the chart represents the liquidity positions of the 21 psychedelic sector companies in the viridian value tracker database   we estimated each companys net cash flow position by adding the most recent quarters cash balance to the projected year ahead free cash flow consensus analyst estimates of free cash flow were used if available otherwise the most recent quarters free cash flow cash from operations minus capex was annualized   only one company on the list mindset pharma msstf has positive estimated free cash for 2023 the graph measures how well each companys cash balance covers its projected cash burn   the scale of the companies is drastically different psybio therapeutics psybf has a market cap of about 8m while gh research plc ghrs tops 825m to show the liquidity position on a common basis we divided each value by the companys market cap   for example awakn life science awknf has a value of 156 which indicates that the company is estimated to have a financing need net of their cash on hand of 156 of its market cap  a hefty raise conversely mindset pharma has net cash equal to 80 of its market cap a very comfortable liquidity position   psychedelic companies have raised approximately 215m ytd far above the less than 50m raised in 2021 the acceleration in capital raises indicates the markets fascination with this new subsector   the majority of the group has sufficient cash to fund themselves for the following year   however the nine companies with negative net cash will need to raise a cumulative 80m 27 of the cumulative market cap negative cash flow and challenged liquidity in a riskoff market is a difficult position will the markets fascination with psychedelics be enough to compensate the viridian capital chart of the week highlights key investment valuation and ma trends taken from the viridian cannabis deal tracker the viridian cannabis deal tracker provides the market intelligence that cannabis companies investors and acquirers utilize to make informed decisions regarding capital allocation and ma strategy the deal tracker is a proprietary information service that monitors capital raise and ma activity in the legal cannabis cbd and psychedelics industries each week the tracker aggregates and analyzes all closed deals and segments each according to key metrics   deals by industry sector to track the flow of capital and ma deals by one of 12 sectors  from cultivation to brands to software   deal structure equitydebt for capital raises cashstockearnout for ma status of the company announcing the transaction public vs private   principals to the transaction issuerinvestorlenderacquirer key deal terms pricing and valuation   deals by location of issuerbuyerseller to track the flow of capital and ma deals by state and country   since its inception in 2015 the viridian cannabis deal tracker has tracked and analyzed more than 2500 capital raises and 1000 ma transactions totaling over 50 billion in aggregate value the preceding article is from one of our external contributors it does not represent the opinion of benzinga and has not been edited