also taught investors, from self-directed to institutions, where real value can be found. Fact is that most companies lurched into the marijuana space trumpeting massive cultivation facilities and plans to keep expanding. Greenhouse space was king. Like most kings, it had an expensive lifestyle, leaving those leading growers with huge cash burns and net losses.

A better plan was to seek out businesses integral to the industry with better capex and operating models. As often happens, technology and innovation were the answer, pointing squarely at extractors. These companies don’t assume the risk of growing the plant, but if properly integrated, can control the rest of the supply chain to deliver an ingredient or a finished consumer product.

Click here to learn more about investing in mushroom extraction technology 

Legal Mushrooms: A Two-Prong Play

Forget about so-called “magic” mushrooms, those that contain psilocybin and psilocin, the psychedelic components responsible for the “trip” when ingested. Functional mushrooms – those that are free of psilocybin and psilocin – represent a growing market themselves. 

In fact, the functional mushroom market is one of the fastest growing segments in consumer packaged goods.

These mushrooms, which have names like Lions Mane, Turkey Tail, Shiitake, Reishi, Cordyceps and Chaga, offer a multitude of known benefits pertaining to health, sleep, beauty and more. To that point, the global medicinal mushroom market is expected to reach $13.88 billion by 2024, as the trend accelerates, according to a presentation by Pure Extract Technologies Inc. (Pure Extracts) CSE: PULL (listing pending), a privately-owned plant-based extraction company expanding its capabilities to include mushrooms. 

 “Even though people have been utilizing the therapeutic benefits of mushrooms for centuries, it is really only now starting to become a trend that Main Street and Wall Street are recognizing,” commented Doug Benville, founder and COO of Pure Extracts, in a phone conversation with Cannabis FN. “We’re leveraging our experience in carbon dioxide and ethanol extraction for full spectrum cannabis products to take a leadership position in mushrooms, first with functional and then psychedelic.”

The Company is starting with tincture and soft gel products from functional mushroom extracts, with plans to move into beverages and nasal sprays during Q4 this year and psychedelics early in 2021.

Click here to learn more about investing in mushroom extraction technology

Benville is joined by some household names betting psychedelics are the next frontier in medicine. Last year, Shark Tank billionaire Kevin O’Leary and Canopy Growth co-founder Bruce Linton teamed up as investors in Toronto-based startup Mind Med.

While psilocybin remains illegal at the national level in the U.S. and Canada, it can be researched under special licenses. To that end, there is a growing body of clinical evidence supporting anecdotal references that psychedelics can provide relief for hard-to-treat diseases and conditions like PTSD, bi-polar, drug and alcohol dependence, obesity, narcolepsy, OCD, Alzheimer’s and ADHD. 

With the help of $17 million in donations, Johns Hopkins in September opened its new center for psychedelic research. 

Also suggesting growing acceptance and recognition of psilocybin, in March 2019, the FDA approved the nasal spray Spravato (esketamine) 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). Despite a restricted distribution system owing to risks of misuse, sales of Spravato are forecast to reach $1.3 billion annually by 2024.

Out in Front & De-Risked 

Headquartered just north of Whistler in Pemberton, British Columbia, Canada, Pure Extracts has a distinct advantage over any potential competition with its 10,000 square-foot purpose-built facility and bulletproof methodology learned through years of cannabinoid extract production. Development is underway to expand the facility to 25,000 square feet, including dedicated lab and packaging spaces.

Pure Extracts is re-defining mushroom extraction. “We’re not just going to produce simple extracts like some companies already do for functional mushrooms. We’re fully integrated, scalable and using modern technologies to effectively and efficiently produce non-psychotropic nutraceuticals and next-generation functional mushroom products,” said Benville.

To that end, the Company has inked an advisory agreement with Dr. Alexander MacGregor, founder of the Toronto Institute of Pharmaceutical Technology (TIPT).

Management believes that overcoming the industry hurdle of exorbitant costs for psilocybin will make them the go-to manufacturer as studies pick-up on psychedelics. Currently, prices for a gram can be as high as $10,000, a price point that Pure Extracts expects to cut significantly while maintaining high margins.

Planning to conduct business worldwide, the Company’s facility is built to European Union Good Manufacturing Practices (EU GMP). Domestically, management is presently awaiting approval of a Standard Processing License from Health Canada, which will have a cascade effect with orders already on the books.

Notably, expansion into mushrooms is de-risked by these current cannabis and hemp agreements, including tolling agreements signed for 120,000 kilograms of annual capacity. Pure Extracts also has an exclusive Canadian and international license signed to produce a cannabis-based gummy for an unnamed “large U.S. alcohol brand”.

Simultaneously, the Company is prepping to re-launch its Pure Pulls rechargeable cannabis vape pens in the second half of this year.

While companies jump on the psychedelic bandwagon, Pure Extracts stands out by being a first mover in the extraction space. Regardless which avenue a company goes down with mushrooms, they are going to need extraction services at the minimum. With the growing popularity of mushrooms, the Company seems to be timing its IPO – planned for the coming months – absolutely perfectly.

Click here to learn more about investing in mushroom extraction technology

Pure Extracts Company Contact:

Aaron Wong

Business Development

[email protected]

Disclaimer

The above article is sponsored content. CannabisFN.com and CFN Media, have been hired to create awareness. Please follow the link below to view our full disclosure outlining our compensation: http://www.cannabisfn.com/legal-disclaimer/

This article was published by CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the industry’s leading agency and digital financial media network dedicated to the burgeoning CBD and legal cannabis industries. Call +1 (833) 420-CNFN for more information.

About Ryan Allway

Mr. Allway has over a decade of experience in the financial markets as both a private investor and financial journalist. He has been actively involved in the cannabis industry since its inception, covering public and private companies.