Toronto, Ontario–(Newsfile Corp. – September 6, 2022) – Psyched Wellness Ltd. (CSE: PSYC) (OTCQB: PSYCF) (FSE: 5U9) (the “Company” or “Psyched“), a life sciences company focused on the production and distribution of health and wellness products derived from the Amanita Muscaria mushroom, is pleased to announce that the Company: (i) has signed two long term supply agreements for Amanita Muscaria mushrooms, which should supply the Company with enough raw material for its projected 2023 production forecast, (ii) has onboarded its online ecommerce store with a new payment processor, Zank Payments, and (iii) anticipates its first Amanita Muscaria mushroom-derived product, ‘Calm’, to launch in the coming months, which is available for pre-order at shop.psyched-wellness.com.
Over the past couple of months, the Company has signed long term supply agreements with Polish and Lithuanian suppliers of Amanita Muscaria mushrooms (each a “Supplier“). After sampling a number of batches from each Supplier using a high performance liquid chromatography method at a third-party lab, the Company and each Supplier entered into long term supply agreements to secure the Company’s projected raw material needs for its projected commercial production for the fiscal year 2023.
The Company intends to purchase mushrooms from the Suppliers in batches of 300-500 kg (each a “Batch“). Each Batch will be tested for toxicity, quality, and potency to ensure it complies with the Company’s strict standards for harvesting, handling, storing, drying and shipping. Pursuant to the terms of each supply agreement, a certain percentage of the Batch will be paid in advance in order for each Supplier to make the necessary arrangements to prepare for the shipments, with the remainder to be paid only after positive lab results are yielded from Batch processing. Any Batch that does not comply with the Company’s strict standards will not be utilized by the Company, and payment will not be owed to the Supplier on that portion of the Batch.
“Adding two additional high-quality Suppliers of raw material is a key development for the commercialization of our products.” explained David Shisel, chief operating officer of the Company. “After working with these Suppliers, we found them to be very professional and the raw material they’ve previously supplied has yielded very positive results, which comply with our strict standards. These supply agreements will secure enough raw material for the Company’s projected 2023 production forecast, moving the Company from a research and development company to a consumer packaged goods company. Concurrently, the Company is working to build its own team of foragers in the United States of America to source raw material locally within North America.”
New Payment Processor
Jeffrey Stevens, chief executive officer of the Company, stated, “as the first public company to launch a product derived from the Amanita Muscaria mushroom for human consumption in the United States of America, we have the unique opportunity to be pioneers, blazing a path forward in the commercial landscape. With this opportunity comes some challenges that require both a calm and nimble response. When our previous payment platform provider suspended our service, we quickly identified groups that work with companies selling alternative products. Zank Payments proved to be able to secure banking partners with an infrastructure that plugged into our existing ecommerce store to support our needs and growth.”
Zank Payments is a well-established credit card processing brokerage. With its numerous bank partners, Zank Payments has the ability to approve 99% of their merchants. Specific banks have appetites for specific industries. Zank Payments works with all of them to ensure customers have the ability to accept credit and debit cards for payment.
Psyched is pleased to announce that it anticipates launching its first Amanita Muscaria mushroom-derived product, ‘Calm’, in the coming months. To pre-order, Calm please visit shop.psyched-wellness.com.
For further information, please contact:
Psyched Wellness Ltd.
Chief Executive Officer
Email: [email protected]
Neither the Canadian Securities Exchange nor its Regulation Services Provider have reviewed or accept responsibility for the adequacy or accuracy of this release.
Psyched is a Canadian-based health supplements company dedicated to the distribution of mushroom-derived products and associated consumer packaged goods. The Company’s objective is to create premium mushroom-derived products that have the potential to become a leading North American brand in the emerging functional food category. The Company is in the process of developing a line of Amanita Muscaria-derived water-based extracts, teas and capsules designed to help with three health objectives: promote stress relief, relaxation and assist with restful sleeping.
Cautionary Statement Regarding Forward Looking Information
This press release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. These statements relate to future events or future performance. The use of any of the words “could”, “intend”, “expect”, “believe”, “will”, “projected”, “estimated” and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the Company’s current belief or assumptions as to the outcome and timing of such future events. The forward-looking information and forward-looking statements contained herein include, but are not limited to, statements regarding: the Company’s business objectives and milestones and the anticipated timing of, and costs in connection with, the execution or achievement of such objectives and milestones (including, without limitation, proposed acquisitions and future product launches); the Company’s future growth prospects and intentions to pursue one or more viable business opportunities; the development of the Company’s business, brands and future activities following the date hereof; expectations relating to market size and anticipated growth in the jurisdictions within which the Company may from time to time operate or contemplate future operations; expectations with respect to economic, business, regulatory and/or competitive factors related to the Company or the mushroom and psychedelics industries generally; the impact of the COVID-19 pandemic on the Company’s current and future operations; the market for the Company’s current and proposed product offerings, as well as the Company’s ability to capture market share; the Company’s strategic investments and capital expenditures, and related benefits; the distribution methods expected to be used by the Company to deliver its product offerings; the competitive landscape within which the Company operates and the Company’s market share or reach; the performance of the Company’s business and the operations and activities of the Company; the Company making meaningful increases to its revenue profile; the Company’s ability to generate cash flow from operations and from financing activities; the Company’s ability to obtain, maintain, and renew or extend, applicable authorizations, including the timing and impact of the receipt thereof; the realization of cost savings, synergies or benefits from the Company’s recent and proposed acquisitions, and the Company’s ability to successfully integrate the operations of any business acquired within the Company’s business; the Company’s intention to devote resources to the protection of its intellectual property rights, including by seeking and obtaining registered protections and developing and implementing standard operating procedures; the ability of the Company to develop Amanita Muscaria mushroom-derived products; the safety of Amanita Muscaria consumption and the safety and purity of any extracts thereof; the uses and potential benefits of Amanita Muscaria; the Company’s anticipated timeline and process for meeting production and commercialization, including the launch of Calm; the Company becoming a leading North American brand in the emerging functional food category; the Company receiving the Batches on the timelines and in the quantities as outlined herein; the quality and potency of the Amanita Muscaria mushrooms received and each Batch being complying with the Company’s strict standards; the Company’s ability to reach commercialization and move from a research and development company to a consumer packaged goods company; and the Company developing North American forager operations to source raw materials.
