MagicMed Raises $1.6M to Launch Psychedelic Drug Discovery Platform
September 2nd, 2020
Psychedelics, Top Story
MagicMed Industries Inc. raised roughly $1.6 million in an oversubscribed private placement to develop Psybrary™—a proprietary drug discovery platform for the psychedelics industry. Using its deep expertise in molecular derivatives, the company aims to develop a library of derivative variant molecules that partners can develop into therapeutics.
Let’s take a closer look at why the company’s unique business model has drawn so many investors and where to learn more as it moves closer to going public.
Unique Business Model
MagicMed Industries aims to develop a library of new derivative variant molecules based on natural psychedelic molecules, such as psilocybin. With deep expertise in the field, the company’s team will leverage proprietary trade secrets developed in-house from decades of research and development in the field of natural product biochemistry.
The company plans to seek out commercialization partners that will search, select and test derivatives from the Psybrary™ and use them as building blocks for their own product development based on the indications that they are targeting, such as anxiety, depression, addiction and post-traumatic stress disorder.
Once developed and approved, the company’s partners will sell the products into medical and consumer markets. The derivative nature of the molecules means that they can be patented (unlike natural molecules), creating both unique characteristics and a competitive barrier to entry. The company could also expand into nutraceuticals and other OTC markets.
The unique business model provides both high-margin revenue and diversification across partners and indications. By charging a royalty to license molecules, the company avoids the high cost of clinical trials and product development while retaining the blue-sky potential to generate large amounts of revenue if drugs reach a blockbuster stage.
Alternative to Cannabis
Many cannabis investors have been turning to psychedelics as an emerging frontier investment. While the cannabis industry has matured, psychedelics remain in the early stages of product development, which could open the door to potentially greater returns. Many psychedelics companies are going public, opening the door to retail investors.
In addition to earlier stage opportunities, many investors are also drawn to the therapeutic potential for psychedelics. Cannabis has become a largely recreational business with thin profit margins in many localities, whereas most people know someone that suffers from a mental illness that could benefit from psychedelic therapies.
These sentiments were one reason that MAPS was able to raise $30 million in donations to fund its research on MDMA for post-traumatic stress disorder and a key reason that MagicMed Industries was able to not only reach its goal of raising $1 million but oversubscribe the offering by another roughly $600,000 amid soaring interest.
MagicMed Industries offers investors a prudent approach to the market. Rather than focusing on a single clinical trial or a commoditized consumer product line, the company is building a platform (like Amazon or Google) that other companies can build off of to create value and earn a margin off the top of any sales in exchange for the service.
MagicMed Industries’ move to raise $1.6 million marks another step on its way to becoming a leading drug discovery platform and a publicly traded company. With plans to go public during the first half of next year, investors may want to take a closer look at the company and follow its developments over the coming months.
On Thursday, September 3, 2020, investors can tune into the Microdose Conference to learn more about MagicMed’s capital raise and what the funds will be put towards. Sign up now!
To learn more about MagicMed Industries, sign up to download the investor presentation and receive corporate updates.
The above article is sponsored content. CannabisFN.com and CFN Media, have been hired to create awareness. Please follow the link below to view our full disclosure outlining our compensation: http://www.cannabisfn.com/legal-disclaimer/
This article was published by CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the industry’s leading agency and digital financial media network dedicated to the burgeoning CBD and legal cannabis industries. Call +1 (833) 420-CNFN for more information.
Follow Us on Social Media
About CFN Media Group
CFN Enterprises Inc. (OTCQB: CNFN) owns and operates CFN Media Group, the premier agency and financial media network reaching executives, entrepreneurs and consumers worldwide. Through its proprietary content creation, video library, and distribution via www.CannabisFN.com, CFN has built an extensive database of cannabis interest, assisting many of the world’s largest cannabis firms and CBD brands to build awareness and thrive. For more information, please visit www.cfnenterprisesinc.com.
Disclaimer: Matters discussed on this website contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. CFN Media Group, which owns CannabisFN, is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. CFN Media Group, which owns CannabisFN, may from time-to-time have a position in the securities mentioned herein and will increase or decrease such positions without notice. The Information contains forward-looking statements, i.e. statements or discussions that constitute predictions, expectations, beliefs, plans, estimates, or projections as indicated by such words as "expects", "will", "anticipates", and "estimates"; therefore, you should proceed with extreme caution in relying upon such statements and conduct a full investigation of the Information and the Profiled Issuer as well as any such forward-looking statements. Any forward looking statements we make in the Information are limited to the time period in which they are made, and we do not undertake to update forward looking statements that may change at any time; The Information is presented only as a brief "snapshot" of the Profiled Issuer and should only be used, at most, and if at all, as a starting point for you to conduct a thorough investigation of the Profiled Issuer and its securities and to consult your financial, legal or other adviser(s) and avail yourself of the filings and information that may be accessed at www.sec.gov, www.pinksheets.com, www.otcmarkets.com or other electronic sources, including: (a) reviewing SEC periodic reports (Forms 10-Q and 10-K), reports of material events (Form 8-K), insider reports (Forms 3, 4, 5 and Schedule 13D); (b) reviewing Information and Disclosure Statements and unaudited financial reports filed with the Pink Sheets or www.otcmarkets.com; (c) obtaining and reviewing publicly available information contained in commonlyknown search engines such as Google; and (d) consulting investment guides at www.sec.gov and www.finra.com. You should always be cognizant that the Profiled Issuers may not be current in their reporting obligations with the SEC and OTCMarkets and/or have negative signs at www.otcmarkets.com (See section below titled "Risks Related to the Profiled Issuers, which provides additional information pertaining thereto). For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. CFN Media Group, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity-based compensation in the companies it writes about, or a combination of the two. For full disclosure, please visit: https://www.cannabisfn.com/legal-disclaimer/. A short time after we acquire the securities of the foregoing company, we may publish the (favorable) information about the issuer referenced above advising others, including you, to purchase; and while doing so, we may sell the securities we acquired. In addition, a third-party shareholder compensating us may sell his or her shares of the issuer while we are publishing favorable information about the issuer. Except for the historical information presented herein, matters discussed in this article contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. CFN Media Group, which owns CannabisFN, is not registered with any financial or securities regulatory authority, and does not provide nor claims to provide investment advice or recommendations to readers of this release. CFN Media Group, which owns CannabisFN, may from time to time have a position in the securities mentioned herein and will increase or decrease such positions without notice. For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. CFN Media Group, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity- based compensation in the companies it writes about, or a combination of the two. For full disclosure please visit: https://www.cannabisfn.com/legal-disclaimer/.