Analysts' Ideas of the Week · 2/9/2021 · seem to still be trading on the information of Jeff...

Analysts' Ideas of the Week Introducing Reddit Sentiment Tracker

February 8, 2021

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Click here to view FRC’s complete list of top picks

PLEASE READ THE IMPORTANT DISCLOSURES AT THE BACK OF THIS REPORT

Reddit Sentiment Tracker

We started tracking Reddit considering the impact retail investors had on the overall market in the past few weeks, as seen from the large price movements of GME, AMC, and silver. Our goal is to identify potential movers for the coming week. For this, we tracked some of the most discussed stocks in the past week (table below). We noticed that the top two (GME and AMC) are experiencing a decline in the number of discussions, while there is a significant increase in the Reddit score (an indicator of volume of mentions) for Amazon (NASDAQ: AMZN) and Blackberry (TSX: BB). Based on this, we believe the biggest movers this week are likely to be these two stocks. We anticipate short-term downward pressure on AMZN as retail investors seem to still be trading on the information of Jeff Bezos stepping down as CEO. We have a positive outlook on BB, given the company’s renewed focus in the cybersecurity space and a low EV/R of 7x vs the sector average of 9x.

Most Discussed Stocks February 8, 2021Company Ticker Sector Reddit Score % change (7d) YTD 1-Week 1-YearGameStop Corp. GME Consumer Discretionary -5.84% 235% -41% 1,393%Nokia Oyj NOK Technology -9.17% 8% -7% 0%AMC Entertainment Holdings Inc. AMC Consumer Discretionary -67.43% 197% -20% -9%BlackBerry Ltd. BB Technology 206.99% 103% 4% 127%

Amazon.com Inc AMZN Consumer Discretionary 2,301% 3% -2% 56%

AVERAGE 109% -13% 313%

MIN 3% -41% -9%

MAX 235% 4% 1,393%

Indexes YTD 1-Week 1-Year

S&P 500 6% 3% 16% Source: Yahoo! Finance, Unbiasedstock.com, Reddit, and FRC

FRC Top Picks

The following table shows last week’s top five performers among our Top Picks, including three junior resource companies (two electric vehicle metals and one gold), one cannabis, and one betting/gaming company. E3 Metals (TSXV: ETMC), up 34% WoW, has been the top performer for two weeks in a row, on the back of a $7M bought deal financing, and the opening of a direct lithium extraction development and testing facility in Calgary. Additional comments are presented later in this report.

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Top Five Performers Last Week

Source: FRC

Our top picks were up 83% (on average) since the initiation of coverage vs the benchmark’s (TSXV) 16%.

Source: FRC

Performance by Sector

Source: FRC





Our complete list of top picks (updated weekly) can be viewed here. The following tables presents changes in this AIW in ratings/fair value estimates/EPS

projections of companies under coverage:

Source: FRC

Weekly Mining Commentary

Global equity markets rallied in the past week due to a continued decline in new cases

of COVID-19 in most of the hardest nations, vaccine rollout, and expectations of Biden’s

next stimulus package. All seven indices we track reported gains (orange bars).

Source: FRC / Various

Silver prices dropped 4% after a 13.5% gain in the prior week. As detailed in our report last week, the price run-up was instigated by retail traders on Reddit. As silver has relatively fewer short positions (compared to GameStop/NYSE: GME and AMC

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Entertainment/NYSE: AMC), we were not expecting the Reddit army to trade silver for too long. Base metals moved up due to the above-mentioned factors relating to equity indices.

Inventory levels of copper and zinc declined on the LME, and increased on the SHFE (Shanghai), providing us mixed signals.





Valuations of gold and base metals producers were up 2% and 3%, respectively, in the past week.





Except Spain, almost all of the hardest hit nations continue to experience a decline in daily new cases of COVID.





Source: https://www.worldometers.info/coronavirus/

9.4% of the U.S. population has received vaccinations vs 7.6% at the same time last week. This compares to 17.7% in the U.K. (up from 13.7%). Israel and the UAE are at over 40%. The U.S. is currently administering over 1.2M doses per day, unchanged from the prior week. We estimate that 25% of the population will be vaccinated by June 2021, and 50% by October 2021.

We continue to expect an economic recovery in H2-2021. Recent economic data from the U.S. and China (shown below) are suggesting that both economies are in recovery-mode.

