Psyched Wellness completes C$859,653 private placement and debt settlement

Psyched Wellness Ltd. (CSE: PSYC) (OTCQB: PSYCF) (FSE: 5U9) closed the first tranche of a non-brokered private placement for gross proceeds of C$859,653.47 and completed a shares-for-debt transaction, according to a company statement.

The Toronto-based life sciences company issued 56,930,693 common shares at C$0.0101 per share and an equal number of warrants at C$0.005 each. The warrants allow holders to purchase additional shares at C$0.0051 per share within 60 months of the closing date. Gotham Green Fund III, L.P. and affiliated entities led the private placement.

Separately, Psyched Wellness issued 60,968,317 common shares at C$0.0101 per share to Zerkalo, LLC to settle US$450,000 in debt for consultation services under an April 2024 master service agreement.

Following these transactions, the company has 406,715,844 common shares outstanding. The investor group's voting interest increased from approximately 43.1% to 44.6%.

Under an investor rights agreement, the investor group can nominate two directors and two independent directors to the company's board, which will have no more than seven directors with an independent majority. The investor group also received an 18-month right of first refusal on future financing transactions.

Trevor Mayer resigned as a director effective March 20, 2026, upon closing of the private placement. The company stated it will use net proceeds for working capital as permitted under Canadian Securities Exchange policies.

All securities issued carry a four-month-plus-one-day hold period and applicable U.S. Securities Act legends. Psyched Wellness focuses on producing and distributing Amanita Muscaria-derived health and wellness products.

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