Transforming the Traditional Landscape of Mental Health, Addiction Treatment and Pain Management Treatment Across Multiple Verticals
This Levitee Labs profile is part of a paid investor education campaign.*
Shifting legal frameworks and regulatory changes have made psychedelic medicine one of the most promising solutions to mental health and addiction treatment in the modern age. Strong demand from therapists and patients for treatments involving psychedelic drugs like psilocybin has pushed the market to new heights, including a projected market size of over US$10.75 billion by 2027.
Globally, the market for functional mushrooms was US$5.8 billion in 2018 and could grow to a CAGR of 8.0 percent by 2024. Early-movers in the space can expect exceptional growth and economic success as the psychedelic space continues to gain traction as an increasingly positive remedy to limited responses to mental health, substance use and chronic pain crises around the world.
Levitee Labs (CSE:LVT) is an emerging leader in the integrative wellness space. The company will be the world’s first psychedelic company with significant revenue and cash flow by year end 2021. Levitee Labs revealed that its M&A team has been tremendously successful in structuring transactions that will define the future of the company. Its acquisition pipeline is deep with a focus on pain & addiction clinics, specialized pharmacies, regulated telehealth, therapeutic psychedelic compound accessibility, and novel nutraceuticals.
Levitee Labs has established a profitable platform of integrative wellness assets through internal development and a regimented acquisition strategy. It operates a robust portfolio of revenue streams, including platform acquisition verticals of addiction and pain clinics, pharmacies and supplement & nutraceutical brands. The company also operates its divisional Sporeo Supply, which offers the gold standard of picks & shovels for mushroom cultivation.
Levitee is pursuing an acquisition strategy focused on addiction clinics & pharmacies through Project Maverick, which could push its patient base to 35,000 visits yearly. About 70 percent of which would be conducted via telemedicine. The LTM revenue of this vertical is approximately C$7.5 million.
Additionally, Levitee’s nutraceutical rollup and strategy are focused on a significant acquisition pipeline with over $50 million in revenue, which includes Project Coconut. This acquisition already involved an executed LOI with an omni channel superfoods brand.
The company’s Project Outback seeks to acquire a late stage applicant for a Health Canada sanctioned Controlled Drugs and Substances Dealer’s License. This would allow Levitee Labs access to compounds such as psilocybin, MDMA, ketamine, LSD and DMT. The provisions surrounding the application would involve possession, production of base materials, delivery and import/export, which would widely expand the company’s mission of traditional mental health and addictions treatment disruption and overall integrative wellness verticals.
Levitee Labs anticipates C$15.4 million in revenue in 2021, with C$1.4 million in EBITDA. The projected revenue mix comes from 15 percent internally developed assets and 85 percent from acquisition targets. Its acquisition pipeline could see over C$500 million in revenue and C$100 million in EBITDA.
The next steps for Levitee Labs include a psychedelic blueprint, which outlines an increased integration of alternative medicines and psychedelic therapies across its wellness platforms as regulations and shifting legal frameworks develop. Additionally, the company’s R&D strategy is progressing sustainably, focusing on a rollout of alternative medicines to underserved patients.
The Levitee Labs management team comprises a diverse and complementary group of professionals across related fields in clinical research, public venture capital, M&A and operations. Together, they prime the company for exceptional growth potential, established key partnerships and positive financial valuations.
Levitee Labs’ Company Highlights
- Levitee Labs is a multidisciplinary company dedicated to transforming the traditional approach to healthcare through its profitable portfolio of complementary integrative wellness assets.
- The company’s major assets include mental health clinic and pharmacy acquisition, picks & shovels for mushroom cultivation and superfoods & nutraceutical brand acquisition
- The company’s nutraceutical and superfoods acquisition pipeline could bring over $50 million in revenue through Project Coconut and others
- Its Sporeo Supply mushroom cultivation asset offers exceptional internally developed picks & shovels and involves a major distribution partnership with My Green Planet.