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U.S. Unemployment

U.S. Manufacturing Index

China GDP Growth

China Manufacturing Index

We are raising our silver price forecast from US$20 to US$22.5/oz based on our outlook for economic conditions. We are not making any changes to our other price forecasts:





In the following section, we review companies that announced key developments in the past week.

Mining / Exploration

Company Name:

Ticker Symbol

Current Share Price:

FRC Fair Value Estimate:

Date of PR:

Inca One Gold Corp

TSXV: IO $0.53 $1.45 Feb 2, 2021

PR Content In the quarter ended December 2020, the company generated US$10M in revenue, up 3% YoY. Gold production was 5,399 ounces, up 56% QoQ, but down 9% YoY. The processing rate was 134 tpd in December vs just 35 tpd during fiscal Q1 (May-June 2020).

FRC Opinion Positive – We were pleased with the results as the company had significantly scaled back activities (from March to July) due to the pandemic. Production has been ramping up since July. We are raising our revenue forecast for 2021 (year ended April 2021) from $28M to $31M from sales of 16.5 Koz gold (previously 15 Koz). We are also adjusting our EPS forecast from -$0.04 to -$0.03.

Company Name:

Ticker Symbol



Date of PR:

E3 Metals TSXV: ETMC $3.40 $4.20 Feb 2, 2021 PR Content Opened a direct lithium extraction development and testing facility

in Calgary.

FRC Opinion Positive – As a result of the recent advancements, we are lowering the discount rate of our DCF model from 15% to 12.5%, which resulted in an increase in valuation from $2.53 to $4.20 per share. Construction of a pilot plant is expected to commence this year.

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Company Name:

Ticker Symbol



Date of PR:

Noram Ventures Inc.

TSXV: NRM $0.90 $1.27 Feb 2, 2021

PR Content Additional results from its ongoing drill program showed 1,121 ppm lithium over 120 ft, from one of the six completed holes

FRC Opinion Positive - The grade is in line with the existing resource estimate. Noram is pursuing a 12-hole program. The current program is targeting mineralization to a depth of up to 500 ft. The existing resource on the project only accounts for mineralization to a depth of 100 m.

Company Name:

Ticker Symbol



Date of PR:

Eskay Mining Corp.

TSXV: LMR $2.95 N/A Feb 1, 2021

PR Content Entered into a share-swap agreement with Sprott to acquire 24M shares of Garibaldi Resources Corp. (TSXV: GGI) for $11M, by issuing equivalent shares and warrants of Eskay.

FRC Opinion Neutral – As GGI holds properties close to Eskay’s assets in B.C., we believe this transaction might be an indication that Eskay is likely to have a go at GGI. GGI’s market is $68M vs Eskay’s $469M. GGI’s shares are down 27% YoY, which is probably what prompted Eskay to make such a move. We also note that the share-swap deal itself is not that favorable for Eskay as it had to issue free warrants to Sprott.

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Company Name:

Ticker Symbol



Date of PR:

Wealth Minerals Ltd

TSXV: WML $0.20 N/A Feb 3, 2021

PR Content Closed a non-brokered private placement at $0.10 per unit for gross proceeds of $1.6M. World Copper (TSXV: WCU) completed its previously announced transaction, and shares started trading last month. WML owns 18.9% of WCU’s shares.

FRC Opinion Positive – We expect upside on WML’s investment in WCU. WCU’s properties in Chile hold 1.5Blbs indicated, and 2.4Blbs inferred resources. WCU is currently trading at just $0.007 per lb vs the comparables average of $0.024.

Company Name:

Ticker Symbol



Date of PR:

Panoro Minerals Ltd.

TSXV: PML $0.17 $0.77 Feb 1, 2021 Feb 8, 2021

PR Content Mapping and geochemistry at its Humamantata project in Peru identified new mineralization over a 2.5 km strike. Results of a geophysical survey are pending. Panoro expects to commence drilling (2,400 m over two targets located approximately 2.5 km apart) shortly upon receipt of permits.

FRC Opinion Positive - Exploration at Humamantata is fully funded by partner, Japan Oil, Gas and Metals National Corporation ("JOGMEC"). JOGMEC is funding US$8M to earn a 60% interest in the project. Humamantata is one of PML’s nine projects in southern Peru. Its flagship assets have a combined AT-NPV at 7.5% of US$989M, as per Preliminary Economic Assessments. Panoro’s market cap is just $40M. Wheaton Precious Metals (TSX: WPM) has committed to providing US$140M in financing for PML’s largest project, Cotabambas.

