Could This Be the Most Undervalued(1) Psy-che-delics Company?(5)
See Why Levitee Labs Has a Potential $100B Market Opportunity(5) On High-Alert
Levitee Labs is a lucrative medical frontier that has the potential to serve an improperly addressed and underserved market.
Mental Health, Substance Use, and Chronic Pain crises have not been appropriately addressed. To the tune that there has been nearly $8.5 trillion lost in economic output due to mental health, substance use, and chronic pain disorders.(1)
The U.S. gets all this grief for their healthcare and mental health crises, but it’s truly a disaster in Canada. 1 in 3 Canadians meet the criteria for at least one mental or substance use disorder in their lifetime, and 1 in 4 Canadians aged 15 or older live with chronic pain.(1)
The most distressing part is that many of these people lack access to proper treatments and services. If Canada’s universal healthcare is so great, why in the world is this sector only receiving 7% of health care dollars?(1)
No wonder Canadian consumption of antidepressants is the third-highest among developed countries.(1) Meanwhile, during the first 6-months of the global health predicament, Canada suffered a 74% increase in opioid-related deaths.(1)
Transformative innovation coming to the mental health, addiction, and chronic pain spaces is desperately overdue. Luckily, by blending traditional health systems with the new frontier of value-based health solutions, including psy-che-delic medicines and digitization, for better patient outcomes, Levitee Labs Canada CSE: (LVT) U.S. OTC: (LVTTF) could be the most revolutionary, tightly held, and lean company in the sector.
80% of patients describe their psy-che-delic experience as one of the “most personally meaningful and spiritually significant experiences of their life.”(1) The actual root cause of symptoms is being addressed for the first time instead of “band-aids” that may or may not work.
The best part? With a one-of-a-kind business model, Levitee Labs Canada CSE: (LVT) U.S. OTC: (LVTTF) may finally make these treatments more accessible for the long-suffering Canadian public and soon to the US.
With a transformative M&A strategy, Levitee may be the most innovative public company to disrupt the space, the most undervalued,(1) and first-ever to be positive.(5)
No wonder this potential $100B market(4) opportunity is on notice.
But Its Valuation and Cash Flow Are Mouth-Watering
On July 20, 2021, Levitee Labs received approval to publicly trade on the CSE.(1)
According to data from Yahoo! Finance, Levitee began actively trading on the CSE on July 21, 2021(7), and the United States OTC on August 12, 2021.(8)
So while the stock thus far has not done much yet, this is truly an early-stage, ground floor play in one of the most explosive sectors in the world today. Consider what some competitors have done since they’ve gone public:
Field Trip Health: Opened at CAD $2.20 a share on October 9, 2020. Ran approximately 140% to a close of CAD $5.28 on September 1, 2021.(9)
Numinus Wellness: Opened at CAD $1.00 on May 20, 2020. Ran as much as 145% to its Dec 15, 2020 high of CAD $2.45.(10)
Cybin: Opened at CAD $0.990 on November 10, 2020. Ran all the way 229.29% to its September 1, 2021 close of roughly CAD $3.26.(11)
The difference between Levitee and companies such as these? It could be the most fundamentally sound way to play this explosive sector yet.
First of all, Levitee Labs may be significantly undervalued on an Enterprise Value basis compared to many of its peers beyond just Field Trip, Numinus, and Cybin. As of August 6th, 2021, Levitee had an Enterprise Value (EV) of $33.3M vs. its peer group trading at a mean of over $300M.(1)
What makes this even more striking is Levitee is leveraging a vertically integrated M&A model. This keeps it on track to be the first psy-che-delics company to enter the market with significant revenue and cash flow.(2)
It’s simple. Levitee’s differentiated business model generates positive cash flow. At the same time, many of its peers have a long and uncertain path to revenue and profitability. Furthermore, Levitee’s acquisition of ACT Medical, an asset consisting of 5 clinics that have conducted over 35,000 patient visits during the past 12 months, ensures further separation from its peers and encourages R&D efforts.
In particular, R&D efforts can be accomplished with Levitee’s platform through the integration of clinical trials to its current patient population.
