SpeakEasy Cannabis Club Ltd. (CSE: EASY) (Frankfurt: 39H) (the “Company” or “SpeakEasy”) a holder of a federal licence to cultivate, process and sell cannabis under the Cannabis Act is excited to announce it is 4 months into a 6-9 month application process to receiving its Narcotics Dealers License (“NDL“) in-order to develop and standardize psilocybin cultivation. A NDL licenced dealer may produce, assemble, sell, provide, transport, send, deliver, import or export a controlled drug (psilocybin) if they comply with the terms and conditions of their dealer’s licence and any permit issued under the licence.
SpeakEasy’s Narcotics Dealers Licence
In early January this year, SpeakEasy began the application process for an NDL and a section of SpeakEasy’s processing building has been earmarked as the location for the research and development area that would house a licence referred to as an NDL. The NDL allows research, development, purchase and sales among other activities of narcotics. SpeakEasy’s intent is to acquire a full catalogue of psilocybin bearing mushroom genetics in-order to develop cultivation methods, standardize potency and develop extracted concentrated products in preparation and with the expectation of the legalization of psilocybin in the Canadian market. SpeakEasy expects to complete the extensive review process and receive its NDL later this year with the total licencing process taking between six and nine months. Upon receipt, the Company intends to immediately begin the process of preparing for the anticipation of the legal market.
Founder Marc Geen states, “Agriculture has always been the core of SpeakEasy’s business and psilocybin production is not much different. Commercial mushroom production is very similar to cannabis production, especially considering both are controlled substances and likely will fall under a similar set of regulations. We are in a great position to be able to be at the forefront of the growing psilocybin market and also apply SpeakEasy’s farming knowledge to the production of magic mushrooms adding efficiency, high-quality production at an economical costs of production.”
Why SpeakEasy is Focused on the Psilocybin Market
Compelling evidence of the therapeutic benefits of psychedelic drugs appears in multiple scientific studies. Several clinical trials are underway in the United States and worldwide to investigate the therapeutic effects of psilocybin, the active component in the fungi known as “magic mushrooms.” There is new hope for treating debilitating disorders such as depression, anxiety, post-traumatic stress disorder, anorexia, obsessive-compulsive disorder, and addictions. Multiple efficacy studies going on around the world in areas that encompass life-disrupting psychiatric and neurological conditions such as major depressive disorder (MDD), addictions, and other mental illnesses. A successful outcome could completely upend treatment protocols(2).
About the Psychedelics Market
With projections of a $6.8 billion dollar industry by 2027, companies at the forefront of the psychedelic therapeutic drug market could see enormous benefits in the coming years. The psychedelic space’s promise is perhaps best illustrated by the sector’s largest-ever private financing round of $80 million for Compass Pathways (NASDAQ: CMPS), the first psychedelic company to IPO on the NASDAQ. Not to be outdone, Mind Med Inc., (OTCQB: MMEDF) is following suit; the Company has recently exceeded a $2 billion dollar valuation(4). A new market study of the U.S. psychedelic drug space forecasts that the market is projected to grow at 16.3%(2) . Factors such as increasing prevalence of depression and mental disorders drive that growth. The Data Bridge Market Research report notes that the market is expected to total approximately $6.8 billion by 2027, up from $2 billion in 2019(1).
About the Alternative Medicine Market
The global market size for alternative medicine is projected to reach USD $296.3 billion by 2027 exhibiting a CAGR of 19.9% according to a new report by Grand View Research Inc.(5) Psilocybin is likely to fall under the alternative medicine classification and be consumed directly as magic mushrooms or from extracted concentrated forms rather than being synthetically produced. The cannabis industry is very similar and has settled into the naturally produced form rather than synthetic forms of cannabinoids for many reasons. Health Canada has authorized use of psilocybin for clinical trials, Oregon state, Denver, Colorado and Vancouver, British Columbia are among many states, cities and provinces that have legalized or decriminalized the use of psilocybin all pointing towards the eventual acceptance and legal use of the drug.
