MedicalGold's Canadian Top 5 Insider Buy List: Q1 2022

March 14 - April 5, 2022

Cardiol Therapeutics (CRDL)

Cardiol Therapeutics Inc. (NASDAQ: CRDL) (TSX: CRDL) is a clinical-stage life sciences company focused on the research and clinical development of cannabidiol as an anti-fibrotic and anti-inflammatory therapy for the treatment of cardiovascular disease ("CVD"). The Company's lead product candidate, CardiolRx™, is a pharmaceutically produced oral cannabidiol formulation that is being clinically developed for use in cardiovascular medicine. CardiolRx™ is currently being evaluated in a Phase II/III multi-national, randomized, double-blind, placebo-controlled study (the LANCER trial). LANCER is designed to evaluate the efficacy and safety of CardiolRx™ as a cardioprotective therapy to reduce major cardiovascular and respiratory events in patients hospitalized with COVID-19 who have a prior history of, or risk factors for, CVD, and to investigate the influence CardiolRx™ has on key biomarkers associated with heart disease. Cardiol has also received IND authorization from the FDA to conduct a Phase II multi-national, randomized, double-blind, placebo-controlled trial designed to evaluate the efficacy and safety of CardiolRx™ in acute myocarditis, which remains an important cause of acute and fulminant heart failure in young adults and is a leading cause of sudden cardiac death in people less than 35 years of age. In addition, Cardiol is developing a subcutaneous formulation of CardiolRx™ for the treatment of fibrosis and inflammation in the heart that is associated with the development and progression of heart failure - a leading cause of death and hospitalization in the developed world, with associated healthcare costs in the U.S. exceeding $30 billion annually.

{Investor Presentation}

Recent insider purchases

CRDL.TO (Daily)

CRDL - Working on a rounding bottom pattern with improving Relative Strength. A weekly close above $2.25 would confirm the bottom is in place and target a further 20%-30% of upside.

Cybin Inc. (CYBN)

Cybin Inc. (NEO:CYBN) (NYSE American:CYBN) (“Cybin” or the “Company”) is a leading ethical biopharmaceutical company, working with a network of world-class partners and internationally recognized scientists, on a mission to create safe and effective psychedelic therapeutics for patients to address a multitude of mental health issues. Headquartered in Canada and founded in 2019, Cybin is operational in Canada, the United States, United Kingdom and Ireland. The Company is focused on progressing "Psychedelics to Therapeutics™" by engineering proprietary drug discovery platforms, innovative drug delivery systems, novel formulation approaches and treatment regimens for mental health disorders.

2021 was a very producrive year for the company:

• Awarded Notice of Allowance from U.S. Patent and Trademark Office for CYB004 (deuterated psychedelic tryptamine) for the treatment of anxiety disorders;
• Confirmed Scientific Advice Meeting with UK Medical and Healthcare Products Regulatory Agency for lead candidate CYB003 for the treatment of major depressive disorder and alcohol use disorder;
• Announced FDA Investigational New Drug and Institutional Review Board Approvals for a co-funded investigator-initiated Phase 2 clinical trial evaluating psychedelic-assisted psychotherapy to treat frontline clinicians experiencing COVID-related distress utilizing the EMBARK psychedelic facilitator training program;
• Awarded Grant for Psychedelic Treatment Clinic to Lenox Hill Hospital to benefit underserved communities. Lenox Hill Hospital, part of Northwell Health is the largest healthcare system in New York State;
• Announced Positive CYB003 Data demonstrating significant advantages over oral psilocybin for the treatment of mental health disorders. The Company’s deuterated psilocybin analog from its CYB003 program demonstrated a 50% reduction in variability compared to oral psilocybin, a 50% reduction in dose compared to oral psilocybin, a 50% shorter time to onset when compared to oral psilocybin and nearly double brain penetration when compared to oral psilocybin;
• Granted a Schedule I Manufacturing License from the U.S. Drug Enforcement Agency for the Company’s Boston-area research lab that is expected to allow the Company to expand its internal research and development capabilities;
• Received Approval from FDA for its Investigational New Drug Application to proceed with a Company-sponsored feasibility study using the Kernel Flow quantitative neuroimaging technology to measure ketamine’s psychedelic effect on cerebral cortex hemodynamics;
• Launched the EMBARK Psychedelic Facilitator Training Program in collaboration with the University of Washington in preparation for the first clinical trial of psilocybin-assisted psychotherapy to address COVID-19 related distress in frontline healthcare professionals;
• Completed 74 In-Vitro and In-Vivo Evaluations of the Company’s expanding portfolio of psychedelic compounds being designed for potential therapeutic applications for several mental health conditions. To date, more than 50 novel compounds have been evaluated;
• Signed Drug Development Agreement with Catalent which employs around 15,000 people, including approximately 2,400 scientists and technicians, at more than 45 facilities;
• Became the First Psychedelic Company to list on the NYSE American;
• Raised Nearly $70M through a bought-deal offering and overnight market financing taking the total capital raise since the company’s inception to over $120M;
• Initiated Next Phase of Company’s Digital Therapeutics Platform which will better enable the evaluation of patient outcomes through a highly secure, patient-centered data analytics platform for better pre- and post-psychedelic treatments;
• Announced Alcohol Use Disorder and Anxiety Disorders as New Target Indications alongside the Company’s previously announced major depressive disorder target indications;
• Expanded patent portfolio to cover, among other things, novel psychedelic compounds, integration of delivery platforms, methods of use in psychiatric indications, drug discovery pipeline of modified and novel ergolines, tryptamines and phenethylamines;
• Entered into Exclusive Research and Development Collaboration agreement with TMS NeuroHealth Centers Inc., a wholly-owned subsidiary of Greenbrook TMS Inc. (TSX:GTMS) (NASDAQ:GBNH), which operates 129 outpatient mental health service centers in the United States.

