Other Psychedelic Stocks Get Cheaper As atai Gets More Expensive

If atai trades within the anticipated way off its IPO, it’ll quickly have an industry limit more than the combined market caps of each and every other psychedelic medication public business today

Investors in psychedelic shares may be mindful that atai Life Sciences simply raised another big whack of money. The business included $157 million in its show D Financing Round.

According to Bloomberg, insiders crunching the true numbers on this offering say that it implies a valuation of roughly $2 billion for atai.

It was right after atai’s $125 million Series C Financing that atai announced its intention to go public in the spring of 2021. At that time, anonymous insiders were reporting that atai would seek an IPO valuation “between $1 and $2 billion”.

In a span of 6 weeks, it appears that the price-tag for atai has risen substantially.

Then there is the rest of the drug that is psychedelic.

Selloff in psychedelic medication shares

Spurred on by current weakness within the wider areas, psychedelic medication shares have actually returned all their 2021 gains & most are at a negative balance to start out the brand new year.

Valuations are receiving acutely compressed for many of the organizations.

As with this industry leader MindMed Inc (CAN:MMED / US:MMEDF) has nearly fallen by half from its 2020 high (CAD$6.47) morning.

Cybin Inc

(CAN:CYBN / US:CLXPF), which has raised CAD$90 million in less than 6 months and has a psychedelic drug in a Phase 2 clinical trial has a market cap of only CAD$208 million.MindMed’s market cap is now less than half of the valuation that is implied atai. Cybin has 1/10th the marketplace limit.Then there was Mind Cure Health (CAN:MCUR US:MCURF that is/). MINDCUR went public September that is last and raised CAD$29.6 million. However it is presently trading at

less than 2 times cash.This is even though MCUR is launching its type of nootropics, it is is getting ready to start its first psychedelics-assisted psychological health clinic in might, plus it has established its full psychedelics R&D program – and contains a renowned researcher

directing its TBI research.We Today can talk about atai currently being valued at

more than double MindMed

,

more than 10X Cybin, or 60X as much as MINDCURE. But what about when atai has its own IPO?Compass Pathways (US:CMPS) quickly tripled off its own IPO. Virtually no one got in below $25 – 50% above its IPO valuation.Huge build-up for atai IPOThe atai IPO is even more eagerly anticipated than that of CMPS. Atai has a much larger psychedelics platform.But let’s assume it merely trades equal to CMPS. That would mean atai quickly soaring to a $6 billion valuation – with no investors that are retail in below $3 billion.

If Other stocks that are psychedelic priced the same at that time, it would give atai

over 6X the market cap of MindMed

,

over 30X the market cap of Cybin

, and more than 150X as much as MINDCURE.At even 50% above its valuation that is current(3 billion), atai could have triple industry limit of MindMed, almost 50X the marketplace limit of Cybin, and approximately 80 times just as much as MINDCURE.Psychedelic Inventory Watch has recently addressed this presssing issue previously. This was when atai was being valued between $1 – $2 billion and other stocks that are psychedelic exchanging 30 – 50% more than today.

We crunched the figures in exactly the manner that is same that time. And even then, we concluded that investors would likely get more value for their dollar in other stocks that are psychedelic

Now, with atai higher priced as well as other stocks that are psychedelic cheaper, this becomes a no-brainer.Unless you’re an insider or an institution able to buy into the IPO financing, you

will

overpay for atai, relative to every other publicly traded psychedelic stock

.Psychedelic stock investors who have been putting aside money to invest in atai – based on vastly valuation that is different – need certainly to revisit their decision-making right here.atai Will not

be the value proposition that is best for investors

When other stocks were near their highs and atai was being valued between $1 and $2 billion, buying into atai looked attractive. With atai significantly more expensive and other psychedelic stocks much cheaper, we are now looking at an value that is entirely different.

Overpay for atai, or get far more for heavily-discounted psychedelic stocks to your money that are already trading?

We are not talking about fly-by-night companies here. Since the Compass IPO,

these public companies have collectively raised ~US$400. That’s nearly 50% more than atai has raised over the period that is sameYet at a $6 billion market limit,

atai could have an increased valuation than everybody else within the sector – combined

. Another NASDAQ bubble stock.(*)No one is knocking the potential of atai to be an important player (and industry frontrunner) within the rising drug industry that is psychedelic. Psychedelic Stock Watch has been a backer that is vocal(*)But is atai worth more than everybody else in the market combined?(*)No.(*)If atai trades within the anticipated way off its IPO that is upcoming will quickly turn to the better value opportunities elsewhere in the sector – just as they did when Compass went public. And other drug that is psychedelic quickly outperformed CMPS.(*)Forward-looking investors can anticipate this trading and commence scooping up these other bargain-priced shares (*)before(*) that rotation begins.(*)DISCLOSURE: The author holds stocks in MindMed Inc, Cybin Corp and Mind Cure wellness. Mind Cure wellness is a customer of Psychedelic inventory Watch.(*)

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