Levitee Labs

Overview

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,OTCPK:LVTTF) 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's acquisition strategy includes a focus on addiction clinics & pharmacies. Recent acquisition ACT Medical Centres serves as a base for future clinic acquisitions and already has a patient base of 35,000 visits yearly, positioning Levitee as the largest non-government provider of addiction services in Alberta with 70% percent currently conducted via telemedicine. It provides Levitee with a platform for future research opportunities and allows for the future delivery of psychedelic medicine to addiction and chronic pain patients. 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 Earth Circle Organics. 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$22.8 million in revenue in 2021. About C$13.2 million of the projected revenue comes from the company's ACT Medical Centres composed of five addiction clinics and three pharmacies. Levitee's major distribution partnership with My Green Planet is expected to have a year-end run-rate revenue of C$6 million while it expects C$3 million or 300% growth for its Earth Circle Organics acquisition.

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 redefining traditional mental health and addiction treatments through integrating evidence-based complementary medicines and novel psychedelic therapies into the traditional infrastructure of mental health treatment
• The company's current major assets include addiction clinics, specialized pharmacies, a proprietary addiction-focused platform, an omnichannel nutraceuticals company as well as having internally developed a mushroom feedstock manufacturing facility
• The company acquires and operates healthcare and nutraceutical assets through a vertically integrated M&A model, leveraging medical expertise, technology and resources
• The company's nutraceutical and superfoods acquisition pipeline could bring over $50 million in revenue through Earth Circle Organics 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 brands like Earth Circle Organics, OJIO, Earth Shift Products, 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.
• Levitee Labs completed the acquisition of BlockMD Telemedicine Platform, three specialised pharmacies and five addiction clinics in Alberta.
• 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 added superfoods to its portfolio by completing the acquisition of all the issued and outstanding shares of Earth Circle Organics Chain Inc.