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SOTM Update 2026-01-06

Picture of AdvisorShares By   ·  4 minute read
Today's Stocks on the Move is for PSIL – AdvisorShares Psychedelics ETF and its holdings in Bright Minds Biosciences Inc. (DRUG), Neuronetics, Inc. (STIM), and COMPASS Pathways plc (CMPS). 
 
Bright Minds Biosciences Inc. (DRUG)  – 4.41% Weight
  • Recent news: Bright Minds just announced highly positive topline Phase 2 results for BMB 101 in drug resistant absence seizures and developmental and epileptic encephalopathies, showing a 73.1% median reduction in absence seizures and a 63.3% median reduction in major motor seizures, along with a 90% mean increase in REM sleep and an acceptable safety profile. The company is now preparing global registrational trials in 2026 and plans to initiate a Prader–Willi sydrome program in Q1 2026, with multiple data presentations scheduled throughout the year.
  • Why it matters for PSIL: DRUG is now one of the clearest late stage epilepsy plays in the psychedelic inspired CNS space; successful registrational trials could position BMB 101 as a first in class 5 HT2C therapy for refractory seizures. For PSIL, this readout meaningfully de risks a key holding and adds conviction to the ETF’s strategy of backing serotonergic CNS platforms with both neurology and psychiatric upside.
Neuronetics, Inc. (STIM)  – 2.11% Weight
  • Recent news: Neuronetics’ Q3 2025 results delivered US$37.3 million in revenue, up 11% on an adjusted pro forma basis but about 2% below consensus, and an adjusted EPS loss of US$0.13 that missed estimates by two cents, marking the company’s fourth straight quarter of negative EPS surprises. Gross margin fell to 45.9% as the Greenbrook clinic business weighed on mix, net loss was US$9.4 million, and management disclosed CEO Keith Sullivan will retire by June 30, 2026, even as it reiterated a medium term goal of achieving cash flow breakeven.
  • Why it matters for PSIL: STIM provides PSIL with complementary exposure to device based neuromodulation for depression, but its persistent losses, margin compression, and leadership transition highlight the operational risks of scaling novel mental health technologies. The small position size reflects PSIL’s more cautious stance here relative to higher conviction, late stage drug developers in the portfolio.
COMPASS Pathways plc (CMPS)  – 8.39% Weight
  • Recent news: Compass Pathways has scheduled a January 7, 2026 webinar to detail commercial preparations for COMP360 in treatment resistant depression and outline the planned late stage program in post traumatic stress disorder, including care pathway design and provider economics for multi hour psychedelic assisted therapy sessions. The company recently reiterated its Phase 3 timeline in TRD and emphasized that it is investing now in clinic partnerships, payer engagement, and training models to support a potential launch in the second half of the decade.
  • Why it matters for PSIL: CMPS remains one of PSIL’s highest conviction holdings and a bellwether for the entire psychedelic field; its TRD and PTSD programs could establish COMP360 as the first broadly adopted psilocybin based treatment. Progress on commercial infrastructure, not just clinical data, is critical for turning trial success into revenue, and PSIL’s sizable allocation gives the ETF meaningful upside if Compass executes on both fronts.

Data as of 1/5/2026. Holdings subject to change. For a list of PSIL's holdings, click here.

— For Institutional Investor Use Only. Not for Public Distribution —
 
Before investing you should carefully consider the Fund’s investment objectives, risks, charges and expenses. This and other information is in the prospectus and summary prospectus, a copy of which may be obtained by visiting the Fund’s website at www.AdvisorShares.com. Please read the prospectus carefully before you invest. Foreside Fund Services, LLC, distributor.
 
There is no guarantee that the Fund will achieve its investment objective. An investment in the Fund is subject to risk, including the possible loss of principal amount invested.   
 
Psychedelic drugs, also known as hallucinogens, are a group of substances, including psilocybin, that are used to change and enhance sensory perceptions, thought processes, and energy levels. Psychedelic medicines, therapeutics, and healthcare treatments may be used in the treatment of illnesses such as depression, addiction, anxiety and post-traumatic stress disorder. Psychedelic medicine companies include life sciences companies having significant business activities in, or significant exposure to, the psychedelics industry including producers or distributors of psychedelic medicines, biotechnology companies engaged in research and development of psychedelic medicines, and companies that are part of the supply chain for psychedelics.   
     
Psychedelics Companies Risk. Psychedelics companies are subject to various laws and regulations that may differ at the state/local and federal level. These laws and regulations may significantly affect a psychedelics company’s ability to secure financing, impact the market for psychedelics and business sales and services, and set limitations on psychedelics use, production, transportation, and storage. There can be no guarantees that such approvals or administrative actions will happen or be favorable for psychedelics companies, and such actions may be subject to lengthy delays, and may require length and expensive clinical trials. Additionally, therapies containing controlled substances may generate public controversy. Political and social pressures and adverse publicity could lead to delays in approval of, and increased expenses for, companies and any future therapeutic candidates they may develop. All of these factors and others may prevent psychedelics companies from becoming profitable, which may materially affect the value of certain Fund investments. In addition, psychedelics are subject to the risks associated with the biotechnology and pharmaceutical industries. 
   
In Canada, certain psychedelic drugs, including psilocybin, are classified as Schedule III drugs under the Controlled Drugs and Substances Act (“CDSA”) and, as such, medical and recreational use is illegal under Canadian federal laws. In the United States, certain psychedelic drugs, including psilocybin, are classified as Schedule I drugs under the Controlled Substances Act (“CSA”) and the Controlled Substances Import and Export Act (the “CSIEA”) and, as such, medical and recreational use is illegal under the U.S. federal laws. There is no guarantee that psychedelic drugs or psychedelic-inspired drugs will ever be approved as medicines in either jurisdiction.   
   
In the United States, scheduling determinations by the Drug Enforcement Agency (“DEA”) are dependent on Food and Drug Administration (“FDA”) approval of a substance or a specific formulation of a substance. Unless and until psilocybin, psilocin, or other psychedelics-based products receive FDA approval, such products may be prohibited from sale, which could limit the growth opportunities for certain portfolio companies of the Fund. Even if approved by the FDA, the manufacture, importation, exportation, domestic distribution, storage, sale, and legitimate use of such products will continue to be subject to a significant degree of regulation by the DEA. 
 
Security prices of small cap companies may be more volatile than those of larger companies and therefore the Fund’s share price may be more volatile than those of funds that invest a larger percentage of their assets in securities issued by larger-cap companies. These risks are even greater for micro-cap companies.   
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