PharmAla Biotech and Psyched Wellness Secure Funding for Research and Development

LOS ANGELES– In the ever-evolving landscape of psychedelic drug companies, securing funding has become increasingly challenging. However, two firms, PharmAla Biotech Holdings Inc. and Psyched Wellness Ltd., have recently announced successful rounds of funding, allowing them to advance their research and development efforts.

PharmAla Biotech, a prominent player in the psychedelic drug industry, revealed plans for a non-brokered private placement to raise capital. The company aims to offer a minimum of 3,333,333 units and a maximum of 16,666,666 units at a price of $0.30 per unit, generating gross proceeds ranging from $1 million to $5 million. Currently trading at $0.33 per share, PharmAla is attracting investor attention. The funds raised from this offering will primarily be utilized to bolster the company’s MDMA and psilocybin inventory, supporting future sales. Additionally, a portion of the proceeds will be allocated towards phase 2 clinical trials and general working capital needs. The offering will be available to purchasers residing in Canada, excluding Quebec, and other qualifying jurisdictions under the listed issuer financing exemption.

To incentivize eligible finders, PharmAla may compensate them under the LIFE Offering by offering a cash commission of up to 7% of the total gross proceeds. Furthermore, finder’s warrants equivalent to 7% of the total units issued under the LIFE Offering may also be issued.

Earlier this year, PharmAla reported its earnings for the quarter ending February, disclosing a cash balance of $731,722. Acknowledging its reliance on profitable operations or additional financing, the company recognizes the significance of securing funding to sustain its operations and expansion plans.

Psyched Wellness, another notable player in the psychedelics sector, has successfully closed the initial tranche of its non-brokered private placement. The company issued 9,585,000 units at a price of C$0.07 per unit, generating gross proceeds of approximately US$500,000 (C$670,950). This achievement prompted the signing of an investor rights agreement between Psyched Wellness, Gotham Green Fund III L.P., and Gotham Green Fund III (Q) L.P., replacing the earlier term sheet. Under this agreement, Gotham Green Fund will have the right to designate one director to join Psyched Wellness’s board, with Harrison Aaron currently filling that role. In the event that the second tranche closes, Gotham Green Fund will have the opportunity to add two additional board members.

Harrison Aaron, expressing confidence in Psyched Wellness’s groundbreaking work over the past four years, emphasized the company’s development of its proprietary extract of the federally legal amanita muscaria mushroom, known as AME-1. Through extensive studies and United States GRAS certification, Psyched Wellness has demonstrated the safety of AME-1 for human consumption. Aaron stated that with the proposed investment, the company aims to fund and facilitate the nationwide rollout of mainstream consumer products centered around AME-1. The investment from Gotham Green Partners, once finalized, will provide the necessary capital infusion of approximately US$7,500,000 (C$10,217,250) to support Psyched Wellness’s next stages of growth. This substantial investment underscores the considerable opportunities both parties recognize in the mainstream consumer packaged goods space for AME-1 and other Amanita Muscaria products.

In addition to securing funding, Psyched Wellness also solidified new employment agreements with Chief Executive Officer Jeffrey Stevens and Chief Operating Officer David Shisel, further strengthening its leadership team.