Image Credit: Ignacio Ferre Pérez (Flickr)

When Did Humans Start Experimenting With Alcohol and Drugs?

 

Humans constantly alter the world. We burn fields, turn forests into farms, and breed plants and animals. But humans don’t just reshape our external world – we engineer our internal worlds, and reshape our minds.

One way we do this is by upgrading our mental “software”, so to speak, with myths, religion, philosophy and psychology. The other is to change our mental hardware – our brains. And we do that with chemistry.

Today, humans use thousands of psychoactive compounds to alter our experience of the world. Many derive from plants and fungi, others we manufacture. Some, like coffee and tea, increase alertness; others, like alcohol and opiates, decrease it.Psychiatric drugs affect mood, while psychedelics alter reality.

We alter brain chemistry for all kinds of reasons, using substances recreationally, socially, medicinally, and ritually. Wild animals sometimes eat fermented fruit, but there’s little evidence that they eat psychoactive plants. We’re unusual animals in our enthusiasm for getting drunk and high. But when, where and why did it all start?

 

High on Life in the Pleistocene

Given humanity’s love of drugs and alcohol, you might assume getting high is an ancient, even prehistoric tradition. Some researchers have suggested prehistoric cave paintings were made by humans experiencing altered states of consciousness. Others, perhaps inspired more by hallucinogens than hard evidence, suggest that drugs triggered the evolution of human consciousness. Yet there’s surprisingly little archaeological evidence for prehistoric drug use.

African hunter-gathers – Bushmen, Pygmies and the Hadzabe people – likely live their lives in ways similar to ancestral human cultures. The most compelling evidence for the use of drugs by such early humans is a potentially hallucinogenic plant, kaishe, used by Bushmen healers, which supposedly makes people “go mad for a while”. Yet how much Bushmen historically used drugs is debated, and otherwise, there’s little evidence for drug use in hunter-gatherers.

The implication is that, despite Africa’s diverse plants and fungi, early humans used drugs rarely, maybe to induce trances during rituals, if at all. Perhaps their lifestyle meant they rarely felt the need for escape. Exercise, sunlight, nature, time with friends and family – they’re powerful antidepressants. Drugs are also dangerous; just as you shouldn’t drive drunk, it’s risky to get high when lions lurk in the bush, or a hostile tribe waits one valley over.

Out of Africa

Migrating out of Africa 100,000 years ago, humans explored new lands and encountered new substances. People discovered opium poppies in the Mediterranean, and cannabis and tea in Asia.

 

Author Provided Map

 

Archaeologists have found evidence of opium use in Europe by 5,700 BC. Cannabis seeds appear in archaeological digs at 8,100 BC in Asia, and the ancient Greek historian Herodotus reported Scythians getting high on weed in 450 BC. Tea was brewed in China by 100 BC.

It’s possible our ancestors experimented with substances before the archaeological evidence suggests. Stones and pottery preserve well, but plants and chemicals decay quickly. For all we know, Neanderthals could have been the first to smoke pot. But archaeology suggests the discovery and intensive use of psychoactive substances mostly happened late, after the Neolithic Revolution in 10,000 BC, when we invented farming and civilization.

 

Evidence suggests human drug use came after the Neolithic Revolution, Author provided

The American Psychonauts

When hunters trekked across the Bering Land Bridge 30,000 years ago into Alaska and headed south, they found a chemical cornucopia. Here, the hunters discovered tobacco, coca and maté. But for some reason, indigenous Americans were especially fascinated with psychedelics.

American psychedelics included peyote cactus, San Pedro cactus, morning-glory, Datura, Salvia, Anadenanthera, Ayahuasca, and over 20 species of psychoactive mushrooms. It was a pre-Columbian Burning Man. Indigenous Americans also invented the nasal administration of tobacco and hallucinogens. They were the first to snort drugs – a practice Europeans later borrowed.

 

 A Mixtec Codex showing the ceremonial use of mushrooms. British Museum, CC BY-NC-SA

This American psychedelic culture is ancient. Peyote buttons have been carbon-dated to 4,000 BC, while Mexican mushroom statues hint at Psilocybe use in 500 BC. A 1,000 year-old stash found in Bolivia contained cocaine, Anadenanthera and ayahuasca – and must’ve been one hell of a trip.

Inventing Alcohol

A huge step in the evolution of debauchery was the invention of agriculture because farming made booze possible. It created a surplus of sugars and starches which, mashed and left to ferment, magically transformed into potent brews.

Humans invented alcohol many times independently. The oldest booze dates to 7,000 BC, in China. Wine was fermented in the Caucasus in 6,000 BC; Sumerians brewed beer in 3,000 BC. In the Americas, Aztecs made pulque from the same agaves used today for tequila; Incas brewed chicha, a corn beer.

While in America, psychedelics appear to have been particularly important, Eurasian and African civilizations seem to have preferred alcohol. Wine was central to ancient Greek and Roman cultures, was served at Plato’s Symposium and at the Last Supper, and remains incorporated in the Jewish Seder and Christian communion rituals.

 

Civilization and Intoxication

Archaeology suggests alcohol and drugs date back millennia to early agricultural societies. But there’s little evidence early hunter-gatherers used them. That implies something about agricultural societies and the civilizations they gave rise to promoted substance use. But why?

It’s possible large civilizations simply drive innovation of all kinds: in ceramics, textiles, metals – and psychoactive substances. Perhaps alcohol and drugs also promoted civilization – drinking can help people socialize, altered perspectives encourage creativity, and caffeine makes us productive. And it may just be safer to get drunk or high in a city than the savannah.

A darker possibility is that psychoactive substance use developed in response to civilization’s ills. Large societies create large problems – wars, plagues, inequalities in wealth and power – against which individuals are relatively powerless. Perhaps when people couldn’t change their circumstances, they decided to change their minds.

 

This article was republished with permission from The Conversation, a news site
dedicated to sharing ideas from academic experts. It represents the
research-based findings and opinions of Nicholas R. Longrich Senior
Lecturer in Evolutionary Biology and Paleontology, University of Bath.

 

 

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	Image Credit: Ignacio Ferre Pérez (Flickr)

When Did Humans Start Experimenting With Alcohol and Drugs?

 

Humans constantly alter the world. We burn fields, turn forests into farms, and breed plants and animals. But humans don’t just reshape our external world – we engineer our internal worlds, and reshape our minds.

One way we do this is by upgrading our mental “software”, so to speak, with myths, religion, philosophy and psychology. The other is to change our mental hardware – our brains. And we do that with chemistry.

Today, humans use thousands of psychoactive compounds to alter our experience of the world. Many derive from plants and fungi, others we manufacture. Some, like coffee and tea, increase alertness; others, like alcohol and opiates, decrease it.Psychiatric drugs affect mood, while psychedelics alter reality.

We alter brain chemistry for all kinds of reasons, using substances recreationally, socially, medicinally, and ritually. Wild animals sometimes eat fermented fruit, but there’s little evidence that they eat psychoactive plants. We’re unusual animals in our enthusiasm for getting drunk and high. But when, where and why did it all start?