Founder Marc Geen, “Today a huge number of patients take THC for a variety of ailments, these individuals are not picking up a synthetic version of the drug at their local drug store. THC is just another example of a global trend pushing for alternative medicine and natural solutions. Our goal at SpeakEasy will involve testing and cataloging different strains to standardize products and then start the education process to inform consumers. The process psilocybin has been following is familiar, many of the indicators of progress are just what we saw moving through cannabis legalization, I expect things to move rapidly in Canada as the roadmap has been laid out previously by the cannabis regulations.”
About SpeakEasy Cannabis Club Ltd.
SpeakEasy Cannabis Club Ltd. holds a cultivation, processing and sales licence issued by Health Canada under the Cannabis Act. SpeakEasy owns 290 acres of land in Rock Creek, British Columbia, and leverages five generations of farming experience in B.C. as well as its favourable location to grow and process high-quality cannabis products at low cost. SpeakEasy cultivates small batch, high quality craft cannabis at scale in a portion of its 63,200 square foot indoor cannabis complex and has completed its harvest of its 60-acre outdoor field. Total yearly production of cannabis flower and biomass is projected to be in excess of 70,000 kilograms per year once in full production.
On behalf of the Board of the Directors
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Forward Looking Statement
This news release contains statements that constitute “forward-looking statements.” Such forward looking statements involve known and unknown risks, uncertainties and other factors that may cause SpeakEasy’s actual results, performance or achievements, or developments in the industry to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects,” “plans,” “anticipates,” “believes,” “intends,” “estimates,” “projects,” “potential” and similar expressions, or that events or conditions “will,” “would,” “may,” “could” or “should” occur.
Forward-looking statements in this document include statements concerning SpeakEasy’s expectations concerning its receipt of a Narcotics Dealers License and the timing thereof; its expectations that the recreational use of psilocybin and related products will be legalized or decriminalized in Canada and elsewhere, its expectations and projections concerning market demand and potential market size for psilocybin and related products; its expectation that the psilocybin will be categorized as an alternative medicine, its expectations concerning the economic benefits of being an early participant in psilocybin industry, its expectations that it will be able to produce magic mushrooms and the efficiency and costs associated with such production; its intent to produce and sell high quality craft cannabis, its projections concerning total yearly production of cannabis flower and biomass and all other statements that are not statements of historical fact.
Although SpeakEasy believes the forward-looking information contained in this news release is reasonable based on information available on the date hereof, by their nature forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such statements.
Examples of such assumptions, risks and uncertainties include, without limitation, assumptions, risks and uncertainties associated with general economic conditions; COVID-19, adverse industry events; future legislative and regulatory developments involving cannabis; the Company’s ability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favorable terms; the cannabis and hemp industries and markets in Canada and generally; the demand for CBD distillate, cannabis and cannabis related products, the ability of SpeakEasy to implement its business strategies; competition; the ability of SpeakEasy to obtain and retain all applicable licences from Health Canada, including, but not limited to those required under the Cannabis Act and other assumptions, risks and uncertainties.
In addition, psilocybin is currently a Schedule III drug under the Controlled Drugs and Substances Act (Canada) and it is a criminal offence to possess substances under the Controlled Drugs and Substances Act (Canada) without a prescription or authorization. Health Canada has not approved psilocybin as a drug for any indication. SpeakEasy does not have any direct or indirect involvement with illegal selling, production, or distribution of psychedelic substances in jurisdictions in which it operates. While SpeakEasy believes psychedelic substances can be used to treat certain medical conditions, it does not advocate for the legalization of psychedelics substances for recreational use. SpeakEasy does not currently deal with psychedelic substances in any manner.
THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS NEWS RELEASE REPRESENTS THE EXPECTATIONS OF THE COMPANY AS OF THE DATE OF THIS NEWS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE THE COMPANY MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME EXCEPT AS REQUIRED IN ACCORDANCE WITH APPLICABLE LAWS.
The Canadian Securities Exchange nor its Regulation Services accepts responsibility for the adequacy or accuracy of this release.
(4)MindMed Announces 2020 Year-End Financial Results; Current Cash Balance of $161 million USD ($203 million CAD) to Support Drug Development Pipeline and Creation of Psychedelic Medicine Tech Platform – MindMed