Forward-looking information in this press release are based on certain assumptions and expected future events, namely: current and future members of management will abide by the Company’s business objectives and strategies from time to time established by the Company; the Company will retain and supplement its board of directors and management, or otherwise engage consultants and advisors having knowledge of the industries (or segments thereof) within which the Company may from time to time participate; the Company will have sufficient working capital and the ability to obtain the financing required in order to develop and continue its business, brands and operations; the Company will continue to attract, develop, motivate and retain highly qualified and skilled consultants and/or employees, as the case may be; no adverse changes will be made to the regulatory framework governing psychedelics, mushroom-derived products, taxes and all other applicable matters in the jurisdictions in which the Company conducts business and any other jurisdiction in which the Company may conduct business in the future; the Company will be able to generate cash flow from operations, including, where applicable, through the distribution and sale of mushroom-derived products; the Company will be able to execute on its business strategy as anticipated; the Company will be able to meet the requirements necessary to obtain and/or maintain authorizations required to conduct the business; general economic, financial, market, regulatory, and political conditions, including the impact of the COVID-19 pandemic, will not negatively affect the Company or its business; the Company will be able to successfully compete in the mushroom and psychedelic industries; mushroom prices will not decline materially; the Company will be able to source raw materials; the Company will be able to effectively manage anticipated and unanticipated costs; the Company will be able to maintain internal controls over financial reporting and disclosure, and procedures in order to ensure compliance with applicable laws; the Company will be able to conduct its operations in a safe, efficient and effective manner; general market conditions will be favourable with respect to the Company’s future plans and goals; the Company will complete its proposed acquisitions; the Company will make meaningful increases to its revenue profile; the Company will meet its anticipated timeline and process for production and commercialization, including the launch of Calm; the Company will become a leading North American brand in the emerging functional food category; the Company will receive the Batches on the timelines and in the quantities as outlined herein; the quality and potency of the Amanita Muscaria mushrooms received and each Batch will comply with the Company’s strict standards; the Company will reach commercialization and move from a research and development company to a consumer packaged goods company; the Company will become a consumer packaged goods company; the supply agreements will meet the Company’s projected 2023 production forecast needs; and the Company will develop North American forager operations to source raw materials.
These statements involve known and unknown risks, uncertainties and other factors, which may cause actual results, performance or achievements to differ materially from those expressed or implied by such statements, including but not limited to: the Company’s inability to attract and retain qualified members of management to grow the Company’s business, brands and its operations; unanticipated changes in economic and market conditions (including changes resulting from the COVID-19 pandemic) or in applicable laws; the impact of the publications of inaccurate or unfavourable research by securities analysts or other third parties; the Company’s failure to complete future acquisitions or enter into strategic business relationships; interruptions or shortages in the supply of Amanita Muscaria mushrooms available to support the Company’s operations from time to time; unanticipated changes in the mushroom and psychedelic industries in the jurisdictions within which the Company may from time to time conduct its business and operations, including the Company’s inability to respond or adapt to such changes; the Company’s inability to secure or maintain favourable supply arrangements or the required authorizations necessary to conduct the business and operations and meet its targets; risks relating to projections of the Company’s operations; the Company’s inability to effectively manage unanticipated costs and expenses, including costs and expenses associated with product recalls and judicial or administrative proceedings against the Company; risk that the Company will be unable to increase its revenue profile, but that it will decease and/or plateau; risks with respect to the safety of Amanita Muscaria consumption and the safety and purity of any extracts thereof; the risk that there is no potential benefit of Amanita Muscaria consumption; risks that the Company will be unable to meet their timeline and/or follow their process for production and commercialization, including the launch of Calm; the Company will become a leading North American brand in the emerging functional food category; risk that the Company will not receive the Batches on the timelines and in the quantities as outlined herein or at all; risk that the quality and potency of the Amanita Muscaria mushrooms received and each Batch will not comply with the Company’s strict standards and not be able to be utilized; risk that the Company will be unable to reach commercialization and move from a research and development company to a consumer packaged goods company; risk that the Company will not be able to become a consumer packaged goods company; risk that the supply agreements will be unable meet the Company’s projected 2023 production forecast needs; risk that the Company will be unable to develop North American forager operations to source raw materials and be reliant on foreign supply; and risks that the Company will not become a leading North American brand in the emerging functional food category.
Readers are cautioned that the foregoing list is not exhaustive. Readers are further cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated.
Forward-looking statements contained in this press release are expressly qualified by this cautionary statement and reflect the Company’s expectations as of the date hereof and are subject to change thereafter. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, estimates or opinions, future events or results or otherwise or to explain any material difference between subsequent actual events and such forward-looking information, except as required by applicable law.
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