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Company Name:

Ticker Symbol



Date of PR:

Giga Metals Corporation

TSXV: GIGA $0.68 $1.01 Feb 1, 2021 Feb 3, 2021

PR Content Acquired exploration permits (40,722 ha) in northeast Brazil. The package includes four properties along a 80 km strike in an area known to hold Kupferschiefer-style sediment hosted copper mineralization.

FRC Opinion Positive - Sediment-hosted deposits have potential to hold large deposits, with high copper grades. Kupferschiefer is Europe’s largest copper producer, and the world’s largest silver producer. GIGA is planning preliminary exploration. We consider this to be a good move as it offers diversification across both commodity and region. A recent PEA on the flagship Turnagain nickel-cobalt project in B.C. had confirmed that the project can produce nickel concentrate for electric vehicles.

Company Name:

Ticker Symbol



Date of PR:

GR Silver Mining Ltd.

TSXV: GRSL $0.76 $0.98 Feb 1, 2021 Feb 8, 2021

PR Content Drill results from the Plomosas silver project in Sinaloa, Mexico continue to return encouraging values: ➢ 8.6 m @ 6.50g/t Au, 79 g/t Ag, 0.7 %

Pb, 5.8 % Zn (928 g/t AgEq 1) ➢ 5.4 m @ 9.06 g/t Au, 76 g/t Ag, 1.5 %

Pb, 4.6 % Zn (1,181 g/t AgEq) ➢ 61.1 m @ 0.4 g/t Au, 30 g/t Ag, 0.9 %

Pb, 1.1 % Zn and 0.2 % Cu (144 g/t AgEq)

FRC Opinion Positive - These results are encouraging for Plomosas' upcoming maiden resource estimate. Note that our fair value estimate is solely based on GRSL’s San Marcial silver project, which has an indicated resource of 36 Moz (147 gpt AgEq), and an inferred resource of 11 Moz (108 gpt AgEq).

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Company Name:

Ticker Symbol



Date of PR:

Lomiko Metals Inc.

TSXV: LMR $0.14 $0.21 Feb 1, 2021

PR Content Increased ownership of the La Loutre flake graphite project in Quebec, from 80% to 100%, for $1.13M.

FRC Opinion Positive – We were expecting this increase, and have been valuing LMR based on 100% ownership. The company recently retained SGS Canada to conduct metallurgical tests, and is planning a PEA. The share prices of graphite juniors have been trending up due to an increase in graphite prices, as well as positive investor sentiment on EV metals stocks. We are raising our fair value estimate on LMR from $0.12 to $0.21 per share, as the comparables average enterprise value has moved up from $8 to $26/t since our previous report.

Company Name:

Ticker Symbol



Date of PR:

Falcon Gold Corp

TSXV: FG $0.10 $0.29 Feb 2, 2021 Feb 4, 2021

PR Content Completes 1,890 m of drilling at the Central Canada gold mine project in Ontario. In 2020, FG completed 17 holes totalling 2,943 m. The company also entered into an agreement to purchase a large/3,955 ha prospective gold property. in central B.C. for $15k in cash, 200k shares, and 200k warrants. The claims, named Gaspard, are considered to be an extension of the Spences Bridge Gold belt.

FRC Opinion Positive – Initial results of the drill program returned broad zones of mineralization. Mineralization has been traced from surface to a depth of over 161 m. Central Canada is a historic producer, and is just 20 km east of Agnico Eagle’s (NYSE: AEM) Hammond Reef gold project. In addition to Central Canada, the company has a number of gold and polymetallic projects, including the recently announced Gaspard claims.

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Technology and Special Situations

Company Name:

Ticker Symbol



Date of PR:

Kontrol Technologies Corp.

CSE: KNR $5.52 $6.74 Feb 4, 2021

PR Content Announced that the Ontario government is providing $2M to the company to help commercialize and accelerate the production of BioCloud. The company announced that it plans to increase production capacity to 20,000 units per month. $1.2M of the funds are to be provided immediately, the rest to follow upon completion of certain milestones by March 30, 2021.

FRC Opinion Positive – We are pleased to see BioCloud getting strong support from the government, which indicates the strong possibility of potential large-scale use of the device in public service areas in Ontario. We are estimating revenues of $12M in 2020, and $29M in 2021.

Company Name:

Ticker Symbol



Date of PR:

Kidoz Inc. TSXV: KIDZ $0.50 $1.08 Feb 1, 2020

PR Content Kidoz’s network increased from 100M to 300M users in 2020. The company also reported that it had over 1B paid impressions, up 40% YoY.