Recent insider purchases

CYBN.NE (Daily)

CYBN - An absolutely dreadful chart with no real signs of a bottom being put in place here. Every bounce continues to get sold off with the streak of lower highs and lower lows still very much in place.

Algernon (AGN)

Algernon Pharmaceuticals (“Algernon”) (CSE: AGN) (FRANKFURT: AGW) (OTCQB: AGNPf) is a clinical-stage drug repurposing company that investigates safe, already approved drugs, including naturally occurring compounds, for new disease applications. The company’s research and development strategy relies on the efficient, expedited advancement of known chemical entities into new human trials. Algernon is also developing dosing regiments, novel drug formulations and seeking new regulatory approvals in global markets. The company specifically investigates drug compounds that have shown clinical success in some geographies but have never been approved in the U.S. or Europe, to avoid off-label prescription writing.

Read MedicalGold's full coverage of Algernon

Algernon’s drug development pipeline addresses three disease areas: stroke, idiopathic pulmonary fibrosis (IPF) / chronic cough, and pancreatic cancer (PC) and small cell lung cancer (SCLC). Their most advanced drug candidate is NP-120 (ifenprodil) as a treatment for IPF and IPF-associated chronic cough, with a Phase 2 study underway and results expected in Q2 2022.  Three Phase 1 studies are planned in 2022 for AP-188 (“N,N-Dimethyltryptamine or DMT”) a known psychedelic compound, as a treatment for stroke, and ifenprodil as a treatment for pancreatic cancer (PC) and small cell lung cancer (SCLC). The company anticipates initiating a Phase 2 study for DMT as a treatment for acute stroke in Q4 2022. Read MedicalGold's primer on DMT and other medical psychedelics as novel treatments for mental illness.

{Investor Presentation}

Recent insider purchases

AGN.CA (Daily)

AGN - Algnernon is a highly volatile stock that has been consolidating just above the $6 level recently. Strong support exists near $5 with the next area of resistance between $7.50 and $8.00.

Medicenna Therapeutics (MDNA)

Medicenna Therapeutics (TSX:MDNA) is a Toronto-based clinical-stage immune-oncology company advancing novel, highly selective versions of IL-2, IL-4 and IL-13 Superkines™ and first in class Empowered Cytokines™. The company is developing a unique set of tunable Superkines™ that can be fused with pro-apoptotic proteins to precisely deliver potent cell-killing agents to cancer cells, the immunosuppressive tumor micro-environment, and cancer stem cells without harming healthy cells.

Medicenna is no stranger to MedicalGold. ‍

We have followed the company since late-2020 and are pleased to report that they have accomplished many of the milestones that they projected:

• The company successfully listed on the NASDAQ
• Lead drug candidate MDNA55 (for treating glioblastoma) was approved for a Phase 3 trial by the FDA and the company is currently looking for a strategic partnership to pursue the pivotal study through commercialization. We should expect to see some IoIs by end of H1 2022.
• Lead drug candidate MDNA11 (for treating cancers) showed positive preliminary safety data in a Phase 1/2 study. The study will complete by mid-2022.