- Its Superfoods and Nutraceuticals vertical involves executed LOIs with brands like Project Coconut, Project Buddha and MONKE Nutraceuticals.
- Levitee Labs has a market cap of approximately C$37.5 million, an enterprise value of C$26 million, and a tight capital structure.
- The company’s management team is a strategically diverse and robust group of professionals with experience across an array of related fields including psychedelics, clinical research and strategic alliance.
Levitee Labs’ Key Projects
Project Maverick – Clinic and Pharmacy Acquisition Strategy
Levitee’s acquisition strategy focused on addiction clinics, pharmacies and pain management clinics serves as a platform for addressing the burden of inefficiencies prevalent within current clinical treatments, particularly those available to underserved patient populations. The project involves six clinics, three specialized pharmacies and a telemedicine platform, which the company intends to add additional services to treat underserved patients through innovative digital drug delivery avenues as the market expands.
The Maverick project has an estimated enterprise value hovering around C$5.9 million with a C$7.5 million LTM revenue and C$1.1 million EBITDA. The roll-up strategy would also include research into psychedelic medicine and trials of novel psychedelic compounds.
Nutraceutical Acquisition Rollup
Levitee’s division of nutraceutical strategy focuses on acquiring brands that are established at brick & mortar but lack an e-commerce presence. These brands offer the company a first-mover advantage with early-stage positioning in growth, high search volume and limited established competitors. These companies also have proprietary products with exceptional economic volume but high barriers to entry. Levitee’s main brands include MONKE Nutraceuticals and executed LOI involving Project Buddha and Project Coconut.
- MONKE Nutraceuticals is an internally developed, premium functional mushroom company, which offers expansive distribution opportunities across Levitee’s larger acquisitions.
- Project Buddha is an early mushroom tea company with strong distribution and an intended purchasing agreement execution with Levitee Labs once the company reaches over C$1 million in revenue.
- Project Coconut is an omnichannel superfoods and supplements brand with a 300 percent growth rate in the last two years and contains over 180 SKUs across three encompassed brands.
Sporeo Supply – Mushroom Cultivation
Sporeo Supply centralizes all sterilization operations and offers cultivators high yield growth formulas for mushroom spawn and substrate. The company is currently building a production facility near Vancouver, British Columbia that will address the market fragmentation for mushroom cultivators, increase standardization of manufacturing practices for future psilocybin production and advance its production of ready-to-grow mushroom kits for consumers.
Its products will be available through retail, wholesale and e-commerce channels and aim to defragment the mushroom cultivation ecosystem. The company has secured a strategic partnership with My Green Planet to expand its reach and provide cultivators with the full range of growing materials required for the cultivation of all mushrooms.
Levitee Labs’ Management Team
Pouya Farmand — CEO & Co-Founder
Pouya Farmand is an experienced financier and entrepreneur with over ten years in the financial markets, primarily in investment banking and venture capital. He has been involved in over 35 transactions ranging from C$1 million to C$50 million.
Kelly Abbott — COO & Director
Kelly Abbott has over ten years of experience in entrepreneurship and software development. He was the former founder and CEO of ParcelPal Technologies, overseeing over 400 employees at its peak.
Mason M. Darabi — CFO
Mason M. Darabi is an experienced CPA with a long history of working in various accounting roles in Canadian accounting firms including MNP, Imperial Oil, RSM Canada and PwC. In his most recent role, he led Ag Data from an idea to a thriving initiative, at the national level for MNP LLP.
Ken Osborne — CFA, Head of M&A, Co-Founder
Ken Osborne is a capital markets professional with diverse experience in both public and private markets covering over 20 capital raises and C$500 million in M&A activity.
Marc Momeni — Executive VP
Marc is a finance professional with over 10 years of experience in financial services and banking. With a key competency in building and managing teams, Marc has been able to scale multiple businesses from start-up to over 7 figures.
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