How to Invest in Psychedelics
Whitefish, Montana--(Newsfile Corp. - April 29, 2021) - CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the leading media network dedicated to the global legal cannabis, CBD and psychedelics industries, today announced an article covering The Delic Holdings Inc. (CSE: DELC) (OTCQB: DELCF).
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The psychedelics industry is following in the same projectile footsteps of the cannabis industry and could be on its way to becoming a multi-billion dollar industry with the potential to transform mental health treatments. Researchers from Johns Hopkins and other leading institutions have embraced advancements in psychedelic research which has spawned a growing list of science-based biotech companies focused on further clinical development.
Let's take a look at how investors can add exposure to the psychedelics sector and add into their portfolio without having to purchase multiple companies and actively manage their portfolio.
Invest in a Psychedelics ETF
Exchange-traded funds, or ETFs, are one of the easiest ways for investors to build exposure to different corners of the market into their portfolios. They provide instant diversification to a particular theme with exposure to many different stocks in a single security. At the same time, passive ETFs are typically less expensive to own than actively managed mutual funds.
The Horizons Psychedelic Stock Index ETF became the first exchange-traded fund in Canada to focus on psychedelics with its launch in January. With exposure to 23 publicly traded psychedelics companies, a single share of the ETF provides broad exposure to the entire psychedelics industry with a modest 0.85% expense ratio.
The ETF's largest holdings include Seelos Therapeutics Inc. at 16.56%, Mind Medicine Inc. at 8.86% and Compass Pathways plc at 8.5%. Aside from the popular psychedelics pure plays, the fund holds large and diversified companies like Johnson & Johnson Inc. and AbbVie Inc.
Many of these companies have been strong performers in recent weeks and months. For example, MindMed shares have more than doubled from less than $3.00 in mid-April to around $6.00 in recent sessions.
The downside of ETFs is that they involve a management fee that cuts into long-term returns. In addition, the composition of most ETF portfolios is based on a passive indexing algorithm that may not reflect an ideal composition for an individual investor - it may be overweight or underweight in certain areas that an investor wants exposure.
Invest in Diversified Companies
Many companies provide ETF-like exposure to a market while adding a dose of active management. The most popular example is Warren Buffett's Berkshire Hathaway Inc., which owns everything from insurance companies to rail transportation companies. The advantage of these companies is the management team's acumen.
Most psychedelic companies are focused on a particular area, such as specific clinical trials for anxiety, depression and PTSD, but some companies have embraced this kind of diversification.
The company's management team comes from the upper echelons of High Times, the iconic cannabis media brand, while its backers include names like Paul Rosen, who was a co-founder of PharmaCan Capital Corp. and served as its first President and CEO. With the right team in place, the company has begun to build its sprawling business.
After getting a start with a media presence, the company acquired Ketamine Infusion Centers, a business with 2 clinics and $1.5 million in revenue over the past three years. The company then acquired Complex Biotech Diversity Ventures (CBDV), a profitable business that provides both research services and a growing IP portfolio focusing on psilocybin and cannabis. Closing of the transactions are subject to customary conditions and are expected to close in the second quarter of 2021.
Investors have many different options when building exposure to psychedelics within their portfolio. Exchange-traded funds (ETFs) provide an easy way to access a wide array of exposure for your portfolio holdings of companies whereas companies like Delic Corp. (CSE: DELC) (OTCQB: DELCF) are focused on building their own diverse ecosystem under one roof with an exceptional management team.
About CFN Enterprises Inc.
CFN Enterprises Inc. (OTCQB: CNFN) is a digital media and ecommerce company focused on advancing businesses and brands in highly regulated emerging industries across the globe. CFN connects investors with new market opportunities while helping consumers find innovative products that enhance their lives. Learn more at www.cfnenterprisesinc.com.
CFN Enterprises Inc. Media Contact:
CFN Enterprises Inc.
+001 (833) 420-CNFN
Use of Forward-Looking Statements
This press release may contain forward-looking statements from CFN Enterprises Inc. within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 and federal securities laws. For example, when CFN Enterprises Inc. describes The Delic Holdings' business, and uses other statements containing the words "believes," "anticipates," "plans," "expects," "will" and similar expressions, CFN Enterprises Inc. is using forward-looking statements. These forward-looking statements are based on the current expectations of the management of CFN Enterprises Inc. only, and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. The following factors, among others, could cause actual results to differ materially from those described in the forward-looking statements: regulatory and licensing risks; changes in general economic, business and political conditions, including changes in the financial markets; the regulatory landscape and enforcement related to cannabis, including political risks and risks relating to regulatory change; changes in applicable laws; compliance with extensive government regulation; public opinion and perception of the cannabis industry; we may be unable to retain or attract key employees whose knowledge is essential to the development of our products and services; or, loss of market share and pressure on pricing resulting from competition, which could cause the actual results or performance of CFN Enterprises Inc. to differ materially from those contemplated in such forward-looking statements. Except as otherwise required by law, CFN Enterprises Inc. undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. For a more detailed description of the risk and uncertainties affecting CFN Enterprises Inc., reference is made to CFN Enterprises Inc.'s reports filed from time to time with the Securities and Exchange Commission.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/82245.