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Psyched Wellness Closes Initial Tranche of Non-Brokered Private Placement
Toronto, Ontario--(Newsfile Corp. - June 12, 2023) - Psyched Wellness Ltd. (CSE: PSYC) (OTCQB: P...
About this update from Psyched Wellness Ltd
[{"type":"text","content":"Psyched Wellness Closes Initial Tranche of Non-Brokered Private PlacementToronto, Ontario--(Newsfile Corp. - June 12, 2023) - Psyched Wellness Ltd. (CSE: PSYC) (OTCQB: PSYCF) (FSE: 5U9) (the \"Company\" or \"Psyched Wellness\"), 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 it has closed the initial tranche (\"Initial Tranche\") of its previously announced non-brokered private placement (the \"Offering\"), the details of which are described in the Company's press release dated May 30, 2023 (the \"May 30 Release\"). Pursuant to Initial Tranche, the Company has issued 9,585,000 units of the Company (\"Units\") at a price of C$0.07 per Unit for gross proceeds of US$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.Capitalized terms not otherwise defined herein have the meanings attributed to them in the May 30 Release.Each Unit consists of one (1) Common Share and one (1) Warrant. Each Warrant entitles the holder thereof to acquire one (1) Additional Share at a price of C$0.10 per Additional Share at any time for a period of sixty (60) months from the date of issuance, exercisable on a cashless basis, subject to acceleration and compliance with the policies of the CSE, as further outlined in the May 30 Release. All securities issued under the Initial Tranche are subject to: (i) a four (4) month and one (1) day hold period from the date of issuance and (ii) applicable legends as required pursuant to the U.S. Securities Act. The Company intends to use the net proceeds from the Offering for working capital and general corporate purposes. As an additional condition to the closing of the Initial Tranche, the current Board members and officers of the Company entered into support agreements to vote their Common Shares at the Meeting in favor of approving a subsequent tranche of the Offering for the purchase of US$7,000,000 worth of Units (\"Tranche 2\") and the issuance of the Units representing Tranche 2 (the \"Transaction Resolution\").Investor Rights AgreementIn connection with closing the Initial Tranche, the Company, Gotham Green Fund III, L.P. and Gotham Green Fund III (Q), L.P. (together, \"Gotham\") entered ...