INN caught up with Richard Carleton of the Canadian Securities Exchange to discuss the rush of interest in investing in psychedelics.
A Canadian securities executive believes psychedelics investment opportunities at their core relate most to the pharmaceutical industry.
The Investing News Network (INN) met up online with Richard Carleton, CEO of the Canadian Securities Exchange (CSE), to discuss the growth potential of psychedelics as an investment proposal and the role he expects his exchange to see.
He also told INN about his reaction the first time he heard about psychedelics investing.
While excitement about the psychedelics arena is starting to add up, Carleton was more measured and said the industry will likely perform at a speed similar to that of the pharmaceutical space.
Among other things, that means companies will have to engage in time-sensitive trials that depend on a variety of circumstances for approval. In fact, Carleton added, he expects to see a lot of psychedelics companies operate without a hint of revenue for some time.
As the CSE moves forward with psychedelics companies, Carleton said the exchange’s staff have relevant expertise from years of dealing directly with cannabis stocks — many of these companies operate in jurisdictions with confusing regulatory frameworks.
Various US-based cannabis companies were directed to raise capital in Canada due to the federal illegality of the drug in America, which prevented them from listing on US exchanges. These firms have for the most part had to list on the CSE and OTC Markets exchanges.
Carleton said in some of his earliest meetings with psychedelics companies he heard similar issues to those seen in the cannabis space. “They had the same challenges because conventional private equity, venture capital … were not all that interested in investing in these companies in an early stake.”
Psychedelics lie in a complicated area of legality as some international jurisdictions allow for some use of the drugs, but the US and Canada still have strict policies. However, from a medical standpoint, both nations have shown a willingness to engage with the benefits these drugs have for patients.
For example, Canada recently allowed four terminally ill patients to receive psilocybin therapy in a landmark announcement. Below the border, the US Food and Drug Administration has held positive conversations with researchers exploring psychedelic substances for the relief of mental illnesses.
Check out the video above to hear the full talk with Carleton, and click here if you’d like to get familiarized with listed psychedelics companies.
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Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.