 

High on Life in the Pleistocene

Given humanity’s love of drugs and alcohol, you might assume getting high is an ancient, even prehistoric tradition. Some researchers have suggested prehistoric cave paintings were made by humans experiencing altered states of consciousness. Others, perhaps inspired more by hallucinogens than hard evidence, suggest that drugs triggered the evolution of human consciousness. Yet there’s surprisingly little archaeological evidence for prehistoric drug use.

African hunter-gathers – Bushmen, Pygmies and the Hadzabe people – likely live their lives in ways similar to ancestral human cultures. The most compelling evidence for the use of drugs by such early humans is a potentially hallucinogenic plant, kaishe, used by Bushmen healers, which supposedly makes people “go mad for a while”. Yet how much Bushmen historically used drugs is debated, and otherwise, there’s little evidence for drug use in hunter-gatherers.

The implication is that, despite Africa’s diverse plants and fungi, early humans used drugs rarely, maybe to induce trances during rituals, if at all. Perhaps their lifestyle meant they rarely felt the need for escape. Exercise, sunlight, nature, time with friends and family – they’re powerful antidepressants. Drugs are also dangerous; just as you shouldn’t drive drunk, it’s risky to get high when lions lurk in the bush, or a hostile tribe waits one valley over.

Out of Africa

Migrating out of Africa 100,000 years ago, humans explored new lands and encountered new substances. People discovered opium poppies in the Mediterranean, and cannabis and tea in Asia.

 

Author Provided Map

 

Archaeologists have found evidence of opium use in Europe by 5,700 BC. Cannabis seeds appear in archaeological digs at 8,100 BC in Asia, and the ancient Greek historian Herodotus reported Scythians getting high on weed in 450 BC. Tea was brewed in China by 100 BC.

It’s possible our ancestors experimented with substances before the archaeological evidence suggests. Stones and pottery preserve well, but plants and chemicals decay quickly. For all we know, Neanderthals could have been the first to smoke pot. But archaeology suggests the discovery and intensive use of psychoactive substances mostly happened late, after the Neolithic Revolution in 10,000 BC, when we invented farming and civilization.

 

Evidence suggests human drug use came after the Neolithic Revolution, Author provided

The American Psychonauts

When hunters trekked across the Bering Land Bridge 30,000 years ago into Alaska and headed south, they found a chemical cornucopia. Here, the hunters discovered tobacco, coca and maté. But for some reason, indigenous Americans were especially fascinated with psychedelics.

American psychedelics included peyote cactus, San Pedro cactus, morning-glory, Datura, Salvia, Anadenanthera, Ayahuasca, and over 20 species of psychoactive mushrooms. It was a pre-Columbian Burning Man. Indigenous Americans also invented the nasal administration of tobacco and hallucinogens. They were the first to snort drugs – a practice Europeans later borrowed.

 

 A Mixtec Codex showing the ceremonial use of mushrooms. British Museum, CC BY-NC-SA

This American psychedelic culture is ancient. Peyote buttons have been carbon-dated to 4,000 BC, while Mexican mushroom statues hint at Psilocybe use in 500 BC. A 1,000 year-old stash found in Bolivia contained cocaine, Anadenanthera and ayahuasca – and must’ve been one hell of a trip.

Inventing Alcohol

A huge step in the evolution of debauchery was the invention of agriculture because farming made booze possible. It created a surplus of sugars and starches which, mashed and left to ferment, magically transformed into potent brews.

Humans invented alcohol many times independently. The oldest booze dates to 7,000 BC, in China. Wine was fermented in the Caucasus in 6,000 BC; Sumerians brewed beer in 3,000 BC. In the Americas, Aztecs made pulque from the same agaves used today for tequila; Incas brewed chicha, a corn beer.

While in America, psychedelics appear to have been particularly important, Eurasian and African civilizations seem to have preferred alcohol. Wine was central to ancient Greek and Roman cultures, was served at Plato’s Symposium and at the Last Supper, and remains incorporated in the Jewish Seder and Christian communion rituals.

 

Civilization and Intoxication

Archaeology suggests alcohol and drugs date back millennia to early agricultural societies. But there’s little evidence early hunter-gatherers used them. That implies something about agricultural societies and the civilizations they gave rise to promoted substance use. But why?

It’s possible large civilizations simply drive innovation of all kinds: in ceramics, textiles, metals – and psychoactive substances. Perhaps alcohol and drugs also promoted civilization – drinking can help people socialize, altered perspectives encourage creativity, and caffeine makes us productive. And it may just be safer to get drunk or high in a city than the savannah.

A darker possibility is that psychoactive substance use developed in response to civilization’s ills. Large societies create large problems – wars, plagues, inequalities in wealth and power – against which individuals are relatively powerless. Perhaps when people couldn’t change their circumstances, they decided to change their minds.

 

This article was republished with permission from The Conversation, a news site
dedicated to sharing ideas from academic experts. It represents the
research-based findings and opinions of Nicholas R. Longrich Senior
Lecturer in Evolutionary Biology and Paleontology, University of Bath.

 

 

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Will Federal Law Surrounding Cannabis be Changed?

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Travelzoo Reports Second Quarter 2021 Results

 

NEW YORK, 
July 21, 2021 (GLOBE NEWSWIRE) — 
Travelzoo® (NASDAQ: TZOO):

• Consolidated revenue of 
  $19.1 million, up 172% year-over-year and up 34% quarter-over-quarter
• Non-GAAP consolidated operating profit of 
  $4.9 million
• Earnings per share (EPS) of 
  $0.22 attributable to 
  Travelzoo from continuing operations
• Cash flow from operations of 
  $12.8 million

Travelzoo, a global Internet media company that publishes exclusive offers and experiences for members, today announced financial results for the second quarter ended 
June 30, 2021. Consolidated revenue was 
$19.1 million, up 172% from 
$7.0 million year-over-year and up 34% from 
$14.3 million in the prior quarter. Reported revenue excludes revenue from discontinued operations in 
Asia Pacific. 
Travelzoo’s reported revenue consists of advertising revenues and commissions, derived from and generated in connection with purchases made by 
Travelzoo members.

The reported net income attributable to 
Travelzoo from continuing operations was 
$3.0 million for Q2 2021. At the consolidated level, including minority interests, the reported net income from continuing operations was 
$3.0 million. EPS from continuing operations was 
$0.22, compared to a loss per share of (
$0.48) in the prior-year period.

Non-GAAP operating profit was 
$4.9 million. The calculation of non-GAAP operating profit excludes amortization of intangibles (
$0.3 million), stock option expenses (
$0.9 million), and severance-related expenses (
$0.2 million). See section “Non-GAAP Financial Measures” below.

“We see continued improvement in our business. We seize the exceptional industry opportunities for providing 30 million 
Travelzoo members exclusive and irresistible travel, entertainment, and local offers and experiences. 
Travelzoo members are affluent, active, and open for new experiences. 75% say 
Travelzoo influences their travel destinations because they trust 
Travelzoo“, said  Holger Bartel, Global CEO.

Cash Position
As of 
June 30, 2021, consolidated cash, cash equivalents and restricted cash were 
$82.1 million. Cash flow from operations was 
$12.8 million. There were no significant capital expenditures.

Reserve
Reported revenues include a reserve of 
$3.7 million related to commissions to be earned from refundable vouchers sold. The reserve is booked as contra revenue. For Q2 2021, an adjustment to the reserve increased reported revenue by 
$286,000.

