Psyched Wellness Secures $4.5 Million in Second Tranche of Financing, Aims to Expand Amanita Muscaria Product Line

LOS ANGELES– Psyched Wellness Ltd., A player in the functional mushroom sector, has successfully closed a second tranche of its non-brokered private placement, securing gross proceeds of $4.5 million, as per the company’s recent announcement. This move comes on the heels of the release of its unaudited financial results for the quarter ending May 2023. Collaborating with Gotham Green Partners on this deal, the company intends to channel the newly acquired funds towards working capital and other corporate endeavors.

Currently, Psyched Wellness is immersed in the production and development of a range of products derived from Amanita Muscaria, including water-based extracts, teas, and capsules. These products are designed to address three primary health objectives: facilitating stress relief, promoting relaxation, and aiding in restful sleep. Notably, the company has decided to halt its research and development projects temporarily, concentrating solely on Amanita-related products due to their lesser regulatory restrictions.

Financial Highlights

In a significant leap, Psyched Wellness reported a revenue of $106,731 for the quarter, compared to no revenue during the same period in 2022. However, the cost of goods sold stood at $189,362, resulting in a net loss of $790,028 for the quarter. The company disclosed that the quarter’s expenses amounted to $583,413, with management salaries and consulting fees accounting for $203,046. As of the quarter’s end, the company held $830,079 in cash reserves.

Despite the losses, the company maintains a positive outlook, reporting as a going concern. During the six months leading up to May 31, 2023, Psyched Wellness incurred a net loss of $1,802,990, a slight improvement from the $2,519,935 loss reported in 2022. The company’s accumulated deficit as of the reporting date was $24,329,210.

Strategic Financing and Leadership Changes

This recent financing initiative follows an initial tranche that concluded in June 2023, which netted the company US$500,000. CEO Jeffrey Stevens expressed gratitude towards shareholders for their patience and support, emphasizing that the investment marked a transformative phase for the company. He noted that the collaboration with Gotham Green Partners would bolster the company’s position in the market, facilitating the swift introduction of legal and safe Amanita Muscaria-derived products to consumers in the United States.

In line with the deal, Gotham Green has expanded its influence on Psyched Wellness’ board, appointing Lauren Spikes as a new member, increasing its representation to two seats on the seven-member board. This development followed Terry Booth’s resignation as a director of the company, effective August 31, 2023. Additionally, Gotham Green secured an exclusive agreement for any forthcoming financing deals for the company until November 8, 2023.

Furthermore, Psyched Wellness announced an amended contract with The Shisel, reinstating David Shisel to oversee Chief Operating Officer services for the company.

As Psyched Wellness navigates this pivotal period, the company appears poised to capitalize on its first-mover advantage, potentially revolutionizing the functional mushroom market with its innovative Amanita Muscaria product line.