Listing of a stock on a major exchange is often seen as a positive by investors but it may not always go to plan for the companies involved and that is what happened with the Lucy Scientific Discovery (NASDAQ:LSDI) or LSDI stock on Thursday.
The company, which is involved in the contract manufacturing of compounds meant for psychotropic and psychedelic therapies, was listed on the NASDAQ on Thursday. The stock performed poorly and slid by as much as 25% on the first day of trading.
Lucy Scientific Discovery
Company Name: Lucy Scientific Discovery
Ticker: LSDI
Exchange: NASDAQ
Website: https://www.lucyscientific.com
Lucy Scientific Discovery Summary:
Lucy Scientific Discovery Inc. researches develop, manufactures, and commercializes psychedelic products. It offers biological raw materials, crude extracts, psychotropic compounds, and active pharmaceutical ingredients (APIs). Lucy Scientific Discovery Inc. was formerly known as Hollyweed North Cannabis, Inc. The company was incorporated in 2017 and is based in Victoria, Canada.
Here are the top 3 catalysts for LSDI stock.
#1 LSDI Stock Falls In Debut Trading
The initial public offering made by the company on NASDAQ was worth as much as $7.5 million. LSDI stock opened trading at $4 a share but eventually slumped to $2.89 each before ending the day at $2.99 a share.
The company offered as many as 1.87 million shares in the initial public offering for $4 each. The underwriters for the offering had also been provided with a 45-day option for picking up, more shares in the company.
#2 Downsized IPO again
The sole book runner for the company is WestPark. In light of the poor performance on listing day, it is perhaps important for investors to keep in mind that back in December last year, the company had actually reduced the size of its IPO for LSDI stock.
Initially, the size of the IPO had been supposed to be $10 million but Lucy had decided to reduce it to $8 million.
#3 Moderate Industry Growth
While the performance on the listing day may come as a dampener for the company, its shareholders, and potential investors, it ought to be noted that Lucy is involved in an industry that is geared for growth.
As per research conducted by Future Market Insights, the psychotropic drugs market is expected to grow at a rate of 6% CAGR over the course of the period between 2022 and 2032. There is significant awareness now with regard to mental health conditions and the introduction of safe psychotropic treatments could well be the way forward in the coming years.
LSDI stock could be on your watchlist this month it is trading in the oversold zone.
Disclaimer
Small Cap Exclusive is owned and operated by King Tide Media, LLC, which is a US based corporation & has been compensated $350,000 from Lucy Scientific Discovery Inc. for profiling LSDI. We own ZERO shares in LSDI. Full Disclaimer