Travelzoo North America

North America business segment revenue increased 233% year-over-year to 
$14.0 million. Operating profit for Q2 2021 was 
$3.5 million, or 25% of revenue, compared to an operating loss of 
$4.7 million in the prior-year period.

Travelzoo Europe

Europe business segment revenue increased 128% year-over-year to 
$4.2 million. Operating loss for Q2 2021 was 
$227,000, compared to an operating loss of 
$1.7 million in the prior-year period.

Jack’s Flight Club
On 
January 13, 2020, 
Travelzoo acquired 60% of Jack’s 
Flight Club, a membership subscription service. Jack’s 
Flight Club revenue decreased 9% year-over-year to 
$860,000. Operating income for Q2 2021 was 
$170,000, compared to an operating loss of 
$248,000 in the prior-year period. After consolidation with 
Travelzoo, Jack’s 
Flight Club’s net income was 
$98,000, with 
$59,000 attributable to 
Travelzoo as a result of recording 
$275,000 of amortization of intangible assets related to the acquisition.

Licensing
In 
June 2020, 
Travelzoo sold its subsidiary in 
Japan, Travelzoo Japan K.K., to Mr.  Hajime Suzuki. In connection with the sale, 
Travelzoo and Travelzoo Japan K.K. entered into a royalty-bearing licensing agreement for the exclusive use of 
Travelzoo members in 
Japan. In 
August 2020, 
Travelzoo sold its 
Singapore subsidiary to Mr.  Julian Rembrandt and entered into a royalty-bearing licensing agreement for, among other things, the exclusive use of 
Travelzoo’s members in 
Australia, 
New Zealand, and 
Singapore. Under the licensing agreements, 
Travelzoo’s existing members in 
Australia, 
Japan, 
New Zealand, and 
Singapore will continue to be owned by 
Travelzoo as the licensor. Licensing revenue is booked with a lag of one quarter. 
Travelzoo did not record any licensing revenue from either subsidiary in Q2 2021.

Members and Subscribers
As of 
June 30, 2021, we had 31.3 million members worldwide. In 
North America, the unduplicated number of 
Travelzoo members was 17.7 million as of 
June 30, 2021, up 6% from 
June 30, 2020. In 
Europe, the unduplicated number of 
Travelzoo members was 8.5 million as of 
June 30, 2021, down 6% from 
June 30, 2020. Jack’s 
Flight Club had 1.7 million subscribers as of 
June 30, 2021, consistent with 1.7 million subscribers as of 
June 30, 2020.

Discontinued Operations
As announced in a press release on 
March 10, 2020, 
Travelzoo decided to exit its 
Asia Pacific business which in 2019 reduced EPS by 
$0.60. The 
Asia Pacific business has been classified as discontinued operations since 
March 31, 2020. Prior periods have been reclassified to conform with the current presentation. Certain reclassifications have been made for current and prior periods between the continued operations and the discontinued operations in accordance with 
U.S. GAAP.

Income Taxes
Income tax expense was 
$1.1 million in Q2 2021, compared to an income tax benefit of 
$1.3 million in the prior-year period.

Non-GAAP Financial Measures
Management calculates non-GAAP operating income when evaluating the financial performance of the business. Travelzoo’s calculation of non-GAAP operating income, also called “non-GAAP operating profit” in this press release and today’s earnings conference call, excludes the following items: impairment of intangibles and goodwill, amortization of intangibles, stock option expenses, and severance- related expenses. This press release includes a table which reconciles GAAP operating income to the calculation of non-GAAP operating income. Non-GAAP operating income is not required by, or presented in accordance with, generally accepted accounting principles in 
the United States of America (“GAAP”). This information should be considered as supplemental in nature and should not be considered in isolation or as a substitute for the financial information prepared in accordance with GAAP. In addition, these non-GAAP financial measures may not be the same as similarly titled measures reported by other companies.

Looking Ahead
We currently expect for Q3 2021 to report higher revenue and profitability. We see a trend of recovery of our revenue. We have been able to reduce our operating expenses, and we believe we can continue the trend of lower fixed costs in the foreseeable future.

Conference Call

Travelzoo will host a conference call to discuss second quarter results today at 
11:00 a.m. ET. Please visit http://ir.travelzoo.com/events-presentations to download the management presentation (PDF format) to be discussed in the conference call; and access the webcast.

About Travelzoo
Travelzoo® provides our 30 million members insider deals and one-of-a-kind experiences personally reviewed by one of our deal experts around the globe. We have our finger on the pulse of outstanding travel, entertainment, and lifestyle experiences. For over 20 years we have worked in partnership with more than 5,000 top travel suppliers—our long-standing relationships give 
Travelzoo members access to irresistible deals.

Certain statements contained in this press release that are not historical facts may be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934. These forward-looking statements may include, but are not limited to, statements about our plans, objectives, expectations, prospects and intentions, markets in which we participate and other statements contained in this press release that are not historical facts. When used in this press release, the words “expect”, “predict”, “project”, “anticipate”, “believe”, “estimate”, “intend”, “plan”, “seek” and similar expressions are generally intended to identify forward-looking statements. Because these forward-looking statements involve risks and uncertainties, there are important factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements, including changes in our plans, objectives, expectations, prospects and intentions and other factors discussed in our filings with the 
SEC. We cannot guarantee any future levels of activity, performance or achievements. 
Travelzoo undertakes no obligation to update forward-looking statements to reflect events or circumstances occurring after the date of this press release.

Travelzoo, Top 20, and 
Jack’s Flight Club are registered trademarks of 
Travelzoo.

Travelzoo
Condensed Consolidated Statements of Operations
(Unaudited)
(In thousands, except per share amounts)

	Three months ended								Six months ended
	June 30,								June 30,
	2021				2020				2021				2020
Revenues	$	19,079			$	7,004			$	33,363			$	27,331
Cost of revenues	2,522				2,141				5,540				4,844
Gross profit	16,557				4,863				27,823				22,487
Operating expenses:
Sales and marketing	7,340				4,288				14,130				17,382
Product development	685				566				1,368				1,994
General and administrative	5,056				6,642				9,616				12,164
Impairment of intangible asset and goodwill	—				—				—				2,920
Total operating expenses	13,081				11,496				25,114				34,460
Operating income (loss)	3,476				(6,633		)		2,709				(11,973		)
Other income (loss), net	684				(179		)		518				(185		)
Income (loss) from continuing operations before income taxes	4,160				(6,812		)		3,227				(12,158		)
Income tax expense (benefit)	1,136				(1,309		)		1,878				(1,826		)
Income (loss) from continuing operations	3,024				(5,503		)		1,349				(10,332		)
Income (loss) from discontinued operations, net of tax	29				(795		)		14				(3,714		)
Net income (loss)	3,053				(6,298		)		1,363				(14,046		)
Net income (loss) attributable to non-controlling interest	39				(108		)		(9		)		(1,247		)
Net income (loss) attributable to  Travelzoo	$	3,014			$	(6,190	)		$	1,372			$	(12,799	)
Net income (loss) attributable to Travelzoo—continuing operations	$	2,985			$	(5,395	)		$	1,358			$	(9,085	)
Net income (loss) attributable to Travelzoo—discontinued operations	$	29			$	(795	)		$	14			$	(3,714	)
Income (Loss) per share—basic
Continuing operations	$	0.26			$	(0.48	)		$	0.12			$	(0.80	)
Discontinued operations	$	—			$	(0.07	)		$	—			$	(0.33	)
Net income (loss) per share —basic	$	0.26			$	(0.55	)		$	0.12			$	(1.13	)
Income (Loss) per share—diluted
Continuing operations	$	0.22			$	(0.48	)		$	0.10			$	(0.80	)
Discontinued operations	$	—			$	(0.07	)		$	—			$	(0.33	)
Net income (loss) per share—diluted	$	0.22			$	(0.55	)		$	0.10			$	(1.13	)
Shares used in per share calculation from continuing operations—basic	11,488				11,310				11,440				11,375
Shares used in per share calculation from discontinued operations—basic	11,488				11,310				11,440				11,375
Shares used in per share calculation from continuing operations—diluted	13,408				11,310				13,248				11,375
Shares used in per share calculation from discontinued operations—diluted	13,408				11,310				13,248				11,375

