Atai Life Sciences (NASDAQ: ATAI) will soon go public, and it’s one of the most anticipated IPOs of the year.
The Peter Thiel-backed healthcare and psychedelics company, which has already raised $362 million from private investors, is about to go public, raising $100 million through its IPO.
Atai’s focus is on investing and acquiring psychedelics companies and healthcare companies that are working directly with psychedelics companies.
Some of these companies are private and already running clinical trials, while others are public.
You would be wise to focus on the latter in anticipation of the atai IPO.
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If the price is right, I would absolutely recommend buying shares of atai when it goes public.
However, the best way to play the atai IPO is not by directly investing in the company itself but rather in the lesser-known public companies atai has already invested in.
These companies aren’t on Wall Street’s radar the way atai is. In addition, some of these companies are trading at tremendous discounts that won’t likely be so cheap after atai goes public.
One of those companies is Bionomics (OTCBB: BNOEF), which is a clinical-stage biopharmaceutical company that recently partnered with EmpathBio.
EmpathBio is a biotech player that’s developing psychedelic medicine derivatives in conjunction with digital therapeutics to deliver treatments for PTSD.
You’ll be hard-pressed to find anyone else who knows about this company right now. But EmpathBio is a subsidiary of atai. Make no mistake: When atai goes public, Bionomics should get a very nice bump because of its deal with EmpathBio.
Another stock that’s likely to get some upward momentum on the atai IPO is IntelGenx Technologies (OTCBB: IGXT), which recently announced a deal with atai that will have IGXT developing compounds for the treatment of mental health diseases, some of which have psychedelic properties.
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It’s also worth noting that atai acquired 25% of the company through an equity investment, which generated about $12 million for IGXT. IntelGenx also has a partnership with Cybin Inc. (OTCBB: CLXPF), which is currently one of the biggest players in the psychedelics space.
It’s not as big as atai but still big enough to move the needle.
Although the psychedelics market is still very young, it is absolutely going to usher in one of the most disruptive waves of innovation the mental health industry has seen in decades.
Early research is already successfully demonstrating how many of these psychedelic medicines can effectively treat everything from anxiety and depression to PTSD and neurodegenerative diseases, such as Alzheimer’s and Parkinson’s.
And right now, atai is the 800-pound gorilla in the psychedelics space.
There’s no doubt that atai is going to crush it when it goes public.
That being said, it’s hard to know whether or not you’ll be able to grab shares of that thing before it goes to the moon. Make no mistake: It’s going to move fast.
That’s why I’m putting my money on IGXT and BNOEF right now — while both are still tremendously cheap, flying well below the radar, and available to buy at this very minute.
Bottom line: If you want to get early access to the atai IPO, this is the best way to do it.
And full disclosure: I currently own shares of both IGXT and BNOEF.
I’d be stupid not to.
To a new way of life and a new generation of wealth…
Jeff Siegel
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Jeff is the founder and managing editor of Green Chip Stocks. For more on Jeff, go to his editor’s page.
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P.S. If you want to learn more about the burgeoning psychedelics market, as well as some of the psychedelic companies I’m personally investing in, click here now.
