Global Trac Solutions, Inc's (OTCMKTS: PSYC) Psychedelic Spotlight, the industry-leading website for all things "psychedelics," reached another milestone. This time, it will add a new revenue stream to PSYC after the company launched its paid media partnership services to monetize its flagship platform from companies in the multi-billion dollar medicinal psychedelics sector.
And while the news is excellent, it's expected to be only the first of several near-term revenue-generating opportunities that PSYC intends to explore in the back half of this year. That's great news for investors.
Moreover, by targeting an ever-increasing number of companies, researchers, developers, and patients in the sector, PSYC expects no shortage of opportunities from clients also exploiting massive opportunities in the medicinal psychedelics space. And that means its current $0.01 share price may soon be extinct. In fact, it already should be. Why?
Because no other company in the sector is as well-positioned to create shareholder value from this emerging sector than Global Trac Solutions. And more than optimally positioned, they are timely, providing them a substantial competitive advantage over companies trying to enter its space. Moreover, with non-competing companies entering the sector at a record pace combined with a receptive political landscape acknowledging the benefits of medicinal psychedelic treatments, PSYC is indeed positioned to maximize its revenue-generating opportunities from several verticals.
A Mushrooming Psychedelics Sector
And that's just this year. Next year, expect the company to accelerate its growth and cement its stature in the sector as the best-in-class source for information about a transformational industry. By the way, growth at PSYC is already impressive.
In June, the company reported record user growth for Psychedelic Spotlight, topping a sequential double-digit percentage increase from the month before. To those that know the site, that's not surprising. Psychedelic Spotlight has established a trusted reputation within the sector in relatively short order, becoming a valued voice for the many different companies, advocates, and individuals involved in the industry.
However, while the website's growth is not surprising, the stock price is. And despite the markets being a discounting mechanism, at $0.01 per share, the stock is more than discounted; it's being wholesaled. That's a massive disconnect considering operational momentum and record-setting user growth for its industry platform. Thus, while current shareholders may be frustrated at the recent churning, new investors may be getting rock bottom prices in a company already penetrating a potentially transformational medical treatment sector.
Opportunity Early Into An Emerging Sector
Better still, PSYC investors get more than a ground-floor investment opportunity in a massive industry. They get a position in a company in hyper-growth mode, supported by record-setting active user growth of its Psychedelic Spotlight platform. And that's referencing July numbers. Moving forward, that user base is expected to surge.
Deservedly so. Psychedelic Spotlight is the most comprehensive source of information in the medicinal psychedelics industry. In fact, the site is so well received from having a thorough knowledge and understanding of the industry that it has become the premier and go-to source of information about alternative therapeutics that may considerably alter the treatment landscape.
And while Psychedelic Spotlight reigns as a leader in the information space, its monetization by PSYC is indeed a motivating factor for investment consideration. Moreover, in an industry expecting more than 250% growth to $7 billion by 2027, the more excellent news is that it's likely only the first of many steps in PSYC's strategy to help usher in a new industry and create shareholder value for its investors.
Monetizing Industry-Leading Psychedelic Spotlight
Even better, PSYC's move to monetize its website asset follows increased financial and collaborative investment into other companies in the space. Thus, its sum of the parts alone makes PSYC stock extremely attractive, even if levels were significantly higher than current values. Still, credit PSYC for making the right moves at the right time.
And those "right moves" could help PSYC create a revenue-generating juggernaut by capitalizing on current partnerships and a changing political climate. Helping that cause is the recent passing of the California Senate bill, SB 519, which would permit medicinal psychedelics to treat certain medical conditions.
While the bill still faces debate in the state's house, its passage through the senate is significant. So much so that some analysts think it's the first step to nationwide reform, allowing medicinal psychedelics to soon blaze a trail similar to that of CBD for eventual mainstream adoption. That can certainly happen. After all, just as CBD-based therapeutics won over the masses by proving their worth, medicinal psychedelics researchers are also publishing data showing their potential to treat mental, physical, and emotional indications.