Travelzoo
Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands)

	June 30, 2021				December 31, 2020
Assets
Current assets:
Cash and cash equivalents	$	80,962			$	63,061
Accounts receivable, net	9,905				4,519
Prepaid income taxes	1,616				931
Deposits	105				137
Prepaid expenses and other	3,253				1,166
Assets from discontinued operations	84				230
Total current assets	95,925				70,044
Deposits and other	1,552				745
Deferred tax assets	3,647				5,067
Restricted cash	1,164				1,178
Operating lease right-of-use assets	8,559				8,541
Property and equipment, net	1,034				1,347
Intangible assets, net	3,975				4,534
Goodwill	10,944				10,944
Total assets	$	126,800			$	102,400
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	8,503			$	6,996
Merchant payables	82,236				57,104
Accrued expenses and other	8,222				8,649
Deferred revenue	2,213				2,688
Operating lease liabilities	3,751				3,587
PPP notes payable (current portion)	3,156				2,849
Income tax payable	98				326
Liabilities from discontinued operations	482				671
Total current liabilities	108,661				82,870
PPP notes payables	—				814
Deferred tax liabilities	38				357
Long-term operating lease liabilities	10,353				10,774
Other long-term liabilities	2,146				1,085
Total liabilities	121,198				95,900
Non-controlling interest	4,600				4,609
Common stock	115				114
Treasury stock (at cost)	(1,583		)		—
Additional paid-in capital	4,988				6,239
Retained earnings (accumulated deficit)	969				(403		)
Accumulated other comprehensive loss	(3,487		)		(4,059		)
Total stockholders’ equity	1,002				1,891
Total liabilities and stockholders’ equity	$	126,800			$	102,400

Travelzoo
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(In thousands)

	Three months ended								Six months ended
	June 30,								June 30,
	2021				2020				2021				2020
Cash flows from operating activities:
Net income (loss)	$	3,053			$	(6,298	)		$	1,363			$	(14,046	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	476				667				960				1,218
Stock-based compensation	934				4,031				1,816				4,054
Deferred income tax	599				(1,152		)		1,140				(1,761		)
Impairment of intangible assets and goodwill	—				—				—				2,920
Gain on notes payable settlement	—				(1,500		)		—				(1,500		)
Loss on long-lived assets	—				—				—				437
Loss on equity investment in WeGo	—				141				—				336
Gain on PPP notes payable forgiveness	(429		)		—				(429		)		—
Net foreign currency effects	(103		)		225				(255		)		(456		)
Provision (reversal) of loss on accounts receivable and other reserves	(417		)		986				(871		)		2,427
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable	(2,552		)		3,674				(4,781		)		6,183
Prepaid income taxes	(168		)		—				(713		)		989
Prepaid expenses and other	(418		)		558				(2,775		)		1,420
Accounts payable	(312		)		1,602				1,415				2,149
Merchant payables	11,973				15,100				25,185				8,160
Accrued expenses and other	321				(2,084		)		(320		)		(1,380		)
Income tax payable	(102		)		266				(228		)		(67		)
Other liabilities	(80		)		263				332				2,340
Net cash provided by operating activities	12,775				16,479				21,839				13,423
Cash flows from investing activities:
Acquisition of business, net of cash acquired	—				—				—				(679		)
Other investment	—				(430		)		—				(430		)
Purchases of property and equipment	(77		)		(72		)		(84		)		(203		)
Net cash used in investing activities	(77		)		(502		)		(84		)		(1,312		)
Cash flows from financing activities:
Repurchase of common stock	—				—				(1,583		)		(1,205		)
Payment of promissory notes	—				(6,800		)		—				(7,800		)
Proceeds from notes payable	—				3,663				—				3,663
Exercise of stock options and taxes paid for net share settlement	(3,066		)		—				(3,066		)		—
Net cash used in financing activities	(3,066		)		(3,137		)		(4,649		)		(5,342		)
Effect of exchange rate on cash, cash equivalents and restricted cash	427				(239		)		697				(511		)
Net increase in cash, cash equivalents and restricted cash	10,059				12,601				17,803				6,258
Cash, cash equivalents and restricted cash at beginning of period	72,129				14,367				64,385				20,710
Cash, cash equivalents and restricted cash at end of period	$	82,188			$	26,968			$	82,188			$	26,968

Travelzoo
Segment Information from Continuing Operations
(Unaudited)
(In thousands)

Three months ended June 30, 2021	Travelzoo North America				Travelzoo Europe				Jack’s Flight Club				Elimination					Consolidated
Revenue from unaffiliated customers	$	13,650			$	4,569			$	860			$	—				$	19,079
Intersegment revenue	335				(335		)		—				—					—
Total net revenues	13,985				4,234				860				—					19,079
Operating income (loss)	$	3,533			$	(227	)		$	170			$	—				$	3,476
Three months ended June 30, 2020	Travelzoo North America				Travelzoo Europe				Jack’s Flight Club				Elimination					Consolidated
Revenue from unaffiliated customers	$	4,254			$	1,805			$	945			$	—				$	7,004
Intersegment revenue	(52		)		52				—				—					—
Total net revenues	4,202				1,857				945				—					7,004
Operating loss	$	(4,702	)		$	(1,683	)		$	(248	)		$	—				$	(6,633	)

 

Six months ended June 30, 2021	Travelzoo North America				Travelzoo Europe				Jack’s Flight Club				Elimination				Consolidated
Revenue from unaffiliated customers	$	23,478			$	8,138			$	1,747			$	—			$	33,363
Intersegment revenue	326				(326		)		—				—				—
Total net revenues	23,804				7,812				1,747				—				33,363
Operating income (loss)	$	3,572			$	(923	)		$	60			$	—			$	2,709
Six months ended June 30, 2020	Travelzoo North America				Travelzoo Europe				Jack’s Flight Club				Elimination				Consolidated
Revenue from unaffiliated customers	$	16,803			$	8,908			$	1,628			$	(8	)		$	27,331
Intersegment revenue	96				(104		)		—				8				—
Total net revenues	16,899				8,804				1,628				—				27,331
Operating loss	$	(5,678	)		$	(3,024	)		$	(3,263	)		$	(8	)		$	(11,973	)

Travelzoo
Reconciliation of GAAP to Non-GAAP Information
(Unaudited)
(In thousands, except per share amounts)