FRC Opinion Positive – We are expecting record Q4 results, which are likely to be published next month. We also expect growth to continue in 2021, as digital ad spending worldwide is expected to increase 17% in 2021 (Source: eMarketer). Our revenue forecasts for Kidoz in 2020 and 2021 are $6M and $12M respectively. Despite this positive announcement, Kidoz shares are down 6% from our previous report in November 2020. We expect Q4 financials to be a catalyst for the share price.

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Company Name:

Ticker Symbol



Date of PR:

Elys Game Technology, Corp.

NASDAQ: ELYS

US$5.95 US$6.78 Jan 28, 2021

PR Content Announced that its unaudited net gaming revenue increased 26% to US$13.1 million in Q4-2020, compared to US$10.4 million Q4-2019. Additionally, web-based gross gaming revenue increased by approximately 69% in Q4 2020 YoY.

FRC Opinion Positive – We were pleased to see ELYS meet our revenue projection for the year of $37M. Our forecast for 2021 is US$46M (unchanged). Currently, 100% of the revenue comes from its Italian operations. We expect the company will be able to commence its U.S. operations in Q1-2021 (currently awaiting its first sports betting license).

Company Name:

Ticker Symbol



Date of PR:

Banxa Holdings Inc.

TSXV: BNXA $2.60 N/A Feb 2, 2021

PR Content Announced record Total Transaction Value (TTV) for January 2021 of $53.7M, up 1,000% YoY.

FRC Opinion Positive – We are pleased to see the company benefitting from the recent surge in cryptocurrency trading. Transaction volume of cryptocurrencies directly impacts BNXA’s revenue. We intend to publish our initiating report this month.

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Cannabis

Company Name:

Ticker Symbol



Date of PR:

Delta 9 Cannabis Inc.

TSX: DN $0.55 $1.24 Feb 4 & 5, 2021

PR Content Announced that it has completed a service agreement with another client with a cannabis micro cultivation license. DN has sold over 250 grow pods to business clients in Canada. Management also announced its plans to open its tenth retail store. This new store will be in Manitoba, making it the company’s seventh in the province. The company also stated that it plans to have 20 stores by the end of 2021.

FRC Opinion Positive – We are pleased to see DN continuing to establish its B2B Services market, which speaks to the industry’s interest in its grow pods for cultivation. We also find the announcement of opening another retail store to be encouraging. We are conservatively projecting 12 stores by the end of 2021. B2B revenue accounts for 23%, and retail store revenue accounts for 58%, of our estimated $55M revenue in 2020. We are estimating $71M in revenue in 2021 (unchanged).

Company Name:

Ticker Symbol



Date of PR:

Grown Rogue International Inc.

CSE: GRIN $0.25 $0.31 Feb 5 & 8, 2021

PR Content Announced the closing of a US$1M financing through equity and debt. Management stated that they plan to use the funds for expanding operations in Michigan. The company also added to its indoor growing capacity in Oregon through a service agreement with Acreage Holdings (CSE: ACRG).

FRC Opinion Positive – We are pleased to see the company able to raise funding for expansion in Michigan (acquisition expected to be completed in Q2). We believe the added capacity is timely, considering the recent surge in cannabis sales in Oregon. In light of the recent developments, we are lowering our DCF model’s discount rate (from 15% to 14%), and revising the fair value estimate from $0.29 to $0.31. Our revenue outlook remains unchanged at $4M in 2020, and $10M in 2021.

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Company Name:

Ticker Symbol



Date of PR:

Captiva Verde Land Corporation

CSE: PWR $0.36 $0.95 Feb 7, 2021

PR Content Announced that it is raising $2.7M through a private placement, with units priced at $0.27 per share, with a warrant at $0.75 per share. Funds will be used for working capital.

FRC Opinion Positive – We are maintaining our outlook, and 2021 revenue estimate at $22.95M.

Company Name:

Ticker Symbol



Date of PR:

Kaya Holdings Inc.

OTCQB: KAYS

$0.52 N/A Feb 1, 2021

PR Content Announced that its Greek joint venture has engaged Dutch-based Orange Ridge Capital to raise up to $45 million for its planned 15-acre cannabis cultivation and processing facility in Thebes, Greece. According to management, the facility has received an installation license from the Greek Government, and is ready to commence construction. The company has contracted a local company to develop up to 270,000 sq. ft. of greenhouses, and 80,000 sq. ft. of extraction and processing facilities.

