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SOTM Update 2026-02-17

Picture of AdvisorShares By   ·  6 minute read

Today’s SOTM highlights PSIL holdings: RLMD, CMPS, NEUP, ATAI, HELP, ENVB. Combined, these positions represent over 40% portfolio weight for PSIL.

Relmada Therapeutics,Inc. (RLMD) – 6.16% Weight

  • Recent news: Relmada previously sufferedmultiple late‑stage failures for its lead depression drug REL‑1017, including aPhase 3 program where high placebo response caused key trials to miss theirprimary endpoints, leading to a sharp collapse in the share price and strategicuncertainty. In December 2024 the company announced it would discontinue thetwo planned late‑stage MDD studies for REL‑1017, explore strategic alternativesfor the business, and pivot focus to earlier‑stage metabolic asset REL‑P11,with only about $54 million in cash and a very small market cap reported atthat time.

  • Why it matters for PSIL: RLMD gives PSIL exposure to a highly volatile, event‑driven neuropsychiatric biotech where legacy trial failures and a strategic reset leave substantial upside optionality if new programs like REL‑P11 progress, but also significant risk if funding or partnering prove difficult. For PSIL, the position reflects a smaller, higher‑risk name whose fortunes hinge on management’s ability to monetize assets or reignite the pipeline after late‑stage disappointment.

COMPASS Pathways plc(CMPS) – 9.75% Weight

  • Recent news: On February 17, 2026,COMPASS announced that its second Phase 3 trial of COMP360 psilocybin therapy for treatment‑resistant depression met its primary endpoint, marking a second pivotal win and sending the stock up more than 30% intraday. The company plans to submit an NDA to the FDA later in 2026, and several analysts raised price targets into the low‑ to mid‑teens, positioning COMPASS as the potential first FDA‑approved psilocybin‑based therapy for treatment‑resistant depression.

  • Why it matters for PSIL: CMPS is one of PSIL’s core holdings and the sector bellwether for psychedelic‑based depression treatment, with dual Phase 3 successes creating a clear regulatory and commercialization path. A successful NDA and launch would validate the broader therapeutic category and could meaningfully drive PSIL’s performance as investors re‑rate the entire psychedelic complex.

Neuphoria TherapeuticsInc. (NEUP) – 3.01% Weight

  • Recent news: Neuphoria’s Phase 3 AFFIRM‑1trial of BNC‑210 for social anxiety disorder failed to meet its primary or key secondary endpoints in October 2025, triggering a roughly 67% after‑hours stock decline and raising fresh questions about the commercial viability of that program. At the same time, the company has highlighted a Merck‑funded partnership for MK‑1167 in Alzheimer’s disease with up to $450 million in potential milestones, reported cash of $14.2 million as of mid‑2025 (funding operations into 2027), and is continuing a strategic alternatives review after pausing some PTSD‑related R&D spend.

  • Why it matters for PSIL: NEUP offers PSIL exposure to a neuropsychiatric pipeline where a major late‑stage setback has depressed the valuation but non‑dilutive partnership optionality and other CNS programs remain. The mix of failed Phase 3 data, finite cash, and strategic review dynamics makes NEUP a higher‑risk, binary‑leaning component within PSIL’s diversified psychedelic and mental‑health basket.

ATAI Life Sciences N.V.(ATAI) – 10.77% Weight

  • Recent news: ATAI’s leadership has described the company as entering 2026 with “meaningful momentum,” planning to initiate a Phase 3 program for key candidate BPL‑003 in treatment‑resistant depression in Q2 2026 following an End‑of‑Phase 2 FDA meeting and to run an additional open‑label Phase 2 cohort with data expected in Q4 2026. ATAI continues to advance a diversified portfolio of psychedelic and non‑psychedelic mental‑health assets, positioning itself as a platform company with multiple shots on goal rather than a single‑asset bet.

  • Why it matters for PSIL: ATAI is PSIL’s largest holding and provides broad, multi‑program exposure to the emerging psychedelic and neuropsychiatric treatment space, with several near‑ and medium‑term catalysts across 2026. Its platform approach can help smooth single‑asset risk while preserving upside if any of its late‑stage programs, including BPL‑003,deliver compelling data and regulatory traction.

Cybin Inc. (HELP) –5.46% Weight

  • Recent news: Cybin’s HELP‑listed shares have moved higher after positive Phase 2a results for a psilocybin‑based depression candidate, even as recent commentary has focused on the company’s increased cash burn—over $100 million in the past year—and a finite cash runway of under two years based on current spending. Recent earnings coverage noted that Cybin missed EPS expectations on continued heavy R&D investment, while at least one major brokerage initiated coverage with a “Buy” rating and a price target significantly above the current share price, citing the depth of its pipeline.

  • Why it matters for PSIL: HELP gives PSIL exposure to a clinical‑stage psychedelic platform with multiple shots on goa and encouraging early‑stage data, but also material financing and execution risk if timelines slip or markets tighten. For PSIL, Cybin functions as a higher‑beta component that can amplify upside on positive trial or regulatory news, while diversification across holdings helps mitigate single‑name downside.

Enveric Biosciences,Inc. (ENVB) – 0.18% Weight

  • Recent news: Enveric recently closed a$1.5 million registered direct offering priced at‑the‑market under Nasdaq rules and separately filed to register about $1.35 million in additional shares under its at‑the‑market program, underscoring its ongoing need for external capital. The company is developing “neuroplastogenic,” non‑hallucinogenic small‑molecule therapeutics for psychiatric and neurological disorders, led by EB‑003, a compound designed to engage 5‑HT2A and 5‑HT1B receptors to deliver fast‑acting, durable antidepressant and anxiolytic effects without a psychedelic experience, and has also expanded its IP portfolio through new patents and licensing deals.

  • Why it matters for PSIL: ENVB is a very small position in PSIL that offers niche exposure to next‑generation, non‑hallucinogenic psychedelic‑adjacent compounds aimed at improving safety and practicality versus classic psychedelics. While its micro‑cap status and recurring equity raises add substantial risk, any meaningful clinical progress or partnering onEB‑003 could generate outsized percentage moves that contribute to PSIL’s optionality at the margin.

 

Data as of 1/17/2026. 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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