{Investor Presentation}

Recent insider purchases

MDNA.TO (Daily)

MDNA - Last Friday, MDNA spiked up to almost $2.00 only to get sold back down into the $1.60s. Another example of a biotech that needs to see rallies hold before we can be encouraged that a bottoming process is taking hold. With C$20 million in cash and a sub-$100 million market cap, MDNA is moving into deep value territory where I would expect smart money to begin accumulating positions.

FSDPharma (HUGE)

FSD makes our list for the fourth time this quarter.

FSD Pharma (CSE:HUGE) is a biopharmaceutical company developing treatments for neuro and inflammatory disorders. The company’s focus is on developing and acquiring assets to augment the efforts to complete Phase 2 clinical trials and enter Phase 3 clinical trials for its three drug candidates.

• FSD-PEA: an ultra-micro-PEA compound with the potential to address a range of inflammatory conditions. FSD-PEA has completed Phase 1 FDA approved trials with positive topline results, and indications for Phase 2 are currently being evaluated.
• Lucid-PSYCH: a unique psychedelic molecule currently undergoing IND-enabling studies with a targeted treatment for neuropsychiatric disorders, such as Major Depressive Disorder.
• Lucid-MS: a patented, proprietary neuroprotective new chemical entity (NCE) that has demonstrated in preclinical models the potential to reverse and prevent myelin degradation, an underlying cause of Multiple Sclerosis and other neurodegenerative orders.

The company has had two key developments that contributed to its increasing stock price:

1. The company announced the acquisition of Lucid Psycheceuticals for $8.9M on September 21, 2021, adding Lucid-PSYCH and Lucid-MS to its drug development pipeline.
2. The company announced the sale of Cobourg Facility (cannabis processing) for CAD$16,500,000.

{Investor Presentation}

Recent insider purchases

HUGE.CA (Daily)

HUGE - Another stock in a pronounced downtrend that has recently been trying to find support near the $1.00 level. $1.40 is the first level of important upside resistance that HUGE will need to surpass in order to offer any encouragement a low is in place.

Feb 14- March 5, 2022

Kane Biotech (KNE)

Kane Biotech (CSE:KNE) is a discovery and development company focused on novel products that prevent and disperse bacterial biofilms. Kane was formed to translate these discoveries into innovative solutions for human and animal health, as well as industrial applications. Kane’s commercial strategy is to create value for shareholders through the establishment of global partnerships and licensing agreements with leading companies to commercialize their innovations. The company has a portfolio of biotechnologies, intellectual property (81 patents and patents pending, trade secrets, and trademarks) and products developed by the company's own biofilm research expertise and acquired from leading research institutions. StrixNB™, DispersinB®, Aledex™, bluestem™, bluestem®, silkstem™, goldstem™, coactiv+™, coactiv+®, DermaKB™ and DermaKB Biofilm™ are trademarks of Kane Biotech Inc.

The company recently announced that it has signed collaboration agreements with Dr. James Doub, MD, Assistant Professor of Medicine, University of Maryland School of Medicine’s Institute of Human Virology, and the University of Texas Medical Branch (UTMB) to study the use of DispersinB® with Prosthetic Joint Infection (PJI) patients. The group is securing funding from the National Institutes of Health (NIH) for pre-clinical work to be done by Josh Wenke, a Professor in the Department of Orthopedic Surgery and Rehabilitation at UTMB.

{Investor Presentation}

Recent insider purchases

KNE.V (Daily)

KNE and PILL both in pronounced downtrends along with the sector. We need to see more evidence of a mature bottoming process before becoming constructive on these charts.

CannTab Therapeutics (PILL)

Canntab Therapeutics (CSE:PILL) is a Canadian biopharmaceutical company focused on the manufacturing and distribution of a suite of hard pill cannabinoid formulations in multiple doses and timed-release combinations. Long referred to as Cannabis 3.0 by the Company, Canntab's proprietary hard pill cannabinoid formulations provide doctors, patients and consumers with medical grade solutions which incorporate all the features one would expect from any prescription or over the counter medication sold in pharmacies around the world. These will include the following formulations: once a day and extended release, both providing an accurate dose and improved shelf stability. Canntab holds a Cannabis Standard Processing & Sales for Medical Purposes License, a Cannabis Research License, and an Industrial Hemp License from Health Canada. Canntab trades on the Canadian Securities Exchange under the symbol PILL, on the OTCQB under the symbol CTABF, and on the Frankfurt Stock Exchange under the symbol TBF1.

