Psyched Wellness Names Gotham Green Board Member

Psyched Wellness Ltd. (CSE: PSYC) (OTCQB: PSYCF)  announced that Amanda Galbraith has resigned as a director of the company effective June 19, 2023. She has been replaced with Gotham Green’s Harrison Aaron who was appointed as director effective June 19, 2023.

“Psyched Wellness’s work over the past four years has been ground-breaking, with the company developing its proprietary extract of the federally legal Amanita Muscaria mushroom, AME-1, and proving its safety for human consumption through extensive studies and United States GRAS certification. With this proposed investment, we would aim to fund and facilitate the nationwide rollout of mainstream consumer products centered around AME-1, and we look forward to working closely with the company,” said Harrison Aaron, Principal at Gotham Green Partners.

Gotham Green was allowed to name a board member after Psyched announced that it had 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 for gross proceeds of $500,000, approximately C$670,950, based on an exchange rate of US$1.00 = C$1.3419 as at June 6, 2023, as published on the website of the Bank of Canada. Psyched has said it will use the money for general working purposes.

The board also favors offering a second tranche that will raise $7 million. If tranche two closes, Gotham will have the right to designate two additional directors to become members of the Board who would replace existing Board members.  Gotham could end up having three board members out of a total of seven board members. Nick Kadysh is expected to be named a board member in the next level of additions. Any units bought in tranche two will be subject to a 12 month lockup period.

Going Concern

For the quarter ending February 28, 2023, Psyched Wellness reported a net and comprehensive loss of C$1,012,962 (2022 – C$1,356,433) and negative cash flow from operations of C$814,226 (2022 – C$736,086), and as of that date, its accumulated deficit was C$23,539,182 (November 30, 2022 – $23,679,183). The company’s cash at the end of the quarter had fallen to C$1.6 million. The company’s current liabilities at the time were C$435,207