	Three months ended								Six months ended
	June 30,								June 30,
	2021				2020				2021				2020
GAAP operating expense	$	13,081			$	11,496			$	25,114			$	34,460
Non-GAAP adjustments:
Impairment of intangible and goodwill (A)	—				—				—				2,920
Amortization of intangibles (B)	275				396				559				611
Stock option expenses (C)	934				4,031				1,816				4,054
Severance-related expenses (D)	175				67				398				284
Non-GAAP operating expense	11,697				7,002				22,341				26,591
GAAP operating income (loss)	3,476				(6,633		)		2,709				(11,973		)
Non-GAAP adjustments (A through D)	1,384				4,494				2,773				7,869
Non-GAAP operating income (loss)	4,861				(2,139		)		5,482				(4,104		)

Investor Relations:
Almira Pusch
ir@travelzoo.com

Source: Travelzoo

 

Esports Entertainment Group Provides an Update on Crypto Mining Application for LAN Centers

 

Since launch > 100 centers have mined a total of $250K+ in Ethereum

Newark, New Jersey–(Newsfile Corp. – July 20, 2021) – Esports Entertainment Group, Inc. (NASDAQ: GMBL) (NASDAQ: GMBLW) (or the “Company”), an esports entertainment and online gambling company, is pleased to provide an update on the rollout of ggCircuit’s crypto mining application for LAN centers. The crypto mining application is an add-on to the ggLeap subscription offering that enables center owners to utilize idle computing power to mine for Ethereum by opting into the initiative with the click of a button. Since launching in beta in early May, over 100 centers have opted in and mined a total of more than $250K of Ethereum.

“The crypto mining application has exceeded our expectations so far in terms of center participation as well as revenue,” commented Grant Johnson, CEO of Esports Entertainment Group. “This is a great example of the value that ggCircuit can bring to the customers in their network. The feedback and enthusiasm we have received from centers so far has been fantastic.”

ggCircuit is a B2B software company that provides cloud-based management for LAN centers, a tournament platform, and integrated wallet/point-of-sale solutions for enterprise customers.

About Esports Entertainment Group

Esports Entertainment Group is a full stack esports and online gambling company fueled by the growth of video-gaming and the ascendance of esports with new generations. Our mission is to help connect the world at large with the future of sports entertainment in unique and enriching ways that bring fans and gamers together. Esports Entertainment Group and its affiliates are well-poised to help fans and players to stay connected and involved with their favorite esports. From traditional sports partnerships with professional NFL/NHL/NBA/FIFA teams, community-focused tournaments in a wide range of esports, and boots-on-the-ground LAN cafes, EEG has influence over the full-spectrum of esports and gaming at all levels. The Company maintains offices in New Jersey, the UK and Malta. For more information visit www.esportsentertainmentgroup.com.

FORWARD-LOOKING STATEMENTS

The information contained herein includes forward-looking statements. These statements relate to future events or to our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond our control and which could, and likely will, materially affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects our current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to our operations, results of operations, growth strategy and liquidity. We assume no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future. The safe harbor for forward-looking statements contained in the Securities Litigation Reform Act of 1995 protects companies from liability for their forward-looking statements if they comply with the requirements of the Act.

Contact:

U.S. Investor Relations
RedChip Companies, Inc.
Dave Gentry
407-491-4498
dave@redchip.com

Media & Investor Relations Inquiries
Jeff@esportsentertainmentgroup.com

 

Esports Entertainment Group Provides an Update on Crypto Mining Application for LAN Centers

 

Since launch > 100 centers have mined a total of $250K+ in Ethereum

Newark, New Jersey–(Newsfile Corp. – July 20, 2021) – Esports Entertainment Group, Inc. (NASDAQ: GMBL) (NASDAQ: GMBLW) (or the “Company”), an esports entertainment and online gambling company, is pleased to provide an update on the rollout of ggCircuit’s crypto mining application for LAN centers. The crypto mining application is an add-on to the ggLeap subscription offering that enables center owners to utilize idle computing power to mine for Ethereum by opting into the initiative with the click of a button. Since launching in beta in early May, over 100 centers have opted in and mined a total of more than $250K of Ethereum.

“The crypto mining application has exceeded our expectations so far in terms of center participation as well as revenue,” commented Grant Johnson, CEO of Esports Entertainment Group. “This is a great example of the value that ggCircuit can bring to the customers in their network. The feedback and enthusiasm we have received from centers so far has been fantastic.”

ggCircuit is a B2B software company that provides cloud-based management for LAN centers, a tournament platform, and integrated wallet/point-of-sale solutions for enterprise customers.

About Esports Entertainment Group

Esports Entertainment Group is a full stack esports and online gambling company fueled by the growth of video-gaming and the ascendance of esports with new generations. Our mission is to help connect the world at large with the future of sports entertainment in unique and enriching ways that bring fans and gamers together. Esports Entertainment Group and its affiliates are well-poised to help fans and players to stay connected and involved with their favorite esports. From traditional sports partnerships with professional NFL/NHL/NBA/FIFA teams, community-focused tournaments in a wide range of esports, and boots-on-the-ground LAN cafes, EEG has influence over the full-spectrum of esports and gaming at all levels. The Company maintains offices in New Jersey, the UK and Malta. For more information visit www.esportsentertainmentgroup.com.

FORWARD-LOOKING STATEMENTS

The information contained herein includes forward-looking statements. These statements relate to future events or to our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond our control and which could, and likely will, materially affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects our current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to our operations, results of operations, growth strategy and liquidity. We assume no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future. The safe harbor for forward-looking statements contained in the Securities Litigation Reform Act of 1995 protects companies from liability for their forward-looking statements if they comply with the requirements of the Act.

Contact:

U.S. Investor Relations
RedChip Companies, Inc.
Dave Gentry
407-491-4498
dave@redchip.com

Media & Investor Relations Inquiries
Jeff@esportsentertainmentgroup.com

Monday, July 19, 2021

Bassett Furniture (BSET)
Raises Dividend, Increases Buyback Authorization

Bassett Furniture Industries Inc is a manufacturer, importer, and retailer of home furnishings products in the United States. It operates through the following segments: The Wholesale segment focuses on the design, manufacture, sourcing, sale, and distribution of furniture products. The Retail segment consists of company-owned stores. The Logistical Services segment offers shipping, delivery, and warehousing services.

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Dividend Increase. Basset’s Board of Directors approved a 12% increase in the quarterly dividend to $0.14 per share from a prior $0.125 per share. At the current price, the projected annual dividend of $0.56 per share equates to a 2.2% dividend yield. And this does not include the special dividend the Company often announces that has historically ranged in the $0.20-$0.35 per share range.


Increases Buyback Authorization.  Bassett also increased its share repurchase authorization by $16 million to $20 million. Back in October 2018, Bassett had increased its authorization to $20 million, indicating the Company has repurchased $16 million of stock, or roughly 6.5% of the current market capitalization, since then. With the shares drifting lower since hitting a 52-week high of $37 in …

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

	Image Credit: K putt (Flickr)

Golden Age of Sports M&A to Take Place Over Next 24 Months

 

The first half of 2021 was particularly active for sports-related mergers and acquisitions. There were at least 10 deals announced within the sports betting and data category; a handful of large-scale transactions within collectibles (Topps, Collectors Universe, Goldin Auctions 2x), ticketing (Vivid Seats), events/experiential (Bowlero) and hospitality (Legends); and several smaller, more opportunistic acquisitions sprinkled across the ecosystem (The Spun, Locked On Sports Podcast Network). By comparison, one could count the number of deals announced in all of 2020 on two hands.