The company recently announced hat it has reached an agreement with 36Eight Technologies Inc., a growing bioinformatics pharmacological healthcare data and technology company, which has developed  a proprietary artificial intelligence and machine learning algorithm which augments the  underlying clinical data/knowledge to efficiently understand a patient's unique medical needs. 36Eight's first-of-its-kind clinical intelligence software assists physicians, nurses, and pharmacists in screening for drug-cannabis interactions, and to optimize health outcomes via cannabis product dose combination, titration, and ongoing clinical assessment.

Recent insider purchases

PILL.CA (Daily)

FSDPharma (HUGE)

FSD makes our list for the third time this quarter.

FSD Pharma (CSE:HUGE) is a biopharmaceutical company developing treatments for neuro and inflammatory disorders. The company’s focus is on developing and acquiring assets to augment the efforts to complete Phase 2 clinical trials and enter Phase 3 clinical trials for its three drug candidates.

• FSD-PEA: an ultra-micro-PEA compound with the potential to address a range of inflammatory conditions. FSD-PEA has completed Phase 1 FDA approved trials with positive topline results, and indications for Phase 2 are currently being evaluated.
• Lucid-PSYCH: a unique psychedelic molecule currently undergoing IND-enabling studies with a targeted treatment for neuropsychiatric disorders, such as Major Depressive Disorder.
• Lucid-MS: a patented, proprietary neuroprotective new chemical entity (NCE) that has demonstrated in preclinical models the potential to reverse and prevent myelin degradation, an underlying cause of Multiple Sclerosis and other neurodegenerative orders.

The company has had two key developments that contributed to its increasing stock price:

1. The company announced the acquisition of Lucid Psycheceuticals for $8.9M on September 21, 2021, adding Lucid-PSYCH and Lucid-MS to its drug development pipeline.
2. The company announced the sale of Cobourg Facility (cannabis processing) for CAD$16,500,000.

{Investor Presentation}

Recent insider purchases

HUGE.CA (Daily)

HUGE formed a rounding bottom pattern and surged nearly 30% on February 25th. In the last week of trading HUGE has formed a high & tight bullish flag pattern on declining trading volume. HUGE has formed a healthy chart pattern bottom and the next leg higher (above $1.40) should see HUGE shares trade up to at least $1.70. There is strong support at $1.10.

Jan 21 - Feb 11, 2022

The biotech beatdown continued through the end of January with the XBI Biotech ETF finally reaching bottom on January 28th and staging roughly a 10% bounce since. The bloodshed in medical psychedelics stories has been extensive, however, until last month we had seen very little insider buying. Several weeks ago that began to change and there were a number of filings across the space, including in some of the most beaten down names like DMT and ENBI. The biggest insider purchase in the medical psychedelics space is on the way, with TRYP Co-Founder and largest shareholder William Garner investing $2,000,000 via private placement financing in the company he helped to create.

FSDPharma (HUGE)

FSD makes our list for the second time this quarter.

FSD Pharma (CSE:HUGE) is a biopharmaceutical company developing treatments for neuro and inflammatory disorders. The company’s focus is on developing and acquiring assets to augment the efforts to complete Phase 2 clinical trials and enter Phase 3 clinical trials for its three drug candidates.

The company announced the acquisition of Lucid Psycheceuticals for $8.9M on September 21, 2021, adding Lucid-PSYCH and Lucid-MS to its drug development pipeline. As part of the buy-out, FSD also added Dr. Lakshmi P. , Lucid’s co-founder and Senior scientist at Krembil Brain Institute as the new CEO of Lucid, which will be the Company’s wholly-owned subsidiary. FSD recently made headlines for repurchasing 2,000,000 of its subordinate class B voting shares, which is ~5% of the total issued and outstanding shares. The company claims that this repurchase over the next twelve months is an attempt to return value to its shareholders. But perhaps this is an indication that the insiders foresee a massive jump in valuation and will soon raise capital at the expense of its current shareholders in the present.

{Investor Presentation}

Recent insider purchases

‍We have one repeat name on this month’s Canadian insider buy list, FSD Pharma (CSE:HUGE). FSD Pharma co-founder Zeeshan Saeed has been a consistent buyer of HUGE shares in recent months and his C$50,000 worth of open market purchases puts HUGE at #1 on this month’s list:

Mr. Saeed’s buying is notable because he did not purchase any shares on the open market for more than a year. However, Since the end of December 2021 he has accumulated more than 100,000 HUGE shares through open market purchases, increasing his personal holdings by more than 50%.

HUGE. CA (Daily)

Despite the recent insider buying and company share repurchases HUGE is currently trying to snap an 8-week losing streak. The downtrend has become so pronounced that the company’s current market cap is approaching its cash position ($39.3 million) according to its most recent financial statements. HUGE bears watching closely due to strong insider buying activity, a formidable cash position, and a deeply oversold chart.

