Psyched: Atai's $214M IPO, MindMed CEO Resigns, Field Trip Applies To Nasdaq, Cybin And Novamind Target Frontline Health Workers

Atai Launches $214 Million Nasdaq IPO Offering

Psychedelics biotech platform Atai life Sciences has announced an initial public offering of approximately 14 million of its common shares, ahead of the company’s expected Nasdaq listing.

Shares are proposed to go at a price of between $13 and $15, targeting a valuation of about $2.3 billion, according to Reuters.

The raise could bring as much as $214.3 million to the company, which will go public under the symbol ‘ATAI,’ joining an exclusive group of psychedelics companies listing on the Nasdaq.

J.R. Rahn Steps Down As MindMed CEO

MindMed MNMD, CEO J.R. Rahn announced he’ll be stepping down from his leadership role, effective immediately.

In an exclusive interview, Rahn told Benzinga that the MindMed of today requires leaders better equipped to pursue late-stage clinical trials and solve regulatory hurdles.

“It’s about removing oneself from necessarily what your ego tells you to do,” he said.

“The biggest thing I can do for MindMed, right now, is to realize that it needs a different type of leader, for the long haul. It is really for the best of the mission that is so deeply important to me.”

Going forward, chief development officer Robert Barrow will assume the position of interim CEO. MindMed will begin searching for a new CEO, in which Barrow will be a candidate. Rahn will also step down from the board of directors but will remain a strategic advisor during the transition.

Kevin O’Leary - an early backer of MindMed, "Shark Tank" star, and co-founder of O’Shares ETFs- said MindMed is now entering later stage clinical trials and that takes a new type of leadership. 

“I believe JR made the right decision to put his ego aside and passed the baton to a leader that is best for the company for the stage it's now at, as well as the many suffering from mental health and addiction,” O'Leary said.

Connecticut To Study Therapeutic Potential of Psilocybin 

A first wave of psychedelics legislation is starting to spread across the country. Days after Texas approved its first psychedelics bill, Connecticut is following suit.

Connecticut Governor Ned Lamont has signed a bill that requires the Department of Mental Health and Addiction Services to put together a working group to study the health benefits of psilocybin, Marijuana Moment reported.

The group will have until January 1, 2022 to make a recommendation to the legislature.

Field Trip Health Applies To Join Nasdaq

After uplisting its stock from the Canadian Stock Exchange to the Toronto Stock Exchange, Field Trip Health Ltd. FTRP FTRPF is ready to join Wall Street.

On Tuesday, the company announced it had issued an application to list its stock on the Nasdaq.

“Psychedelics stand poised to disrupt modern psychiatry, and the Nasdaq is where world class companies whose ambition is disruption list to reach a global audience of investors,” said Ronan Levy, Field Trip’s executive chairman. “By applying to list on the Nasdaq, we are declaring to the world that Field Trip is such a world-class company.”

The listing is still subject to final approval. If successful, the Toronto-based company will maintain its TSX stock and uplist its OTC stock to the Nasdaq.

Cybin And Novamind Target Frontline Health Workers With Covid-related Distress

Cybin Inc. CYBN CLXPF is co-sponsoring a new clinical trial that will test the benefits of psilocybin treatment in health workers experiencing COVID-related distress.

The randomized, placebo-controlled trial aims to treat symptoms of depression, anxiety, burnout and PTSD among frontline doctors, nurses and healthcare professionals.

Cybin is sponsoring the trial in a partnership with the University of Washington in Seattle. Researchers will apply psychedelics-assisted psychotherapy methods that use psilocybin in conjunction with psychological therapy.

Novamind Inc. NM NVMDF has announced a psychedelic therapy protocol titled “frontline ketamine-assisted psychotherapy,” in partnership with the Wholeness Center.

The protocol is meant to address “the widespread stress and trauma faced by frontline healthcare workers battling the Covid-19 pandemic.” It will initially be applied to 40 healthcare workers in Colorado and Utah, beginning in late June.

Red Light Holland Buys Virtual Reality Company And Majority Stake In Grow-At-Home Mushroom Company

Red Light Holland Corp. TRIP TRUFF closed two major acquisitions last week.

On Tuesday, the company finalized the purchase of Radix Motion Inc., a virtual reality company looking to empower the psychedelics sector with immersive technology, for approximately $67,000 and 12 million shares (valued at around $3.1 million).

Radix’s flagship software is MEU, a virtual and augmented reality platform dubbed “the first immersive social platform that is based on 3d human movements.”

With this acquisition, Red Light Holland plans to leverage Radix’s technology to build bridges between the psychedelic experience and virtual reality.

On Thursday, Red Light Holland gained a majority stake in Happy Caps, a mushroom farm in Nova Scotia, which sells edible non-psychedelic mushrooms as well as “grow your own mushroom kits.”

Happy Caps currently focuses on growing and selling functional mushroom products like Shiitake, Lion’s Mane and Oyster mushrooms.

Red Light Holland acquired 80% of Happy Caps for CA$450,000 ($317,000), divided between CA$50,000 in cash and 1.2 million common shares.

The company stated plans to expand the Happy Caps platform into Europe via a wholly-owned distributor. The acquisition also serves as a forward-looking asset that could produce and commercialize psychedelic mushrooms, as well as “grow-at-home” kits, if and when regulation allows.