Psyched Wellness Upsizes Previously Announced Bought Deal Offering
Toronto, Ontario, January 22, 2021 – Psyched Wellness Ltd. (CSE:PSYC, OTCQB:PSYCF, FRANKFURT:5U9) (the “Company” or “Psyched”) a life sciences company focused on the production and distribution of artisanal functional and psychedelic mushrooms, is pleased to announce that it has agreed to increase the size of its previously announced bought deal private placement led by Canaccord Genuity Corp. (the “Lead Underwriter”). The Lead Underwriter has agreed, on behalf of a syndicate of underwriters (collectively, the “Underwriters”), to purchase, on a bought deal private placement basis, an aggregate of 17,750,000 units of the Company (the “Units”) at a price of C$0.31 per Unit (the “Issue Price”) for aggregate gross proceeds to the Company of C$5,502,500 (the “Offering”).
Each Unit will consist of one common share of the Company (a “Common Share”) and one Common Share purchase warrant (a “Warrant”). Each Warrant will entitle the holder thereof to purchase one Common Share at an exercise price of C$0.43 for a period of 36 months from the Closing Date, subject to a Warrant acceleration right exercisable by the Company if, at any time following the date that is four months and one day from the Closing Date, the daily volume weighted average trading price of the Common Shares on the Canadian Securities Exchange is greater than C$0.70 for the preceding 5 consecutive trading days.
The Company has granted the Underwriters an option (the “Over-Allotment Option”) to purchase up to an additional 3,550,000 Units at the Issue Price, exercisable at any time, for a period of 30 days after and including the Closing Date, which would result in additional proceeds of C$1,100,500.
The Underwriters are to be paid a commission payable in cash or Units equal to 7% of the gross proceeds of the Offering and to receive Unit purchase warrants of the Company (the “Underwriters’ Warrants”) equal to 7% of the number of Units sold under the Offering, with each Underwriters’ Warrant being exercisable to acquire one Unit at the Issue Price for a period of 36 months from the closing of the Offering.
The use of proceeds will be to fully fund the pre-clinical trials of our Amanita Muscaria extract, AME-1 and to continue our scientific research of AME-1 and its potential benefits for people suffering from serious mental and physical health issues and for general corporate purposes.
The securities to be offered pursuant to the Offering have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”) or any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, United States persons absent registration or any applicable exemption from the registration requirements of the U.S. Securities Act and applicable United States state securities laws. This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.