A few names I hold and follow closely are anxiously awaiting their clearance to "uplist" to a major exchange. Although Cybin (CLXPF) and Draganfly (DFLYF) have little in common in terms of what they do as companies, both are awaiting approvals to list on either the Nasdaq or the NYSE.
The other thing they have in common is a ton of momentum in their respective businesses. Now owning into an uplist can be a little tricky. When stocks are trading under $5, we'll see a reverse split so shares can trade higher. Sometimes it causes excitement, while other times it can cause a pop then a drop. We saw this with GT Biopharma (GTBP) , although anyone that sold after the reverse split is kicking themselves now as shares have tripled in a short time.
I do anticipate both Cybin and Draganfly will get their approvals to move up in July. Unfortunately, we are talking about paperwork, paperwork, and more paperwork on the approval process. I though Draganfly could happen in the May-June timeframe, but I anticipated the SEC would continue to move at the breakneck speed I had been witnessing on Reg A+ filings. That doesn't appear to be the case for moving off the over-the-counter (OTC) exchange to a big board.
In terms of performance, Draganfly recently announced record revenue in the first quarter. The company is drawing both from traditional drone applications as well as COVID. In the U.S., most seem to operate as if COVID is done and not a problem, but we do know it is still a problem worldwide. Additionally, the higher standards of sanitation will likely hang with us for quite some time so don't expect this business to simply dry up. In fact, DFLYF signed a $750,000 deal in the delivery of medical supplies, medicines, and vaccines space a month ago. That's at a minimum with the bulk likely being received in 2022, so that's not even on the books yet.
But get beyond COVID and I see an exciting partnership with Woz ED, Steve Wozniak's K-12 Education Program, which I anticipate will expand moving forward. That should provide a stable and continuing base for revenue. The company signed a one-million dollar flight services contract in the mining services industry. Additionally, they've partnered with Integrated Launcher Solutions to develop a drone-based non-lethal multi-launching system. In short, Draganfly is spreading its product and revenue diversification wings. No pun intended.
I anticipate the uplist will come with a reverse split that should land the stock between $5.50 and $7.50 and likely come with a big round of financing. Once complete, it will be one of the few small drone names trading on a major exchange. It should also be one of the fastest growing with a strong balance sheet.
For its part, Cybin has announced the commencement of trial after trial using psychedelic-assisted psychotherapy to help a wide range of people suffering from depression and distress. It files its 12th patent and receive IRB approval for Phase II clinical trials of its sublingual psilocybin treatment of MDD (Major Depressive Disorder). Toss in two IND candidates and a drug development with a major name in Catalent (CTLT) and investors have a lot to look forward to over the next year.
This company is far from a one-trick pony. Between the patents it holds and the upcoming data, I don't think it will take long for Cybin to close the gap between its market cap and that of competitors MindMed MNMD and Compass Pathways (CMPS) . For reference, Cybin's market cap sits at a little over $200 million while MNMD is close to $1.3 billion and CMPS at $1.57 billion. I could see Cybin quickly moving above $500 million after the uplist and working its way to a billion within the next 12 months.
I want to own them both. Cybin has more upside in the short-term but comes with more risk in the near-term. Draganfly should be a steady climber as I see both companies making their way to the $500 million market cap level in the four to 10 months post uplist with Cybin on the short-end of the curve and Draganfly toward the longer end.