Psyched Wellness Announces Secured Term Loan
Psyched Wellness secures a four-year SOFR-based term loan for AMA-brand operating costs and inventory from related-party lenders.
Rhea-AI Summary
Psyched Wellness (PSYCF) has entered into secured term notes for an aggregate principal of US$244,541 with Gotham Green Fund I, L.P. and Gotham Green Fund I (Q), L.P.
The Loan will fund operating expenses and inventory purchases for the Company’s AMA-branded business. It bears interest at a rate equal to the applicable Secured Overnight Financing Rate (SOFR) plus 5% per annum, compounded annually, with principal and accrued interest due on September 9, 2028. Each Note is secured by a continuing security interest over all assets and property directly related to the AMA brand. The transaction is classified as a related party transaction under MI 61-101, and Psyched Wellness relies on exemptions from formal valuation and minority approval because the fair market value is below 25% of its market capitalization.
Positive
- US$244,541 term loan secured to fund AMA operating expenses and inventory
- Single bullet maturity with principal and interest due on September 9, 2028
- Interest rate set at SOFR + 5%, providing a defined cost of capital
- Transaction size below 25% of market capitalization, allowing MI 61-101 exemptions
Negative
- Loan is secured against all AMA-related assets and property
- Deal is a related party transaction under MI 61-101, raising governance considerations
AI-generated analysis. How Rhea-AI works. Not financial advice.
Toronto, Ontario--(Newsfile Corp. - September 10, 2026) - 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 Amanita Muscaria-derived health and wellness products, announces that it has entered into secured term notes (the "Notes") with Gotham Green Fund I, L.P. and Gotham Green Fund I (Q), L.P. (together the "Lenders") for an aggregate principal amount of US
The Loan bears interest at the rate equal to the applicable Secured Overnight Financing Rate (SOFR) plus
The Loan constitutes a "related party transaction" within the meaning of Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101") as the Lenders, together with their affiliates and/or co-investors, jointly control over
For further information, please contact:
Michael Nederhoff Interim Chief Executive Officer Psyched Wellness Ltd. Tel: 416-568-6627 Email: mnederhoff@psyched-wellness.com Website: http://www.psyched-wellness.com
About Psyched Wellness
Psyched Wellness 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.
Cautionary Note 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 use of proceeds of the Loan; the Company's future financing or transactional or operational activities and the Company's ability to carry out its objectives and develop its business and products following the date hereof.
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 being unable to use the proceeds of the Notes as described, legal or regulatory impediments regarding the Notes, accrued and unpaid interest thereon, the Company defaulting on the Note leading to, among other things, enforcement under the security, increased accrued interest and the Lenders extending the Maturity Date (and increased accrued interest in respect thereof) or availing itself of other available remedies, the proceeds being insufficient for the Company's purposes, the Company's inability to repay the Note on the Maturity Date or at all and the Company being unable to raise additional funds on terms acceptable to the Company or at all necessary to repay the Note.
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 news 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.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/313878
FAQ
How will Psyched Wellness use the proceeds of the Loan?
The company plans to use the Loan proceeds for operating expenses and inventory purchases related to operating its business under the AMA brand.
What are the key financial terms of the Psyched Wellness Loan?
The Loan totals US$244,541, bears interest at the applicable SOFR plus 5% per annum, compounded annually, and requires repayment of all principal and accrued interest on the September 9, 2028 Maturity Date.
What collateral secures the Notes?
Each Note is secured by a continuing security interest over all assets and property of Psyched Wellness that are directly related to the company’s business under the AMA brand.
Which MI 61-101 exemptions does Psyched Wellness rely on?
Psyched Wellness relies on the formal valuation and minority approval exemptions in Sections 5.5(a) and 5.7(1)(a) of MI 61-101, as the company states that the fair market value of the transaction does not exceed 25% of its market capitalization.