Satellos Bioscience (MSCL)

Satellos Bioscience (TSX-V:MSCL) is a biotechnology company dedicated to developing lifechanging medicines that have the potential to correct a previously unrecognized root cause of degenerative muscle disorders which their scientists have identified. Satellos was established in 2018 to translate the ground-breaking discoveries of its scientific founder, Dr. Michael Rudnicki, a thought leader who discovered and has shown how muscle stem cells regulate muscle repair and growth throughout life. Satellos' lead program is focused on developing an oral therapeutic drug (i.e., a pill) to treat Duchenne muscular dystrophy where we have shown that the body's muscle stem cells don't produce enough muscle cell progenitors to keep up with the continuous damage caused by the disorder. The company's drug development work offers hope for people living with Duchenne that a drug may have the potential to reset the body's innate ability to repair and grow muscle. To expand their programs, Satellos has created a proprietary discovery platform, MyoReGenXTM, to identify other muscle disorders where deficits in muscle stem cell regeneration can be addressed with drug treatment.

2021 was a very productive year for the fledgling biotech. Satellos successfully completed a go-public event in August, a reverse takeover (RTO) of iCo Therapeutics Inc. which improved their access to financing and attracted new investors to join their mission. The company conducted a concurrent $7.25M private placement alongside the RTO and brough in an additional $1.9M through the exercise of warrants. This injection of cash allowed Satellos to ramp up their R&D efforts and quadruple he size of the research team (from 5 people to 20), resulting in the identification of three lead chemical compounds. The company also announced a partnership with Université de Sherbrooke to assess the potential of the lead drug candidate(s) in other ultra-rare dystrophies. The company also announced a number of appointments to their executive team and Board in their End of 2021 letter to shareholders.

{Investor Presentation}

Recent insider purchases

Co-founder and CEO Frank Gleeson has been busy adding to his pile of MSCL shares in recent weeks:

Gleeson purchased more than 40,000 shares on January 24th/25th and MSCL shares proceeded to sharply drop another ~20% before finding a bottom at $.72 on February 2nd.

MSCL.V (Daily)

Similar to HUGE, MSCL’s chart shows a clear downtrend and little evidence that a bottom is in place.

Medicenna Therapeutics (MDNA)

Medicenna Therapeutics (TSX:MDNA) is a Toronto-based clinical-stage immune-oncology company advancing novel, highly selective versions of IL-2, IL-4 and IL-13 Superkines™ and first in class Empowered Cytokines™. The company is developing a unique set of tunable Superkines™ that can be fused with pro-apoptotic proteins to precisely deliver potent cell-killing agents to cancer cells, the immunosuppressive tumor micro-environment, and cancer stem cells without harming healthy cells.

Medicenna is no stranger to MedicalGold. ‍

We have followed the company since late-2020 and are pleased to report that they have accomplished many of the milestones that they projected:

• The company successfully listed on the NASDAQ
• Lead drug candidate MDNA55 (for treating glioblastoma) was approved for a Phase 3 trial by the FDA and the company is currently looking for a strategic partnership to pursue the pivotal study through commercialization. We should expect to see some IoIs by end of H1 2022.
• Lead drug candidate MDNA11 (for treating cancers) showed positive preliminary safety data in a Phase 1/2 study. The study will complete by mid-2022.

{Investor Presentation}

Recent insider purchases

‍CEO Fahar Merchant resumed his open market purchases in January:

Merchant already has a massive holding in MDNA which makes his purchase of an additional 13,000 shares all the more notable.

MDNA.TO (Daily)

The MDNA chart exhibits a rounding bottom pattern, Relative Strength (RSI) in bullish territory, and a notable bullish divergence from the biotech sector in January. Above resistance at $2.40 Medicenna shares will target the downsloping 200-day moving average near $3.00 next. MDNA has a good look to it and a weekly close above $2.40 would offer confirmation that a major low was put in place on January 17th at $1.73 per share.

Small Pharma Inc. (DMT)

Small Pharma Inc. (TSX-V:DMT) is a drug development firm leading the world’s first clinical trial for DMT-assisted psychedelic therapy in major depression. The company recently completed a Phase 1 clinical trial of their lead drug candidate, DMT-derivative "SPL026", in combination with supportive psychotherapy for the treatment of Major Depressive Disorder). The UK's regulatory body, the Medicines and Heath Products Regulatory Agency (MHRA), granted SPL026 an "Innovation Passport" to accelerate the development of the drug. The company announced that they have initiated a Phase IIa clinical trial to explore the effectiveness of SPL026 in combination with psychotherapy for the treatment of Major Depressive Disorder. With over $45M in the bank and a current operating burn rate of ~$4M per quarter, Small Pharma is well-capitalized and ready to spend cash on their sole drug development program.

