A decade or two ago, few people thought that medical marijuana would be quickly adopted, yet it is now legal in 33 U.S. states and the District of Columbia. In a similar fashion, the pendulum appears to be swinging in favor of psychedelics. In 2019, the U.S. Food and Drug Administration (FDA) approved the use of the nasal spray esketamine in conjunction with an oral antidepressant to treat adults suffering from depression when other medications have not worked. It is the first psychedelic drug to receive FDA approval.
Today, clinical trials are underway to research the ability of psychedelics to combat issues as wide ranging as PTSD, alcoholism and drug addiction, depression, headaches, eating disorders and tobacco addiction. Last year, Johns Hopkins University opened the Center for Psychedelic and Consciousness Research. At the state level, psilocybin mushrooms are now on track to be legal in Oregon, the first state to do so.
Against the backdrop of this quickly moving situation, Delic Corp. (DELC:CSE) aims to be in the center of the psychedelic revolution. The small-cap company began trading on the Canadian Securities Exchange in November under the ticker DELC.
Founded by Jackee and Matt Stang, who both held high positions at High Times, Jackee as VP of programming and Matt as chief revenue officer, Delic aims to identify "fully legal opportunities to scale under our big tent of resources and reach."
"We founded Delic two years ago when we saw a tipping point coming for psychedelics," Matt Stang told Streetwise Reports. "We wanted to create something to help mainstream psychedelic wellness."
Jackee is the CEO and founder, while Matt is the co-founder and adviser.
Delic sees itself as an umbrella media platform. It currently has three subsidiary companies: a revenue generating e-commerce lifestyle brand named "The Delic"; a free public education platform providing psychedelic guides, news and culture known as "Reality Sandwich" that offers more than 5,000 articles and other content; and "Meet Delic," a biannual psychedelic wellness summit with the first set for Los Angeles in May 2021.
"About 300,000 people a month are coming to the Reality Sandwich website for news and information about psychedelics," Stang said. "Meet Delic will be the largest psychedelic conference in the world. And we've been holding online web events drawing thousands of people to learn more about different aspects of psychedelic lifestyle."
Delic is also in the process of putting out a new site built around psychedelic wellness. "It will be a place to find safe and legal psychedelic wellness experiences, such as ketamine clinics," Stang said.
Stang explained that the model was to go public at a very low valuation—the firm came out at a $11 million post-money valuation. "Now we will utilize the capital we've raised and the shares that we have inside of the company to buy up some really great operators across the psychedelic world, and use our funnel of people interested in psychedelics to help drive traffic, brand recognition and revenue," he said.
"When a black or gray industry goes white, people don't know who to trust, or what to look to. And when you own a major media brand in the space, you help build and drive value in those brands. We have a giant platform from which to help define what is best in class," Stang explained.
Delic has pulled in experienced executives for its board of directors, including Paul Rosen, CEO of 1933 Industries Inc. and co-founder of PharmaCan Capital Corp., now known as The Cronos Group, and Kraig Fox, former CEO of High Times Holding Corp.
"Our unique access to the best entrepreneurs in the space, the newest technology, and unmatched ability to curate popular culture allows us to offer mainstream solutions to the emerging psychedelic industry players," Stang said.
Delic has approximately 51 million shares issued and outstanding. Insiders have a three-year escrow and hold around 40% of the shares.
[NLINSERT]Disclosure:
1) Patrice Fusillo compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
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