But dealmakers and private equity executives alike believe the second half will be even busier. In fact, Fifth Generation Sports CEO Chris Russo suggested the industry is likely headed into “the biggest bull market of sports M&A that [anyone] has ever seen.”

 

This article was originally published July 6, 2021 as part of the JohnWallStreet daily e-newsletter in Sportico. The e-newsletter is well respected in how it covers the business of sports. Cha

 

Our Take: H1 2021 may well be considered the beginning of sports M&A’s golden age, as several catalysts could drive transaction volume to even greater heights over the next 18 months. These include pent-up consumer demand (a result of the pandemic), the existence of three sectors ripe for consolidation (see: esports, sports betting, and collectibles) and the SPAC frenzy (a once-in-20-year phenomenon).

 

 

Coming out of social lockdown, the desire to live life again is high. It’s believed strong demand for live events will drive M&A opportunities. Experiential businesses were “hit really hard [over the last 15 months]. So, some [companies] are challenged [financially] and may need to sell,” Russo said. “People are also thinking about [creating] new retail experiences because of all the retail [businesses] that went belly up.” How much of that deal flow is M&A versus new business origination remains to be seen.

Enormous amounts of investment capital have been pumped into esports in recent years. But the disruption has not really led to consolidation within the business—at least not yet (save GameSquare Esports’ recent purchase of Jerry Jones’ Complexity Gaming). Russo suspects some could take place within the next 12-24 months, as businesses hurt by the absence of live events look to be swallowed up.

Sports betting was a particularly active M&A category in H1 2021. But there are a couple of reasons to think activity will accelerate. With nearly all of the large media outlets spoken for (in terms of content partnerships), operators will be looking for other ways to distinguish themselves. That could result in the acquisition of some marketing-tech companies and affiliate businesses. Of course, the process of picking off affiliate sites has already begun. We counted at least seven transactions involving sports betting affiliates over the last 18 months. The pending/potential legalization of mobile sports betting in large states, like New York and Florida (plus Canada), could also lead to some deals as operators look to quickly acquire users in those markets.

 

 

The fragmented collectibles business is ripe for consolidation. The industry now has a handful of big fish (see: SPAC-supported Topps, Steve Cohen-backed Collectors Holdings, Fanatics and Dapper Labs), but the majority of legacy collectibles-related companies still operate as mom-and-pop shops. Said Russo, “There is certainly potential for a lot of those [entities] to get rolled up or bought by some of the bigger players.” That would include companies looking to find their place in the digital collectibles world. It should be noted that Sportico reported Collectors Holdings agreed to purchase The Chernin Group-backed Goldin Auctions late last week.

One vertical unlikely to serve as a growth engine for M&A, however, is sports media. “When you think about sports media, a lot of the major deals have already been done (think: Fox RSNs),” Russo said. “There may be some smaller deals—we saw Outkick, The Spun and Locked On Sports Podcast Network all sold in H1 2021—but [there is unlikely to be] a whole lot happening in between.”

The large number of SPACs looking for a sports-themed company is expected to drive M&A activity, too (assuming the PIPE market holds it up). Remember, each SPAC that goes public needs to complete a business combination within two years (or return the money raised to shareholders and shutter the SPAC). As of June 24, Sportico’s SPAC tracker shows there are 113 sports-focused SPACs and/or SPACs led by sports executives currently planning an IPO (12), pricing an IPO (51) or seeking a target (50).

SPACs that get through (i.e., consummate a business combination) should also be acquisitive moving forward. “There’s a lot of pressure on SPAC companies, once they get de-SPAC’d, to grow quickly and buy things now that they have access to liquid currency,” Russo said. “If each of those companies buys two more [assets] each year, the amount of deals that will occur over the next 24 months will be astounding.”

SPAC acquisitions will be larger transactions (simply because that is the nature of SPACs and the public markets). But most of the deals that take place over the next 18 or so months—“roll-ups and niche buys,” Russo said—are likely to be of the middle-market variety (think: $25 million to $100 million). Strong demand and competitive marketplace dynamics could push asset valuations higher than they might otherwise be.

One of the reasons demand is expected to be so strong is because institutional investors only recently discovered that sports is a viable business. “The combination of COVID and a lot of investment activity just opened up everyone’s eyes that this is a category you can invest in. [Sports] might not provide the full upside you get from tech and venture. But you also don’t have the downside,” said a partner at one sports PE firm.

While we anticipate an active sports M&A market through the summer of 2023, team control transactions are likely to be few and far between. “For the most part, owners today want these teams to be legacy businesses that they pass down to their kids,” Russo said. The PE executive we spoke to agreed, before suggesting that limited partnership stake sales could ramp up as “people now accept they can invest in a team either through a fund or separately.”

 

Suggested Reading:

How Does the Esports Industry Make Money

Esports Investors are Now Better Able to Evaluate Performance Comparisons

Ad Tech – Back in the Saddle and Riding High

The Lifecycle of a SPAC

 

Special thanks to Sportico.

You can stay up to date on the business of sports by clicking their logo above.

 

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The Cannabis Administration and Opportunity Act Would Open the Doors for U.S. Marijuana Businesses

 

Legalization of marijuana (cannabis, THC, pot) for medical purposes or recreational use has been rapid in the U.S. — Eighteen states have passed full legalization, and 37 permit medical use or study. The growing public endorsement suggests broad support for permissive cannabis laws. Still, that support hasn’t garnered high enough numbers of legislators in Washington to match the decriminalization and permissiveness of even the 37 states that permit only medical use.

 

Turning Point?

It’s expected that today (July 14), the Senate Majority Leader (Chuck Schumer), the Finance Chairman (Ron Wyden), and a New Jersey Senator (Cory Booker) will present a discussion draft of their marijuana legalization bill at a press conference. The release of this draft may heighten national discussion and provide a tailwind to the hopeful industry.

The bill will be called The Cannabis Administration
and Opportunity Act and invites the long-anticipated move to delete marijuana from the federal list of controlled substances. The bill would also define federal tax and overriding regulation of marijuana on the federal level, leaving room for states to implement and enforce their own laws, presumably not unlike alcohol or prescription medications. This nod to states’ rights to govern their own citizenry would include a state’s ability to not allow legal marijuana use within their borders. The bill would also help states by establishing a wide range of federal research into concerns such as “drugged driving”  and the impact cannabis has on brain function. These measures would collect data about traffic deaths, violent crime, and public health concerns that are not yet understood.  

 

 

Provisions

The original bill is expected to also include provisions that include three grant programs designed to help disadvantaged individuals, and those hurt by years of strict drug laws. This would include expungements of federal non-violent cannabis offenses. States and cities would also be required to enact expungement programs to receive any grant funding created by the bill.

The bill is expected to include verbiage that reassures the federal banking system that serving cannabis companies on banking basics would not put them in jeopardy. It could also propose removing the 280E tax that has been a drag on profitability and the subject of court cases. The proposed bill could also provide specifics for companies that grow, manufacture, or distribute marijuana in the U.S. to list on U.S. stock exchanges.

