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Cure Health Inc., a client of MacKay-
Dunn's, and Field Trip Psychedelics have
all raised significant funds from investors
in the past year.
"e potential of psychedelics is brand
new and very hot. ere are companies
that have raised hundreds of millions of
dollars in the last three months that didn't
exist a year ago. at's the definition of a
hot market."
e risk capital is currently in the psyche-
delic as well as the vaccine space, MacKay-
Dunn adds, although he cautions that
everything depends on whether the capital
markets' financing window/public markets
window is open or closed, and it can open
and close on a moment's notice.
"A hot cycle can end abruptly," he
cautions, as exemplified most recently by
the cannabis industry. "A year and a half ago,
cannabis stocks were the talk of the town;
now, they're all under water. So, the window
opens and closes quickly; it favours those
companies in a hot sector, but those sectors
can change abruptly."
Dellelce began his law practice in
1993, lived through the tech bubble years
of the 1990s — and the burst of that
bubble — and took BlackBerry and Open
Text public. He has confidence that "the
companies being financed now are, gener-
ally speaking , more established and real
than those being financed in the 1990s.
is doesn't feel as much like a bubble as
prior eras."
Most companies being financed now
have substantive business plans and oper-
ations, Dellelce says, although he does see
some valuations as being ahead of corporate
performances.
