Business
PSYC Strengthens Balance Sheet by Consolidating Notes with Reduced Interest
PSYC Strengthens Balance Sheet by Consolidating Notes with Reduced Interest.
About this update from Psyc Corporation
[{"type":"text","content":"\n LAS VEGAS, NV, July 19, 2022 (GLOBE NEWSWIRE) -- PSYC Corporation (OTCPink: PSYC) (“PSYC” or the “Company”), a media leader focused on the emerging psychedelic sector, announced the consolidation of 49 previously issued convertible debentures (“the Debentures”). The Debentures were issued between January 2019 and December 2021. According to the agreement, the interest rate on the Debentures has been lowered to 7% from 10%. The lower interest rate will reduce the total amount of capital that is owed to holders of the Debentures and presents the opportunity to strengthen the Company’s balance sheet. The Debentures are owned by RB Capital Partners, Inc. (“RB Capital”), and the agreement is a testament to the firm’s belief in PSYC's outlook. RB Capital is the Company’s largest Debenture holder and has shown a willingness to manage the debt on the balance sheet. The Company also believes that the consolidation of the Debentures further demonstrates RB Capital’s commitment to the Company's long-term growth prospects. Furthermore, the Company views the consolidation as part of a larger initiative for PSYC, centered around acquiring strategic assets and strengthening the balance sheet. This is particularly relevant while management remains focused on fulfilling its objective of initiating the Form-10 filing process, with the intent of up-listing to the OTCQB in the most reasonable time frame possible. Over the next quarter, the Company expects to report additional developments with the Debenture holders as it continues to focus on maximizing value for shareholders. “We are incredibly grateful for the commitment and support RB Capital has shown for PSYC over the last few years,” said PSYC CEO, David Flores. “Their recent support was positively critical to the redevelopment of PSYC and our ability to strategically and successfully position the Company at the forefront of a psychedelic sector that we believe is primed for exponential growth in the near future. Furthermore, the opportunity to work with RB Capital in a practical and constructive manner to not only consolidate a long list of their Debentures, but renegotiate specific terms that are helpful, not harmful to the Company, can, in my opinion, be viewed as a testament to their ongoing suppo...