Senator Schumer has indicated he hopes to enact the legislation by April 2022. However, it does not appear that he has open backing by the White House. Although President Biden has said, he supports decriminalization, it’s uncertain whether full legal status at the national level would be supported by the President or by enough legislators needed to pass the measure.

 

Take-Away

Although the complete contents of the proposal has not been revealed, it is expected that it is written to solve some of the biggest hurdles for the industry. Although legalization at the federal level opens up the products for additional taxes, it also allows for much needed banking and normalized commerce that could add to the industry’s growth and profitability. 

 

Suggested Reading:

Will Federal Law Surrounding Cannabis be Changed?

The Future of Cannabis Crosses Many Industries

Marijuana and Sports, Where Officials Stand

Clarence Thomas Statement on Half-in/Half-out Marijuana Laws

 

Sources:

Cannabis Administration
and Opportunity Act

https://www.bloomberg.com/news/articles/2021-03-31/schumer-pushes-senate-on-pot-legalization-as-states-leap-ahead

 

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Esports Entertainment Group Completes Acquisition of Bethard, Adding Swedish and Spanish Licensed Gaming Business

 

Bethard, the B2C business of Gameday Group plc, generated $31M net gaming revenues in 2020 GMBL raised Fiscal 2022 revenue guidance to $100M-$105M as result of the transaction

Newark, New Jersey–(Newsfile Corp. – July 14, 2021) – Esports Entertainment Group, Inc. (NASDAQ: GMBL) (NASDAQ: GMBLW) (or the “Company”), an esports entertainment and online gambling company, is pleased to announce the closing of the Company’s acquisition of Gameday Group’s B2C business, operating under the ‘Bethard’ brand by Bethard Group Limited (“Bethard”), a fast-growing sports betting operator that generated $31 million in revenue in 2020. As a result of transaction, Esports Entertainment Group raised its fiscal 2022 revenue guidance to $100 million to $105 million.

“This is another great addition for Esports Entertainment Group that substantially increases our revenue and available markets,” commented Grant Johnson, CEO of Esports Entertainment Group. “We will gain two new gaming licenses from this transaction, including one in the strategically important Swedish market. With these additions, we’ll have a total of 6 tier one licenses globally.”

Bethard is an iGaming company that offers sports betting and casino games online. The company was founded in 2012 and consists of a team of passionate individuals who shares a vision of taking sports betting and casino to the next level. Bethard has a strong focus on responsible gambling with best-in-class compliance functions in order to act properly and in a sustainable way in regulated markets. The company is based in St. Julians, Malta.

The transaction includes a EUR 16 mil ($19.5 mil) cash payment and a 12% net gaming revenue share for two years.

According to ResearchAndMarkets.com, the global gaming market reached a value of $167.9 billion in 2020 and is forecasted to grow at a 9.2% CAGR through 2026, reaching $287.1 billion.

About Esports Entertainment Group

Esports Entertainment Group is a full stack esports and online gambling company fueled by the growth of video-gaming and the ascendance of esports with new generations. Our mission is to help connect the world at large with the future of sports entertainment in unique and enriching ways that bring fans and gamers together. Esports Entertainment Group and its affiliates are well-poised to help fans and players to stay connected and involved with their favorite esports. From traditional sports partnerships with professional NFL/NHL/NBA/FIFA teams, community-focused tournaments in a wide range of esports, and boots-on-the-ground LAN cafes, EEG has influence over the full-spectrum of esports and gaming at all levels. The Company maintains offices in New Jersey, the UK and Malta. For more information visit www.esportsentertainmentgroup.com.

FORWARD-LOOKING STATEMENTS

The information contained herein includes forward-looking statements. These statements relate to future events or to our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond our control and which could, and likely will, materially affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects our current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to our operations, results of operations, growth strategy and liquidity. We assume no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future. The safe harbor for forward-looking statements contained in the Securities Litigation Reform Act of 1995 protects companies from liability for their forward-looking statements if they comply with the requirements of the Act.

Contact:

U.S. Investor Relations
RedChip Companies, Inc.
Dave Gentry
407-491-4498
dave@redchip.com

Media & Investor Relations Inquiries
Jeff@esportsentertainmentgroup.com

 

PsyBio Therapeutics Announces Uplisting to OTCQB Venture Market

 

OXFORD, Ohio and COCONUT CREEK, Fla., July 14, 2021 /PRNewswire/ – PsyBio Therapeutics Corp. (TSXV: PSYB) (OTCQB: PSYBF) (“PsyBio” or the “Company“), an intellectual property driven biotechnology company developing novel formulations of psychoactive medications produced by genetically modified bacteria for the treatment of mental health challenges and other disorders, is pleased to announce that its subordinate voting shares (the “Shares“) will commence trading on the OTCQB Venture Market (the “OTCQB“) at the market open on July 14, 2021 under the symbol “PSYBF”.

“Today’s news is an important milestone towards broadening our market presence across the United States as we engage with this significant shareholder audience,” said Evan Levine, CEO of PsyBio. “Listing on the OTCQB positions PsyBio with increased visibility among the U.S. based investment community and improved liquidity for our current and prospective shareholders.”

Additionally, the Company is applying for eligibility for book-entry delivery and depository services of the Depository Trust Company (“DTC“), to facilitate electronic settlement of transfers of its Shares in the United States.  This electronic method of clearing securities expedites the receipt of stock and cash and accelerates the settlement process for investors. DTC eligibility will help enhance the Company’s potential investor base and offer a more convenient trading experience for current and future shareholders while enhancing the liquidity of the Shares on the OTCQB.

The Shares will continue to trade on the TSX Venture Exchange (the “TSXV“) under the symbol “PSYB” and on the Frankfurt Stock Exchange under the symbol “PSYB.F”.

About PsyBio Therapeutics Corp.

PsyBio Therapeutics is an intellectual property driven biotechnology company developing novel formulations of psychoactive medications produced by genetically modified bacteria for the treatment of mental health challenges and other disorders. The team has extensive experience in drug discovery based on synthetic biology and metabolic engineering as well as clinical and regulatory expertise progressing drugs through human studies and regulatory protocols. Research and development is currently ongoing for naturally occurring psychoactive tryptamines originally discovered in different varieties of hallucinogenic mushrooms, other tryptamines and phenethylamines and combinations thereof. The Company is also researching and developing new non-naturally occurring molecular structures which may have unique therapeutics properties.

About OTCQB

The OTCQB, operated by OTC Markets Group Inc., is designed for developing and entrepreneurial companies in the United States and abroad. Companies must be current in their financial reporting and undergo an annual verification and management certification process, including meeting a minimum bid price and other financial conditions. With more compliance and quality standards, the OTCQB provides investors improved visibility to enhance trading decisions. The OTCQB is recognized by the United States Securities and Exchange Commission as an established public market providing public information for analysis and value of securities.

Cautionary Note Regarding Forward-Looking Statements

This press release contains statements that constitute “forward-looking information” (“forward-looking information“) within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking information and are based on expectations, estimates and projections as at the date of this news release. Any statement that discusses predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as “expects”, or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”, “believes” or “intends” or variations of such words and phrases or stating that certain actions, events or results “may” or “could”, “would”, “might” or “will” be taken to occur or be achieved) are not statements of historical fact and may be forward-looking information.