{Investor Presentation}

Recent insider purchases

Chair Lyne Fortin purchased 50,000 shares on the open market on February 3rd, doubling her share holdings in the process.

The dollar amount of the purchases aren’t massive but they are notable because we haven’t seen much insider buying in medical psychedelics until recently.

DMT.V (Daily)

After a ~70% decline from last October’s peak, DMT shares are experiencing the strongest buying activity in months. DMT shares found support at $.20 in January amid a number of bullish momentum divergences. Some minor resistance in the $.30-$.35 area should slow-down DMT’s ascent, but the risk/reward favors buying pullbacks.

Entheon Biomedical (ENBI)

Entheon Biomedical (CSE:ENBI) is a biomedical company focused on the research and development of psychedelic drugs and leading-edge biomarkers to provide personalized treatment of addiction disorders. Entheon is comprised of three divisions, Entheon RX™, focused on the development of therapeutic drugs, using N, N-dimethyltryptamine (DMT) as the pharmacological benchmark; Entheon ID™, focused on identification, analysis and predictive use of EEG biomarkers and genetics in the selection and management of drug treatment; and Entheon IQ™, focused on the development of treatment algorithms through the analysis of patient data. Subject to obtaining all requisite regulatory approvals and permits, Entheon intends to generate revenue through the sale of its DMT Products to physicians, clinics and licensed psychiatrists in the United States, certain countries in the European Union and throughout Canada. The company recently announced the approval to initiate their Phase 1 study "EBRX-101" of DMT for the treatment of addiction disorders by the Dutch regulatory agency.

Recent insider purchases

Entheon Biomedical’s Chief Business Officer Dr. Brian Jahns doubled his shareholdings through the open market purchase of 50,000 ENBI shares in January:

It is not a large dollar amount of buying, however, it does add some additional evidence that insiders are seeing value in the shares of these deeply oversold stocks.

ENBI.CA (Daily)

ENBI’s chart looks almost identical to the DMT chart, albeit a bit worse.

Downtrends don’t get much more clear than the one ENBI suffered from last November to the January low at $.20. RSI and CCI remain mired in bearish territory and the bounce off the January low has been quite weak.

December 31 - Jan 17, 2022

FSD Pharma (HUGE)

FSD Pharma (CSE:HUGE) is a biopharmaceutical company developing treatments for neuro and inflammatory disorders. The company’s focus is on developing and acquiring assets to augment the efforts to complete Phase 2 clinical trials and enter Phase 3 clinical trials for its three drug candidates :

• FSD-PEA: an ultra-micro-PEA compound with the potential to address a range of inflammatory conditions. FSD-PEA has completed Phase 1 FDA approved trials with positive topline results, and indications for Phase 2 are currently being evaluated.
• Lucid-PSYCH: a unique psychedelic molecule currently undergoing IND-enabling studies with a targeted treatment for neuropsychiatric disorders, such as Major Depressive Disorder.
• Lucid-MS: a patented, proprietary neuroprotective new chemical entity (NCE) that has demonstrated in preclinical models the potential to reverse and prevent myelin degradation, an underlying cause of Multiple Sclerosis and other neurodegenerative orders.

The company announced the acquisition of Lucid Psycheceuticals for $8.9M on September 21, 2021, adding Lucid-PSYCH and Lucid-MS to its drug development pipeline. As part of the buy-out, FSD also added Dr. Lakshmi P. , Lucid’s co-founder and Senior scientist at Krembil Brain Institute as the new CEO of Lucid, which will be the Company’s wholly-owned subsidiary. FSD recently made headlines for repurchasing 2,000,000 of its subordinate class B voting shares, which is ~5% of the total issued and outstanding shares. The company claims that this repurchase over the next twelve months is an attempt to return value to its shareholders. But perhaps this is an indication that the insiders foresee a massive jump in valuation and will soon raise capital at the expense of its current shareholders in the present.

‍As of September 30, 2021, the company held $39.3M cash in the bank (all of which was acquired through the sale of stock in 2021) and current liabilities of $8.5M. With a burn rate of $6M per quarter (three months ended 9/30/2021), the company will likely need to raise capital in the public markets to finance its operating activities and any acquisitions they intend to make. The company has stated that they are actively looking for buying opportunities to integrate artificial intelligence into its drug development pipeline. Get ready for a great buying opportunity.

