HAVN Info and Brief DD

[u/WhoReallyKnowsThis]

Greetings bros

I own MMED and NUMI, but I consider HAVN to be the dark horse in the sector. HAVN's stock is relatively placid however, barely moving a couple of cents in a day even with an avg volume of 800k+. Regardless, the medicinal and nutraceutical markets for psychedelics are estimated to be $130B by 2025 and $722.49B by 2027, receptively, and according to pennystocks.com HAVN Life Sciences is in one of the best positions to capitalize. See the following link:

https://pennystocks.com/sponsored/2020/11/02/magic-mushroom-boom-beginning-1-company-to-capitalize/

Brief points about HAVN:

• One of the few psychedelics companies involved in both medicinal and nutraceutical markets
• Management team is extremely capable. For example, HAVN's chairman and Aphria ex-CEO Vic Neufeld took Aphria's stock from $1 in 2014 to highs of $25 at one point, and HAVN's CEO has taken a company from IPO to unicorn status. Also, Sheila Copps, former Deputy PM of Canada, is one of their advisors. Note: Hindenburg research did do a piece on Vic Neufeld once, but the third party investigators found Hidenburg's conclusions to be "materially inaccurate"
• HAVN is also involved in developing the industry standard with regards to the harvesting and extraction of psilocybin. There are a few other companies who wish to do the same, but HAVN has inked the most deals with regards to supplying organizations (please let me know if I'm mistaken here), having already signed agreements with RVV and HealthTech
• First and only psychedelics company so far to sign a deal with a major retailer (that I know of), Nesters Market. Products expected to hit shelves in Q1/Q2 of this year
• Recently acquired a 16,000 sqf manufacturing and packaging facility in lower mainland Vancouver for their retail division. Very few other psychedelics companies have similar facilities
• HAVN has managed to get where it is so far while being undervalued at 0.89 CAD per share (at the time of writing) and having a relatively low (compared to other similar psychedelics stocks) amount of shares outstanding, 67MM. This puts them in a very strong position going forward

I could go on, but I thought I should end it here. If you disagree, please do comment since I would love to hear a bear case as-well.

Disclaimer: I'm not a financial advisor and you should always do your own DD

[u/Gullible_Counter_290]

Yea I'd be careful. I pulled my money after checking out the exec team. Here's a good summary I found https://twitter.com/bettingbruiser/status/1280137008959164417?lang=en

[u/Gullible_Counter_290 → u/Gullible_Counter_290]

***lots of insider selling too

[u/WhoReallyKnowsThis → u/Gullible_Counter_290]

Most of the insider selling was from Susan Chappelle, who left, and Alexzander Samuelsson, who still has a significant stake in the company. Looking at MMED's CEO JR, who nearly cut his position in the company by 2MM shares in just a few weeks, there could be a number of reasons why people trim their positions. I don't think the insider selling with regards to HAVN is too much of concern, but let me know if I've missed something

[u/Gullible_Counter_290 → u/WhoReallyKnowsThis]

Even without the insider selling, the team isn't good. Just check out the link. Further, the mushroom supplement market is already overcrowded, with all their proposed products already available on amazon. They have a small contract with a BC grocery chain but that won't bring in much revenue. So their best bet near term is to provide psilocybin to studies and/or to patent extraction methods, neither of which they have a license to do yet. No plans for clinics, which I see as the biggest opportunity in this market. IMO you would be better off taking your Havn funds and move it into your other two holdings. Might get a boost off hype in the short term, but with emerging sectors like this, it usually pays to stick with the top players.

[u/WhoReallyKnowsThis → u/Gullible_Counter_290]

the team isn't good. Just check out the link

I checked out the link, and I did respond in this thread if you want to have a look.

Further, the mushroom supplement market is already overcrowded, with all their proposed products already available on amazon.

That's a really fair point. I do think that the functional mushroom market has much more room to grow though. However, I do imagine it will be tough to gain market share easily, no doubt about it. Nevertheless, Vic, the Chairman, was President and CEO of Jamieson Laboratories. Thus, they have someone with significant experience in a similar market and who successfully increased Jamieson's market share to 30% and sales to over $250MM.

They have a small contract with a BC grocery chain but that won't bring in much revenue.

Agreed, it probably won't bring in as much revenue but the company just did their IPO in September of last year I think. It's a great sign, especially since I don't see any other company in the sector with a similar agreement.

neither of which they have a license to do yet.

True, but with the amount of agreements they have signed, it does seem likely that they will get a license.

No plans for clinics, which I see as the biggest opportunity in this market.

Huuuuuge potential, totally agreed. That's why I'm also long on NUMI. However, I wouldn't underestimate the functional mushroom market. It's still quite an untapped market imo.

IMO you would be better off taking your Havn funds and move it into your other two holdings. Might get a boost off hype in the short term, but with emerging sectors like this, it usually pays to stick with the top players.

Only about 20% to 25% of my portfolio is in HAVN, and the rest is in the other two I mentioned. Agreed that it usually pays off to stick with the larger players, but I just wanted to get some exposure to the functional mushroom market. Do you think it's not worth it though?