The company anticipates the following:(1)
- $18.8M in run-rate revenue by the end of 2021
- Anticipated revenue mix: 15% from internally developed assets, 85% from acquisition targets
- Acquisition pipeline of over $500M in revenue
With a tight share structure, including approximately 96% of all outstanding shares possessing selling restrictions as of September 2, 2021, and approximately ~53% insider ownership, the sky could genuinely be the limit for this early-stage stock.(5)
Levitee Labs Inc. is an emerging multidisciplinary integrated wellness company transforming the traditional landscape of mental health, pain management, and addiction treatments by including evidence-based alternative medicines and psy-che-delic therapy.
The core objective of Levitee Labs is a progressive push towards the introduction of novel treatment modalities in the mental health and addiction space, with a primary focus on the integration of evidence-based psy-che-delic medicines and therapies. This model addresses the ineffectiveness of current clinical treatments for mental health and addiction patients, particularly in underserved populations.
Levitee has a triangular strategy to make this a reality.
Levitee has an established portfolio of positive cash flow-generating wellness assets through an accretive M&A regimen. Through integrations within this M&A model, Levitee is establishing a platform that aims to bridge traditional mental health, pain management, and addiction treatments with psy-che-delic applications.
The profitable integrated wellness platform aims to improve access to and quality of value-based patient care. It also aims to serve as a platform for psy-che-delic medicine research and psy-che-delic medicine compounding in a sustainable and scalable manner.
Levitee Labs, thus far, has made two significant acquisitions. It first acquired ACT Medical Centres, an operator of 5 mental health and addiction clinics + 3 specialized pharmacies.(1) It then acquired Earth Circle Organics, an omnichannel nutraceutical e-commerce platform with 3 brands: Earth Circle Organics, Earth Shift, and Ojio.(1)
Beyond this, Levitee internally developed a mush-room feedstock manufacturing facility, Sporeo, and a nutraceuticals line, MONKE Nutraceuticals.(3) Levitee Labs possesses intellectual property in both of these ventures. It’s projected that these two divisions alone could generate approximately 23% of the company’s total revenue, with 77% being produced through their most recent and future acquisitions going forward.(5)
ACT Medical Centres
There are definitely countless reasons why Levitee acquired this platform for $5.45M.(1)
Not only did this acquisition position Levitee with 5 Addiction Clinics, 3 Specialized Pharmacies, and 1 Proprietary Technology Platform.(1) It also gave Levitee potentially an additional $7.5M in revenue, along with positioning as the largest non-government provider of addiction services in Alberta.(1)
Additionally, the acquisition:(1)
- Allows for the future delivery of psy-che-delic medicine to addiction and chronic pain patients in the Alberta market.
- Provides Levitee with a platform for future research opportunities.
- Includes option of delivery of digital clinics services to patients.
As Levitee’s first acquisition, the company plans to use this as a base for future clinic acquisitions.
Levitee, with ACT, plans to expand its offerings by integrating:(1)
It also plans to leverage digital services and dr-ug delivery capabilities to aggressively expand clinical services into new markets via a proprietary addiction platform. Already, through this platform, 70% of current patient visits are conducted.(1)
Levitee has three primary objectives to accelerate the growth of ACT:(1)
- Integration of psy-che-delic therapies into the current portfolio of offerings to addiction patients.
- Research into psy-che-delic medicine and trials of novel psy-che-delic compounds.
- Bulk dr-ug purchasing contract to reduce dr-ug costs while increasing margins.
The best part of ACT Medical Centres is that it reflects the overall company make-up. Undervalued in terms of enterprise value, significant revenue, and positive cash flow. Just look at how ACT stacks up to Field Trip Health’s clinics, for example. Field Trip Health is a larger company than Levitee, and also owns and operates clinics for psy-che-delic therapies within North America.
So while Field Trip’s clinics have an enterprise value of nearly $176.5M larger than that of ACT Medical Centres, ACT has higher LTM. In contrast, Field Trip has significant losses, and 0 pharmacies.(1)
Earth Circle Organics
Earth Circle Organics is an omnichannel nutraceutical e-commerce platform, encompassing 3 brands (Earth Circle Organics, Earth Shift, and Ojio).
As Levitee Labsʼ most recent acquisition, this is a platform that’s comparable to Laird Superfoods. But, in keeping with Levitee’s typical shrewd methodology, while Laird is currently trading at 10x revenue, Earth Circle Organics is being acquired for 1.4x revenue.(1)
It gets better too. Earth Circle has seen 300% growth in the past two years and purchasing for 3.6x cash flow and earnouts.(1) It also saw $2.4 million in revenue with $750,000 in cash flow. All of this was achieved with 0 digital marketing, highlighting tremendous upside potential when integrated into Levitee’s platform.(1)
The main growth lever here is marketing.