In disclosing the forward-looking information contained in this press release, the Company has made certain assumptions, including that: PsyBio will obtain DTC eligibility for its Shares; PsyBio will be successful in discovering new valuable target molecules; PsyBio will be successful in obtaining Investigational New Drug Applications and will be able to obtain all necessary approvals for clinical trials; PsyBio’s technology will be safe and effective; and that drug development involves long lead times, is very expensive and involves many variables of uncertainty. Although the Company believes that the expectations reflected in such forward-looking information are reasonable, it can give no assurance that the expectations of any forward-looking information will prove to be correct. Known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information. Such factors include, but are not limited to: compliance with extensive government regulations; domestic and foreign laws and regulations adversely affecting PsyBio’s business and results of operations; decreases in the prevailing process for psilocybin and nutraceutical products in the markets in which PsyBio operates; the impact of COVID-19; and general business, economic, competitive, political and social uncertainties. Accordingly, readers should not place undue reliance on the forward-looking information contained in this press release. Except as required by law, the Company disclaims any intention and assumes no obligation to update or revise any forward-looking information to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting such forward-looking information or otherwise.

PsyBio makes no medical, treatment or health benefit claims about PsyBio’s proposed products. The U.S. Food and Drug Administration (“FDA“) or other similar regulatory authorities have not evaluated claims regarding psilocybin and other next generation psychoactive compounds. The efficacy of such products has not been confirmed by FDA-approved research. There is no assurance that the use of psilocybin and other psychoactive compounds can diagnose, treat, cure, or prevent any disease or condition. Vigorous scientific research and clinical trials are needed. PsyBio has not conducted clinical trials for the use of its intellectual property. Any references to quality, consistency, efficacy and safety of potential products do not imply that PsyBio verified such in clinical trials or that PsyBio will complete such trials. If PsyBio cannot obtain the approvals or research necessary to commercialize its business, it may have a material adverse effect on the PsyBio’s performance and operations.

The TSXV has neither approved nor disapproved the contents of this news release. Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.

SOURCE PsyBio Therapeutics Corp.

	Image Credit: Matheus Bertelli (Pexels)

Will Investors Experience a Quicker High in Psychedelics as Cannabis Creates the “Model”?

 

Will the legalization of psychedelic drugs for medical and recreational use unfold rapidly, similar to states where marijuana laws have changed? This is a question many investors, business owners, would-be business owners, stressed, and would-be recreational users are asking. There are already definable hints as to the answer to this question; many of them are presented here.

Short History of Legalization

A number of U.S. cities decriminalized the possession of plant- and fungi-based psychedelics, including psilocybin mushrooms, just a couple of years ago (2019). The first was Denver, CO, in 2019. The first state to legalize psilocybin “magic mushrooms” for therapeutic use was Oregon. This was a voter lead move during the 2020 November election. When all the ballots were counted, voters had approved the psychedelic substance and also approved a separate measure to legalize possession of all drugs. California may soon follow Oregon. On June 1, their state Senate approved a bill that would allow possession and personal use of various psychedelic substances which include: psilocybin, LSD, ketamine, DMT, MDMA, mescaline, and ibogaine. The measure has not yet been voted on by the state Assembly. Whether it will be approved by the Assembly and then signed by the Governor is not certain.

 

 

Why Now?

The impetus for this new momentum in psychedelics is twofold.

First, there is solid science and growing data identifying therapeutic uses for psilocybin and other psychedelic drugs. The progression and results of the data are such that the Food and Drug Administration (FDA) has granted psilocybin ” breakthrough therapy” status. This designation provides a green light to those looking to research its use for “serious conditions.” This led to Johns Hopkins University, in late 2019 to launch the “Center for Psychedelics and Consciousness Research.” The Center studies how psychedelic compounds affect our brains.

Second, decades of fighting the “war on drugs” has done little to reduce drug use, while it has filled prisons. It can be argued that prison time genuinely ruins lives, while the impact of some drugs they are doing time for is still unknown. The “First Step Act” signed by President Trump in 2018 brought attention to this as the act reduces sentences for certain drug crimes.

 

Changes Around the U.S.

While the California Senate and a majority of Oregon voters have taken the most notable steps, other states have been experimenting with the idea of reducing the burden on their legal system while potentially opening the door to breakthrough therapies.  The path forward for these states is largely in the early stage of “studies” to determine position. The more significant steps by states are outlined below:

• New York – Assemblywoman Linda Rosenthal introduced a bill on June 1 to create a “Psychedelic Research Institute.” Its initial findings are due by Dec. 1, 2021.

• Connecticut – Governor Ned Lamont signed a bill on June 7, 2021, to permit psilocybin research in his state. The bill calls for the creation of a “working group” charged with reporting its findings to the Connecticut general assembly by Jan. 1, 2022.

• Texas – Governor Greg Abbott allowed a bill authorizing the study of psilocybin to become law without his signature on June 7, 2021. One driver of the decision is the preliminary findings that psilocybin has been effective in treating military veterans with post-traumatic stress disorder.

• New Jersey – Governor Phil Murphy signed a bill in February 2021 lowering the penalties for possession of up to one ounce of mushrooms in his state.

• Maine – the House of Representatives on June 17, 2021, approved a bill to decriminalize possession of all currently illicit drugs. That measure has not yet gone to the state Senate for a vote.  

 

Will Psychedelics Be the “New Cannabis” for Investors?

Investors got their first dose of once illicit substances with cannabis and recognize the potential highs. For speculators to view psychedelics in a similar vein and anticipate desirable results would seem to follow – and the numbers are somewhat exhilarating.

A study, released in June 2020 by Data Bridge Research, predicted that a new “psychedelics sector” could grow at a CAGR of 16.3% and continue to become a $6.85 billion industry by 2027. Considering there is no indication as to whether the California or Maine legislation will move beyond its state’s Senate and be signed makes such predictions seem dubious. However, it is certain that there is a higher level of acceptance by today’s leaders and the public at large. It is also expected that like other new industries, moving from “counterculture” to mainstream will be a long strange trip full of unexpected realizations and maybe substantial reward.

Suggested Reading:

Acceptance of Psychedelics for Wellness and Recreation

The Future of Cannabis Crosses Many Industries

The Future of Cannabis Crosses Many Industries

Managing Investment Portfolio Risk

 

Sources:

https://au.finance.yahoo.com/news/mushroom-market-size-worth-95-073500098.html

https://thenewsstation.com/texas-to-study-psychedelics-even-as-gov-abbott-refused-to-sign-measure/

https://sd11.senate.ca.gov/news/20210218-senator-wiener-introduces-legislation-decriminalize-possession-and-personal-use

https://blogs.findlaw.com/law_and_life/2021/06/will-psychedelic-drugs-become-legal.html?DCMP=cons_times:nwl:2021july:gen:body

https://www.openpr.com/news/2068844/psychedelic-drugs-market-2020-to-grow-at-16-3-cagr-by-2027

https://drugpolicy.org/press-release/2018/12/president-trump-signs-first-step-act-law

https://www.prnewswire.com/news-releases/psychedelic-drugs-market-projected-to-reach-6-85-billion-by-2027–301082594.html

 

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