{Investor Presentation}

Recent insider purchases

The recent insider buying in HUGE is significant in that 3 different insiders have purchased a total of roughly C$250,000 in shares in the last three weeks.

This is the largest public market insider buying spree in more than two years in HUGE. In addition, the recent spate of open market purchases by insiders appears to have also coincided with signs of a bottoming process taking hold in the HUGE daily chart:

HUGE.CA (Daily)

A potential double-bottom has formed with two recent tests of $1.26; a daily close above $1.45 on above average volume would confirm a bottom has been put in place. In that event, former support near $1.95-$2.00 would become the next upside target.

Mindset Pharma (MSET)

Mindset Pharma Inc. (CSE:MSET) is a drug discovery and development company  focused on creating optimized and patentable next-generation psychedelic medicines to treat neurological and psychiatric disorders  with unmet needs. Mindset was established in order to develop next generation pharmaceutical assets that leverage the breakthrough therapeutic potential of psychedelic drugs. Mindset is developing several novel families of next generation psychedelic compounds, as well as an innovative process to chemically synthesize psilocybin as well as its own proprietary compounds.

The company had an exceptionally busy 2021:

• Lead drug candidate, MSP-1014 (a psilocybin-based analog), was selected to proceed in preclinical (IND)-enabling studies. This is the first step towards approval to start Phase 1 human clinical trials.
• Filed four new provisional patents covering novel psilocybin, DMT, & 5-MeO-DMT molecular composition, synthesis, and manufacturing methods.
• Synthesized over 100 novel compounds in more than 500 in vitro and in vivo studies.
• Appointed Dr. Malik Slassi as Senior Vice President of Innovation, Mr. Ian Dean as Director of Preclinical Development, and Drs. Michael Rogawski, Guy Higgins, Joseph Gabriele and Ishrat Husain to its Scientific Advisory Board (SAB).

Recently, The McQuade Center for Strategic Research and Development and Mindset Pharma announced a collaboration to develop novel medicinal psychedelics. This is the first time that a psychedelic biotech has received funding from a large pharmaceutical company (McQuade is owned by the pharmaceutical giant, Otsuka Pharmaceuticals). Under the agreement, The McQuade Center will commit $5M in funding and strategic guidance to support the development Mindset’s novel psychedelics through Phase 1a and Phase 1b clinical trials in return for exclusive rights to any asset sale, licensing opportunity, or future collaborations for MindSet's drugs. They also received a right of first negotiation for any M&A deal involving MindSet as a whole.

{Investor Presentation}

Recent insider purchases

Mindset Pharma Chairman Richard Patricio has purchased nearly C$300,000 worth of MSET shares since the beginning of the year.

Patricio has been a steady buyer of MSET shares since the beginning of 2021. However, his last purchase before the recent batch was in July 2021, just before MSET’s share price jumped by nearly 100% in a few weeks.

MSET.CA (Daily)

CBD Global Sciences (CBDN)

CBD Global Sciences (CNSX:CBDN) is an American multi-national consumer goods and farming company headquartered in Denver, Colorado, founded by American entrepreneurs Brad Wyatt and Glenn Dooley. It specializes in a wide range of CBD products and Brands featuring high quality full spectrum CBD. The company has a heavy “ethical consumption” angle, from their website: “Our vision is clear…ensuring ethical quality management and control, creating protective legal and regulatory guidelines globally, setting new standards of quality, bringing a productivity mindset, and inspiring our team to keep the consumer at the center of everything we do. As a company we strive to create innovative ways to push the envelope with new, cutting-edge CBD products.”

The CBD market is fragmented and over-saturated. The untenable relationship between US federal law and state laws and reluctance of commercial banks to get involved with marijuana companies makes this industry very difficult to operate in. Inherent in these risks are rich opportunities for innovation and consolidation. CBD Global Science states on the first slide in their investor deck that their focus is on consolidation and playing a strategic role in assisting competing companies manufacture and distribute their products. Their vertically integrated structure will allow them to add value at any point in the product development cycle. It’s possible that they could help scale multiple partners, expand their distribution networks, and profit from the innovation of others. The more the merrier.

