An exciting point in the markets for Psychedelics! The technicals currently indicate money returning to the psychedelics sector. Now we just look for charts that are about to breakout, or have initiated a breakout. I will discuss the signs of money entering psychedelics a bit later on in this article, but let me introduce today’s chart idea: Mind Cure Health (MCUR.CN)
Mind Cure is where Psychedelics meets Technology. The company develops and commercializes mental health and wellness products in North America. It focuses on the development of digital therapeutics technology and researching psychedelic compounds to rapidly scale science-backed and evidence-based mental health therapy. The company develops iSTRYM, a digital therapeutics tool and first-of-its-kind software application that optimizes the healing journey for patients and clinicians before, during, and after therapy sessions.
So a full cycle program of mental wellness from the research to the remedy. Digital Therapeutics as they call it. Health interventions through a smart device to induce behavioral change in the patient. A really cool and valuable way of applying the power of Psychedelics for treating mental health conditions. Oh and not to mention cost effective. Their platform scales globally without the expensive clinic scale-out costs, and is not limited to just psychedelics!
Recent news includes the signing of a LOI with Awakn Life Sciences to Distribute Ketamine Protocol for alcohol use disorder into clinics across the US and Canada through Mind Cure’s iSTRYM digital therapeutics program.
MINDCURE released the minimum viable product (MVP) version of iSTRYM into partner clinics across North America in August and will begin full commercial deployment to all partner clinics in Q1 of 2022. The company forecasts 75 partner clinics in Canada and the US deploying iSTRYM upon commercialization. Further deployment anticipates 150 clinics across Canada, the US, the UK, and Europe by Q4 2022.
“Awakn’s goal is to fully integrate evidence-backed psychedelic-assisted psychotherapy into mainstream healthcare to better treat addiction. We’re currently building the UK and Europe’s leading chain of medical psychedelic clinics with a focus on treating addiction and other mental health conditions,” said Anthony Tennyson, CEO of Awakn Life Sciences. “We are extremely pleased that we now also have a partnership with MINDCURE to distribute our ketamine-assisted psychotherapy for Alcohol Use Disorder protocol through their iSTRYM platform in the US and Canada.”
Q1 2022 financial results were also recently released. Highlights include:
- Released the minimum viable product version of iSTRYM, the Company’s digital therapeutics (DTx) platform, into partner clinics across North America;
- Completed full chemical synthesis of ibogaine, launched the second stage of manufacturing, and filed two provisional patent applications;
- Developed proprietary ketamine-enhanced psychotherapy protocols for treatment of pain and depression;
- Completed a strategic equity investment in Awakn Life Sciences Inc.;
- Signed exclusive digital clinical data licensing agreement with ATMA Journey Centers; and
- Subsequent to quarter end, introduced the “Desire Project”, a clinical research program focused on the treatment of female hypoactive sexual desire disorder with MDMA-assisted psychotherapy.
- Cash and cash equivalents totalled $15.6 million as at August 31, 2021;
- Net loss for the three months ended August 31, 2021 was $2.8 million, comprised of non-cash operating expenses of $0.3 million, an inventory write down of $0.2 million; an unrealized investment loss of $0.1 million, and cash operating expenses of $2.2 million.
A good string of positive headlines, and the company is looking to expand into Europe while ramping up revenues. We are still early, but the future looks bright for Mind Cure. I like the technology and the use case for it. For those into the health benefits of Psychedelics, and for those who say that shrooms are going to be what Cannabis promised to be for health, then I think Mind Cure is a great example of utility.
An overall return of money flows into Psychedelics will only help buoy the recent share price of Mind Cure. Before I break down the great technicals, let’s look at some positive psychedelic signs.
Yesterday, I hinted at money returning to Psychedelics in my piece on Filament Health. Which by the way is breaking above the technical zone I mentioned in that article, but I digress.
The key thing I mentioned were the charts of Mind Med, and the ETF’s PSIL and PSYK.
PSIL confirmed a breakout above $9.50. A very positive sign. As long as we remain above, psychedelics maintain a bid. It’s a nice breakout pattern.
PSYK isn’t there just yet, but it is on the precipice of breaking out. A daily close above $7.40 triggers this breakout. Then things look real good. This chart is very similar to that of MindMed (MMED). We are watching for a confirmed breakout on both.
Technically, a lot of signs of money getting ready to jump back into Psychedelics.
Regular readers know the type of chart setups I love. Mind Cure is one of them. I love long downtrends with a basing pattern. There was some potential of a reversal back in July, when the stock was testing resistance of $0.475…and forming an inverse head and shoulders pattern, but it did not trigger. No worries, we just remain patient.
Recently, the stock has been testing all time lows around the $0.27 zone. And I bet this is showing up on many bottom picker screeners.
And it looks like bulls have hammered out a bottom. A very strong green candle close above my trendline and at support. Just a few days after Mind Cure released news on the LOI with Awakn Life. November 1st 2021 saw a volume of 252,597 shares traded, the most since September 22nd when we were testing previous record lows. With a technical break like this, I am hoping to see more volume and interest especially if those psychedelic ETFs get going.
To the upside there is some interim resistance at $0.375, but longer term resistance is up at $0.475.
