- Mindset Pharma and Novamind have been fast-tracked for inclusion in the world’s first psychedelic stock ETF.
- A company is eligible for fast-track entry into the index which underlies the ETF if it has a float market capitalization in excess of CAD $50 million.
- A total of 19 companies are now included in the ETF with a quarterly rebalance of the portfolio coming up at the end of March.
Two emerging Canadian life sciences companies have been fast-tracked for inclusion in Horizons ETFs Management’s psychedelic stock ETF (exchange-traded fund). It was announced on February 19 that Mindset Pharma and Novamind had been added to the North American Psychedelics Index which underlies the ETF A total of 19 North American life sciences companies currently make up the ETF, which began trading on Canada’s NEO exchange on January 27 under the ticker symbol PSYK.
In a statement, Horizons said the index has a “fast-entry” rule which allows it to add new stocks to the portfolio shortly after they become publicly traded assuming they qualify for inclusion. “In order for a stock to be eligible for the fast-entry inclusion, it must have a float market capitalization in excess of CAD $50 million,” the company said. The index is also rebalanced every calendar quarter and all eligible stocks for inclusion will be generally re-weighted by their respective float market capitalization.
Companies Welcome Inclusion in PSYK ETF
Mindset Pharma CEO James Lanthier said as investor interest in psychedelic drugs has been increasing rapidly, the company was pleased to have been included in the index that underlies the ETF. “This is a significant recognition for Mindset as it reflects our position as a progressive and highly innovative company in the psychedelic space,” Lanthier said in a statement on February 19. “We believe our addition into the index will lead to increased exposure and improved liquidity for the company as we continue to develop our novel next-generation psychedelic drug candidates as well as our patent-pending scalable, cost-effective psilocybin synthesis process.”
In a statement on February 22, Novamind also welcomed its inclusion in the ETF, a milestone achieved less than two months after the company went public on January 5, 2021. Novamind director and CEO Yaron Conforti said: “Novamind’s inclusion in the first psychedelic ETF is a result of our company’s leadership in mental healthcare and clinical research for psychedelic medicine. We’re excited to increase our profile with retail and institutional investors and to share our successful operating model for psychedelic medicine.”
Emily Jarvie is a writer and content creator whose work has appeared in North American, Australian, and European publications. Before moving to Canada, she was a political journalist for Australian Community Media in her home state of Tasmania.