Last quarter, CBD Global Sciences announced that it has executed a definitive agreement for the acquisition of 100% of Resinosa LLC, a vertically integrated CBD company with expertise in hemp genetics, cloning, farming, harvesting, processing and manufacturing of finished products. Resinosa owns a GMP-grade clean room and is capable of producing $46,200,000.00 of finished products per month, which would increase CBD Global Science’s revenue by 2-4x. Increased insider buying could be indicative of another upcoming acquisition.

{Investor Presentation}

Recent insider purchases

The large insider purchase by CBDN’s CFO reported last week comes after a long period of relentless selling by another large shareholder who at one point controlled more than 10% of the company’s outstanding shares.

The price paid by CFO Alexander McAulay, $.1575, now becomes an important downside price point and potential technical support level. This is also the first insider purchase of any kind reported by a CBDN insider to SEDI.

CBDN.CA (Daily)

VitalHub (VHI)

VitalHub (TSE:VHI) is a software consolidator focused on developing digital solutions for patient management. The company has adopted an acquisitive strategy to standardize electronic health records (HER) and make it simple for a patient’s multiple healthcare providers (specialists) to communicate to develop comprehensive treatment plans for each individual patient. 70% of their revenue comes from software solutions to improve organizational efficiencies in the patient processing system of healthcare institutions. As of November 2021, the company had $16M cash on hand with annual recurring revenues of $21.6M with a gross profit margin of over 75%.

Patient flow management in the healthcare industry represents a $2.1B market, which VitalHub intends to take-over through the acquisition of similar software companies within the healthcare space. Their track record of acquisitions and partnerships  is impressive and can be traced back to the company’s formation in 2018. VitalHub has identified 400 potential acquisition targets that have an annual revenue of $1-2M each and are willing to acquire for 1.5x revenue. They anticipate being able to cut costs by 20% and increase EBITDA by 30% through cross-selling and offshore R&D. The company was sitting on $12.6M cash as of September 30, 2021, and will clearly need to raise capital to fund their aggressive M&A strategy in 2022.

{Investor Presentation}

Recent insider purchases

Last month’s open market purchases by VHI Director Francis Shen totaled nearly $500,000 and all took place at higher share prices than VHI shares are trading today.

Shen has been a consistent accumulator of VHI shares in the last two years through a combination of open market purchases, private placement financing, and warrant exercises. Through a combination of multiple entities Shen has acquired nearly 20% ownership of VHI and the most recent purchases were the highest share prices paid to date by Shen.

VHI.TO (Weekly)

The VHI weekly chart shows a 12+ month consolidation amid a strong long term uptrend. Strong support near C$2.80 with next resistance at C$3.40 followed by the all-time high at C$3.77.

ImmunoPrecise Antibodies (IPA)

ImmunoPrecise (NASDAQ:IPA) has almost 40 years’ experience in antibody discovery and development. Per their investor presentation: “The Company aims to transform the conventional, multivendor, product development model by bringing innovative and high-throughput, data-driven technologies to its partners, incorporating the advantages of diverse antibody repertoires with the Company’s therapeutic antibody discovery suite of technologies, to exploit antibodies of broad epitope coverage, multiple antibody formats, valency and size, and to discover antibodies against multiple/rare epitopes." Antibody therapies are particularly hot, representing seven out of the top 10 best-selling drugs in 2021. The therapeutic market is expected to grow to $300B by 2025.

IPA’s share structure is very tight, with only 20M shares outstanding and a valuation of $130M. The company is unique in that it performs its own research and development and offers Contract Research Organization (CRO) services to over 500 clients. The industry has increased demand for CRO services due to the efficiencies that these companies provide in offering data-driven, high-throughput solutions for drug development and clinical studies. The company banked $14.4M last year and has already brought in revenue of $7M in the first three weeks of 2022. The company is well-capitalized with $33.6M cash on hand, enough to advance the pre-clinical work for their 17 lead antibody and biologic drug candidates to the Investigational New Drug filing with the FDA and progress into Phase 1. Seven of these therapies are being developed for SARS-CoV-2. We have already seen how impressive the Regeneron and AstraZeneca monoclonal antibody therapies are for COVID, and with the virus quickly mutating we will continue to need antibodies that target the novel regions of each variant.

{Investor Presentation}

Recent insider purchases

IPA President & CEO Jennifer Bath took advantage of some tax loss silly season selling in her company’s shares and made multiple open market purchases in the final days of 2021:

With IPA shares up nearly 20% to in the first few weeks of 2022, the timing of her year-end purchases couldn't have been much better.

IPA.V (Daily)

IPA shares are forming a multi-month rounding bottom pattern with mounting signs of accumulation and improving Relative Strength. A confirmed breakout above $8.80 targets $11.00.