FRC Opinion Neutral – We are pleased to see the company moving along with its Europe expansion plans. Completion of the proposed financing will be critical.

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Weekly Cannabis Commentary

Cannabis Industry Performance February 5, 2021

Company YTD 1-Week 1-Year

Aphria Inc. 139% 34% 246%

Aurora Cannabis Inc. 52% 13% -52%

Canopy Growth Corp. 73% 8% 90%

Cronos Group Inc. 74% 16% 53%

Tilray Inc. 205% 35% 46%

HEXO Corp. 112% 22% 41%

Organigram Holdings Inc. 75% 26% -12%

The Supreme Cannabis Co., Inc. 82% 71% -39%

AVERAGE 101% 28% 47%

MIN 52% 8% -52%

MAX 205% 71% 246%


HMMJ 67% 21% 54%

MCAN 61% 21% 73%

XCAN 69% 20% 53% Source: TMX Money, FRC

Over the past week, the Horizons Marijuana Life Sciences ETF (TSX: HMMJ / “HMMJ”), the Standard & Poor’s/MX International Cannabis Index (“MCAN”), and the Standard & Poor’s/TSX Cannabis Index (“XCAN”) generated returns of 21%, 21%, and 20%, respectively. Aphria (“APHA”) and Tilray (“TLRY”) both had notable returns, as they announced their plans to expand in Europe (Germany, Portugal, and Spain). We also believe that rising optimism for federal legalization in the U.S. was a factor for the price run-up. Valuation of Select Canadian LPs The following chart shows the average Enterprise Value to Revenue (“EV/R”) ratio of the Canadian cannabis companies we track.





Average EV/R (October 2019 – February 2021)

January 29, 2021 February 05, 2021

Company Ticker TEV/Revenue TEV/EBITDA TEV/Revenue TEV/EBITDA

Aphria Inc. TSX: APHA 8.9 83.2 11.9 111.4

Aurora Cannabis Inc. TSX: ACB 9.7 NM 10.9 NM

Canopy Growth Corp. TSX: WEED 38.2 NM 40.9 NM

Cronos Group Inc. TSX: CRON 92.0 NM 112.3 NM

Tilray Inc. NASDAQ: TLRY 15.1 NM 20.7 NM

HEXO Corp. NYSE: HEXO 9.8 NM 12.1 NM

Organigram Holdings Inc. TSX: OGI 6.5 NM 8.4 NM

The Supreme Cannabis Co., Inc. TSX: FIRE 3.7 NM 5.3 NM

AVERAGE 23.0 NM 27.8 NM

MEDIAN 9.7 NM 12.0 NM

MINIMUM 3.7 NM 5.3 NM

MAXIMUM 92.0 NM 112.3 NM Source: S&P Capital IQ, FRC

The average EV/R, as of February 5, 2021, was 27.8x – a WoW increase from 23.0x. The average EV/R, from October 7, 2019, to February 5, 2021, was 12.7x.





Canadian Retail Cannabis Pricing Province (As of 2021/2/8) Average Price per Gram Average Price per Gram THC Average Price per Gram CBD # of Products Min. Price Max. Price

B.C. 9.68$ 9.78$ 8.42$ 173 3.93$ 15.71$

Ontario 9.68$ 9.88$ 8.08$ 319 4.00$ 23.98$

Quebec 9.39$ 9.38$ 9.55$ 226 4.85$ 21.68$

Alberta 11.40$ 11.39$ 11.39$ 335 3.93$ 22.00$

N.B. 9.91$ 10.16$ 7.58$ 178 3.57$ 16.28$

P.E.I. 9.75$ 9.77$ 9.49$ 165 2.20$ 23.30$

Newfoundland 10.12$ 10.08$ 10.36$ 155 4.46$ 15.40$

Yukon 14.98$ 15.07$ 13.95$ 12 10.49$ 16.15$

N.S. 10.37$ 10.42$ 9.82$ 180 5.36$ 42.85$

Nunavut 12.91$ 13.04$ 12.41$ 33 5.19$ 17.91$

Northwest Territories 14.68$ 14.68$ 2 12.08$ 17.28$

Manitoba 11.42$ 11.36$ 11.62$ 326 4.90$ 20.43$

Saskatchewan 12.47$ 12.49$ 12.08$ 191 4.95 38.50

CANADA 11.29$ 11.35$ 10.40$ Province (As of 2021/2/1) Average Price per Gram Average Price per Gram THC Average Price per Gram CBD # of Products Min. Price Max. Price