Hence, mainstream adoption could happen sooner than most people think.
Parallels To Growth Of CBD-Based Therapies
Many think that's already happening. And these same industry insiders and policymakers credit the speed at which CBD-based therapeutics took over the treatment landscape for creating a path and pace for medicinal psychedelics to follow.
Remember, CBD-based therapies essentially went from zero to billions in sales in less than a decade. Still, it wasn't an easy road to get these products to Main Street USA. Instead, it took a measured approach relying on volumes of data showing its benefits to treat numerous medical conditions. The researchers and proponents of medicinal psychedelics are following a similar disciplined path toward approval.
And Psychedelic Spotlight is playing an integral part in getting the correct information to the public. In fact, through one easy click of the mouse, website users get an abundance of media content presented in podcasts, videos, industry presentations, interviews, and article formats. By doing so, Psychedelic Spotlight is the undisputed one-stop shop for relevant, transparent, and accurate information about the sector. And as noted, user growth is setting monthly records.
Still, from an investor's perspective, as valuable as Psychedelic Spotlight is, PSYC's other interests have intrinsic value as well. And through those assets, PSYC offers a diversified vehicle to get investment exposure in the broader medicinal psychedelics sector.
Creating Value From Investment And Collaboration
While much of the above referenced the contribution of Psychedelic Spotlight to PSYC's long-term value proposition, investors would be wise to recognize the untapped value in two other portfolio assets. Although different in scope, each provides additional leverage into the sector. Better still, they help to diversify the PSYC investment by targeting different opportunities.
First, its collaboration with The Conscious Fund is helping to advance a platform for "all things" psychedelic with an intense focus on research. In particular, they show the benefits of alternative treatments utilizing plant-based therapeutics derived from ketamine, mushrooms, and MDMA. Its primary message intends to erase the stigma associated with these drugs and highlight the benefits they offer for numerous patient health issues. Value is expected to accrue from mutually created intellectual property.
Its other interest is a 15% ownership stake in PsycheDev Inc., a company offering guided trips programs and tools to facilitate growth by helping people better understand themselves and others. It's an innovative approach to treatment that creates an experience that develops a patient's psyche from its everyday ways to a deeper inner world.
Its intent is to help clients achieve an experience that expands the mind by guiding them through intention setting, meditation, learning, contemplation, and questioning. Innovative for sure. And demand for its services is rising. Notably, PSYC announced its intent to increase its ownership stake to 20% in the coming weeks.
Merging Into A $7 Billion Industry By 2027
Combining its strengths and interests, PSYC looks to be in its best position ever to maximize opportunities created by a medicinal psychedelics industry expected to surge from roughly $2 billion today to upwards of $7 billion by 2027.
Moreover, as Psychedelic Spotlight continues to cement its position as the most transparent, reliable, and up-to-date website for all things psychedelic, the value proposition presented in PSYC stock becomes almost too great to ignore. Frankly, at $0.01, it already is.
But don't think investors aren't paying attention. They are. Volume is picking up, and the share price has traded higher by double-digit percentages intraday in June and July. Thus, while the short-term churning may be frustrating long time investors, the current share price may be presenting potentially life-changing returns for others. Still, in the long run, it's expected that all shareholders will be winners.
Best of all, PSYC may be creating a perfect storm of opportunity. They own an industry-leading website, have financial and collaborative interests in two independent sector companies, and can leverage industry-wide relationships to accelerate growth in the back half of this year. And as the industry grows, which it will, PSYC is better positioned than any to reap the rewards by being early to the emerging industry opportunities.
The bottom line is simple to understand. At $0.01, PSYC offers a compelling ground floor opportunity to purchase a stake in an industry that can transform parts of the medical treatment landscape. As noted, it's an opportunity too big to ignore.
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