- Levitee anticipates increasing marketing expenses while reducing merchant fees could result in over $2M in cash flow by 2025.
- Levitee has already increased revenues by 30% since acquisition through synergies.
- Solidifying the supply chain could realize cost synergies.
- Using multiple ingredients to quickly produce in-demand products should allow for a quicker path to market launch for products.
Earth Circle Organics is first in line with Levitee Labsʼ Nutraceutical Roll-Up Strategy. As this venture accelerates, Levitee plans to continue eyeing:(1)
- Brands with a brick & mortar presence, but little to no direct marketing expenditure and a low eCommerce footprint.
- Brands at the beginning of a growth curve, with proprietary products, high barriers to entry, high search volume, but low sales, and few competitors.
- Decentralizing operations potentially resulting in greater human capital efficiencies.
Supplemented with a robust capital allocation strategy, Levitee also aims to acquire brands with loyal customer bases at a discount. All to integrate them into its greater eCommerce family and then accelerate their growth with its centralized marketing hub.(1)
Levitee has an LOI to acquire a late-stage applicant for a Health Canada sanctioned Controlled Dr-ugs and Substances Dealer’s License.(1) This could allow Levitee Labs access to a treasure chest worth of compounds and provisions.
Levitee’s Sporeo Supply facility produces the first commercial-grade and tested offering of sterilized spawn and sterilized substrate. It’s filling some serious pain points in the current market for mush-room feedstock for psy-che-delic and functional mushr-ooms. This is a market that is considerably fragmented with little access to standardized and commercially viable growth mediums. Current mediums are also untested and prone to contamination.
Sporeo removes the barrier of entry for mush-room cultivators. It centralizes the sterilization processes and offers a tested and packaged product for various operational scales. Currently, Sporeo can potentially sterilize over half a million pounds of growth medium per month.(1)
Sporeo also provides immediate access to retail markets through a mass distribution agreement with My Green Planet.(1) This arrangement ramps up to a minimum order size of 75,000 bags of sterilized spawn and sterilized substrate per month after a six-month grace period.
Based on current orders, projected revenue could be roughly $1.2M per month.(1) However, this could only be the beginning for Sporero. In addition to the massive distribution of spawn and substrate, Sporeo Supply aims to standardize the future of mush-room cultivation feedstock. These R&D efforts could set the stage for the standardization of the manufacturing practices for future psi-lo-cybin production.
MONKE Nutraceuticals specializes in developing and distributing premium functional mush-room supplements to help consumers thrive by elevating their minds and bodies. The product line is set to have a strong footprint in the functional mush-room and nutraceutical product markets thanks to being formulated with the highest grade ingredients and testing integrity possible.
It has also received its Health Canada product licenses.(2) This means that the wholly-owned subsidiary can engage sales of its manufactured products in Canada, and therapeutic indications of the product ingredients are proven.
The Top Reasons Levitee Labs Canada CSE: (LVT) U.S. OTC: (LVTTF) Could Be The Top Psy-che-delics Play
Executive Team and Directors
Chief Executive Officer, Co-founder
Pouya is an experienced financier and entrepreneur with over 10 years in the financial markets, primarily in investment banking and venture capital. Involved in over 35 transactions ranging from $1M to greater than $50M.
Ken Osborne, CFA
Head of M&A, Co-founder
Ken is a capital markets professional with diverse experience in both public and private markets, covering over 20 capital raises and $500M in M&A activity.
Chief Operations Officer, Co-founder
Kelly has over 10 years of experience in entrepreneurship and operations. He has previous experience as a successful founder, investor, and CEO, having owned and operated several private and public companies.
Executive Vice President, Co-founder
Marc is a finance professional with over 10 years of experience in financial services and banking. With a critical competency in building and managing teams, Marc has scaled multiple businesses from start-up to over 7 figures.
Mason M. Darabi
Chief Financial Officer
Mason is an experienced CPA with a long history of working in various accounting roles in Canadian accounting firms, including MNP, Imperial Oil, RSM Canada, and PwC. In his most recent role, Mason led the Ag Data deal from an idea to a successful initiative at the national level for MNP LLP.