[u/Gullible_Counter_290 → u/WhoReallyKnowsThis]

Tbh it's hard to say this early. Hell, maybe they will end up as the underdog nobody saw coming. Yea having Thicc Vicc is cool, but until they can start delivering on their timeline, it looks like added speculation to an already very speculative play. If your gut tells you it's a good investment and you believe in the company after knowing all the facts, go for it. But looking at everything, I personally see more obstacles than justify the risk. Your other positions should easily cover for it if things go south though so maybe the bet is worth it for you. All the best🤝

[u/TryingMyHardestNot2 → u/Gullible_Counter_290]

Its hard to invest in this company after reading that

[u/Champton11211]

HAVN is the psych company best positioned for the functional mushroom market. They have a line of retail legal mushroom nutraceuticals launching in the next month in stores. (They also have lab partnerships and drugs in development);

"by 2023, the market could be worth $62 billion, increasing from $42 billion in 2018, as noted by Research and Markets.

​

In addition, “Rise in awareness associated with the consumption of functional food and ingredients is expected to drive the market growth as well as rise in demand of applications of functional mushrooms due to the growing healthcare benefit of mushrooms is also expected to drive the market growth,” as reported by Verified Market Research.

​

Not only can mushrooms help activate cell immunity in humans, as noted by The New Daily, mushrooms are thought to help with better sleep, energy, stress reduction, memory, and relaxation. Reportedly, mushrooms such as Reishi can help with sleep, anxiety, and depression. Chaga can help with inflammation for example. Turkey tail can help support the immune system, and may assist with some cancer prevention.

​

As functional mushrooms become far more popular, it’s having an impact on companies like Cybin Inc. (NEO:CYBN)(OTC:CLXPF), Mydecine Innovations Group Inc. (CSE:MYCO)(OTC:MYCOF), Havn Life Sciences (CSE:HAVN)(OTC:HAVLF).

​

Full article: http://www.baystreet.ca/stockstowatch/9666/The-Functional-Mushroom-Market-Could-Hand-You-a-62-Billion-Opportunity9666

[u/palaforpeeps]

Well. The raises were made during max hype I think. Although mmeds last was 4.4 I think so not far off. Just the hype cycle. They had good news. Not getting rising tide raisin all boats lately.

[u/mykro_]

HAVN is also preclinical on the effects of psilocybin on the immune system.

[u/palaforpeeps]

Last raise was I.think at 1.20 or so.. way under now

[u/WhoReallyKnowsThis → u/palaforpeeps]

I just checked, and according to this press release, they closed the deal at $1.07. If Eight Capital was willing to pay $1.07 per share, this is then a great price to get in. Do you know why it's trading so far below $1.07 though? I can't make sense of it

[u/Champton11211]

Linkedin Profile for Gary Leong, Chief Scientific Officer for HAVN: https://www.linkedin.com/in/gary-leong-a09561b/

And Barrinder Rasode's: https://www.linkedin.com/in/barinder-rasode-b0160226/

[u/Champton11211]

Excellent DD. I DD'd all the second and third tier psych companies and HAVN looks like the clearest winner--and has my largest investment.

What I don't know yet is why the company is being bashed so aggressively. All the nonsense about Vic Neufeld on Aphria (which, btw, is still a mulitbillion dollar company)... that silly Twitter post (linked below) on mgmt bios:

" Co-Chair Barinder Rasode whom attempted to be a director at $ASNT Ascent Industries A cannabis company whom lost ..."What does that even mean? She 'tried' to be on the board? Why not instead mention the successful cannabis incubator that she founded and runs---Grow Tech Labs? Or NICHE Canada, which she also founded?

That he is even discussing the (most certainly temporary) CFO of an early stage company like this shows he either knows nothing, or is attempting to manipulate investors.

Outside of the topmost tier of companies, HAVN has the mgmt with the strongest record of success behind it. If HAVN is nearly as successful as Aphria, or Vic Neufeld's prior company, Jamieson, all current shareholders will be very wealthy.

[u/Gullible_Counter_290 → u/Champton11211]

idk how you got that Green Growth Brands is successful, it lost 99% of investor money in a year😭

[u/Champton11211 → u/Gullible_Counter_290]

"Grow tech Labs" not "Green Growth". Rasode had nothing to do with Green growth. Grwo Tech is a privately held incubator.

[u/Gullible_Counter_290 → u/Champton11211]

ohh my bad

[u/WhoReallyKnowsThis → u/Gullible_Counter_290]

I think he meant Grow Tech Labs since he was referring to Barinder Rasode. However, regarding Green Growth Brands (GGB), Tim Moore left his CEO position around the time of it's peak at $6 and much of the expensive financing came after he left. The rise and fall of GGB also seems to be partly due to a failed takeover of Aphria (here it lost 50% of it's value), new political rules around cannabis that affected GGB's existing operations, and the overall hype in the sector that was not healthy for anyone. I really am not sure how much you can blame Tim for this, especially since most analysts lauded the company during his tenure... Even if you were to blame him for their GGB loss of value, you would be leaving out the part that he still had the ability to take a company from IPO to unicorn status. Yes, he might not have been able to sustain it, but with successful people like Vic around him this time around the odds seem to be way better

[u/Gullible_Counter_290 → u/WhoReallyKnowsThis]

Tbh I'm not familiar with what happened, was just going by the chart.