B.C. 9.60$ 9.70$ 8.42$ 162 3.93$ 15.71$

Ontario 9.70$ 9.90$ 8.08$ 316 4.00$ 23.98$

Quebec 9.29$ 9.27$ 9.55$ 221 4.85$ 15.06$

Alberta 11.44$ 11.44$ 11.39$ 334 3.93$ 22.00$

N.B. 9.89$ 10.14$ 7.58$ 173 3.57$ 16.28$

P.E.I. 9.75$ 9.77$ 9.49$ 165 2.20$ 23.30$

Newfoundland 10.12$ 10.08$ 10.36$ 155 4.46$ 15.40$

Yukon 14.98$ 15.07$ 13.95$ 12 10.49$ 16.15$

N.S. 10.37$ 10.42$ 9.82$ 180 5.36$ 42.85$

Nunavut 12.91$ 13.04$ 12.41$ 33 5.19$ 17.91$

Northwest Territories 14.68$ 14.68$ 2 12.08$ 17.28$

Manitoba 11.41$ 11.36$ 11.62$ 322 4.90$ 20.43$

Saskatchewan 12.56$ 12.59$ 12.08$ 186 4.95 38.50

CANADA 11.28$ 11.34$ 10.40$

Source: Online Provincial Cannabis Stores, FRC

The average retail price per gram increased week-over-week from $11.28 to $11.29. The below chart shows Canadian retail dried cannabis flower pricing since we initiated price coverage.

Canadian Retail Dried Cannabis Flower Pricing

Source: Online Provincial Cannabis Stores, FRC





Canadian Retail Cannabis Stores As of February 8, 2021, there are 1,547 retail cannabis stores, a week-over-week increase of 25 stores across Canada, including 17 in ON, five in AB, and three in B.C. As we noted before, we continue to see Ontario’s store growth significantly outpace other provinces due to the recent mandate of the Alcohol and Gaming Commission of Ontario (AGCO) to increase retail store authorizations.

Nationwide Store Count

Jan-18-2021 Jan-25-2021 Feb-1-2021 Feb-8-2021

Geographic Region Store Count Store Count Store Count Store Count Population Population / Store

Alberta 553 556 561 566 4,428,247 7,824

B.C. 304 306 306 309 5,120,184 16,570

Manitoba 56 56 56 56 1,379,121 24,627

N.B. 20 20 20 20 780,890 39,045

N.S. 21 21 21 21 978,274 46,584

Newfoundland 30 30 30 30 520,437 17,348

Northwest Territories 5 5 5 5 44,982 8,996

Nunavut na na na na 39,486 N/A

Ontario 354 389 409 426 14,745,040 34,613

P.E.I. 4 4 4 4 158,717 39,679

Quebec 57 57 60 60 8,552,362 142,539

Saskatchewan 45 45 45 45 1,181,987 26,266

Yukon 5 5 5 5 41,293 8,259

CANADA 1,454 1,494 1,522 1,547 37,971,020 24,545 Source: Provincial Websites, FRC





Weekly Psychedelic Commentary

Psychedelic Industry Performance February 5, 2021

Company YTD 1-Week 1-Year

COMPASS Pathways plc -8% 4% N/A

Numinus Wellness Inc. 32% 13% N/A

Mind Medicine Inc. 18% 19% N/A

Seelos Therapeutics Inc. 115% 52% 246%

AVERAGE 39% 22% 246%

MIN -8% 4% 246%

MAX 115% 52% 246%


PSYK 3% 12% N/A*

*Launched on January 27, 2021 Source: TMX Money, FRC

We have started tracking the psychedelic industry’s performance, following launch of the Horizons Psychedelic Stock Index ETF (“PSYK”) on January 27, 2021. Over the past week, the PSYK generated a return of 12%. The pandemic has created a huge spike in mental health conditions. In the U.S., the Centers for Disease Control reported that 11% of American adults considered suicide in the summer of 2020, with a staggering 40% reportedly struggling with mental health or substance abuse. Companies are creating psychedelic drugs to address these mental health issues. Currently, there are ongoing clinical trials of drugs including LSD and psilocybin (psychedelic component), to treat anxiety, depression, and opioid addiction. Data Bridge Market Research reported that the psychedelic drugs market in North America will grow at 15.8% from 2020 to 2027, and reach US$7B.





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Analysts' Ideas of the Week · 2/9/2021 · seem to still be trading on the information of Jeff...

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