Dr. Fady Hannah- Shmouni, MD FRCPC
Chief Medical & Scientific Officer, President of Clinics
Dr. Hannah-Shmouni is a clinician investigator in neuroendocrinology and genetics who specializes in the stress system. He completed his clinical training in internal medicine at Yale-New Haven Medical Center Program and endocrinology at the National Institutes of Health (NIH). He is also a fellow with the Royal College of Physicians and Surgeons of Canada and has authored over 100 peer-reviewed publications.
Directors & Advisors
Justin is co-owner of the largest chain of privately owned hydroponic retail shops in Canada. He co-founded a group of companies that manufacture and distribute hy-dro-ponic equipment. He is also a frequent contributor to Growing Exposed, the leading video series on can-na-bis cultivation. Justin specializes in supply chain management, distribution networking, and procurement.
Stephanie Wilmott PCQI/IRCA
Stephanie is a specialist for compliance and certification, GMP/GPP/GACP governance, and compliance for cannabis producers/processors license applications. She has now attained Lead EU GMP and ISO 9001-2015 auditor certification and brings a wealth of regulatory and compliance expertise.
Capital Markets Advisor
With over 25 years of experience in capital markets, Lowell has extensive experience in strategic business development. Most recently, Lowell was Vice President of Business Development for a Canadian-based asset manager. Previously, he held senior sales roles at the Canadian division of Bank of America Merrill Lynch, Scotia Capital, and Scotia McLeod.
Paul Kroeger has studied mush-rooms for over thirty-five years and currently consults for the BC Centre for Disease Control. He is considered a leading expert in identifying mush-rooms and the founder of the Vancouver Mycological Society.
Yarrow (aka Herbal Jedi) is a second-generation Clinical and Master Herbalist, educator, and innovator in the Canadian health-food industry. Professionally, he is an international speaker, co-founder, and formulator of the Harmonic Arts Botanical Dispensary, the Wild Rose College of Natural Healing director, and creator of the Herbal Jedi YouTube Channel (150,000 subscribers).
Dr. Brent Hogarth
Dr. Brent Hogarth is a Sport and Clinical Psychologist. He is an expert in training flow-state, mindfulness, and self-control for both sport and corporate athletes. His expertise includes working with Olympic and professional athletes, serial entrepreneurs, members of the USA military, computer engineers, authors, hedge fund managers, and more.
Source 1: https://biotechstocktrends.com/wp-content/uploads/sites/87/2021/09/Levitee-Labs-Investor-Presentation-V10.16.pdf
Source 2: https://bit.ly/3BFAsyx
Source 3: https://www.linkedin.com/company/levitee-labs/?originalSubdomain=ca
Source 4: https://bit.ly/3jAEyl8
Source 5: https://www.paradigmresearch.ca/campaigns/view-campaign/_EBK8YPdj5RgtSrwaXVLic94elcdskz32v9vDEzbNNeObNSUo7WAYjoT07f1ZVKVB1B0u7S19PL8SM9HaonBOE7x61s6Legp
Source 6: https://finance.yahoo.com/news/mushroom-company-levitee-labs-public-192947496.html
Source 7: https://finance.yahoo.com/quote/LVT.CN/history?p=LVT.CN
Source 8: https://finance.yahoo.com/quote/LVTTF/history?p=LVTTF
Source 9: https://finance.yahoo.com/quote/FTRP/history?p=FTRP
Source 10: https://finance.yahoo.com/quote/NUMI.V/history?period1=1589932800&period2=1630540800&interval=1d&filter=history&frequency=1d&includeAdjustedClose=true
Source 11: https://finance.yahoo.com/quote/CYBN.NE/history?p=CYBN.NE
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Address: 800 West Pender Street Suite 215 Vancouver V6C 2V6 CA
Phone: +1 800 465-8640
Levitee Labs is a multidisciplinary integrative wellness company that’s redefining mental healthcare through a preventative, restorative, and transformative approach that includes evidence-based alternative medicines and novel psychedelic therapies.
Through a vertically integrated and disciplined M&A model, our core objective is a progressive push towards the introduction of novel treatment modalities, with a key focus on the integration of evidence-based psychedelic medicines and therapies. This model addresses the burden of inefficiencies prevalent within current clinical treatments, particularly those available to underserved patient populations.