The psychedelics hype is real and the promising industry is currently in its infant stage. It is so promising that the UK government also wants a piece of the pie through financial investments as companies in the segment start going public.
The UK government’s investment firm called Angel investor already owns a 5.5% stake in Small Pharma, a company that is exploring psychedelic-based therapies. The company recently revealed plans to go public on the Toronto Stock Exchange. The public listing targets roughly C$20 million/$ 15.6 million from the IPO and it plans to use the funds to fund its dimethyltryptamine/DMT research for treating depression.
Angel CoFund receives its funding from the UK government through a £100 million ($134 million) issued through the country’s department of Department for Business, Energy and Industrial Strategy. The department earns interest from CoFund’s investment returns. The national investor expects to earn £2 million ($2.69 million) in returns from the Small Pharma investment once the stock exchange listing takes place. The investment should grow even more as the company achieves various development milestones and potentially more if it rolls out products into the market.
Will the government change its stance on legal status?
Psychedelics were outlawed and banned decades ago, meaning that they are classified under the same categories as illegal drugs like cocaine. However, the discovery of medicinal properties in psychedelics might encourage the government to make some regulatory adjustments in favor of psychedelics especially since it is an industry that is benefiting the government financially.
Small Pharma researchers believe that psychedelics such as DMT have huge potential as a treatment for mental illnesses. They believe that DMT can potentially eliminate the mental factors that cause depression. It also means that the company will be taking an active approach instead of the common reactive approach to treating depression. Previous studies evaluated the Ayahuasca plant which contains DMT, and its ability to ease depression symptoms.
Numerous other companies are also exploring mental health treatment through psychedelics. For example, Cybin Inc. (NEO: CYBN) has been investigating the benefits of psilocybin, a psychedelic found in magic/hallucinogenic mushrooms. The UK government’s involvement in the budding psychedelics industry will undoubtedly encourage more investors to follow the same route.