- Research leader for the health benefits of Amanita Muscaria mushrooms
- Engaged in pre-clinical trials on the company’s proprietary extract AME-1
- Well funded after recent equity raise
What Psyched Wellness does:
Psyched Wellness Ltd (CSE:PSYC) (OTCQB:PSYCF) (FRA:5U9), formerly Duncan Park Holdings Corporation, is a Canadian health supplement company dedicated to protect, restore and regain a healthier body and mind through the production of products derived from artisanal, medicinal and psychedelic mushrooms.
The Toronto-based company’s first line of products will be derived from the unique and famous looking psychedelic medicinal mushroom Amanita Muscaria, and its psychoactive compound Muscimol.
Psyched Wellness is targeting the creation of premium mushroom-derived products that have the potential to become a leading North American brand in the emerging functional food category. It is in the process of developing a line of Amanita muscaria-derived water-based extracts (AME-1) in teas and capsules designed to help with three health objectives: promote stress relief, relaxation and assist with restful sleeping.
The Amanita Muscaria mushroom, which grows wild throughout the temperate and boreal regions of the Northern Hemisphere, is easily recognizable with its red and white cap and has been used in traditional healing practices for centuries, according to the company.
Amanita Muscaria has three main components that activate the nervous system: ibotonic acid, muscimol and muscazone. Isolating muscimol compounds have been shown to treat stress and anxiety, ease muscular pain and promote restorative sleep.
Psyched Wellness is led by CEO Jeffrey Stevens, the former president and chief operating officer of Datametrex AI Limited (CVE:DM), who has more than 20 years of capital markets experience in addition to structuring multiple M&A transactions and building successful businesses.
How is it doing:
In February, Psyched Wellness provided an update on a study focused on determining the effectiveness of the company's AME-1 extract and the active compound muscimol from the Amanita Muscaria mushroom for potential dual antioxidant and anti-inflammatory properties.
The company noted that an initial set of preclinical tests examining potential allergenicity have been completed and results demonstrate that AME-1 does not have any allergenic properties in an in-vitro cell-based mast cell model, adding that subsequent studies are being conducted to further support these findings, while antioxidant and anti-inflammatory studies are also underway.
Previously, highlights from the toxicology assessment conducted by KGK Sciences had “shown a great potential and a clear path for the company to move forward with the development and scale-up of its unique extract,” according to Psyched Wellness.
The company also reported that it has submitted an application with the United States Patent and Trademark Office (USPTO) to register the trademark ‘AME-1’ in connection with the company's extraction technology.
Psyched Wellness believes that AME-1 will be the base for its future Amanita Muscaria product lines in both the health and wellness and the pharma side, and the company said it will continue to identify novel uses for AME-1, as well it will look to build a patent portfolio around AME-1 for new pharmacologically-optimized psychedelic medicines.
The company noted that Amanita Muscaria has never been classified as a scheduled drug.
Also in February, Psyched Wellness closed a bought deal private placement for total gross proceeds of C$6.6 million, after issuing 21.3 million units to subscribers at a price of $0.31 per unit.
The company said proceeds from the offering will be used to fully fund pre-clinical trials and continue its scientific research of AME-1 and of its potential benefits for people suffering from serious mental and physical health issues, as well as for general corporate purposes.
And, in what can only be interpreted as good news for its shareholders, Psyched Wellness stock was selected as one of the 17 companies in the US and Canada to be included in the first psychedelic exchange-traded fund, managed by Horizons ETF Management, which began trading on January 26 under the ticker ‘PSYK’ on the NEO Exchange.
In late 2020, the company successfully up-listed its shares in the US from the OTC Pink Market to the OTCQB Venture Market.
Inflection points:
- Completing pre-clinical trials and rodent testing for safety and efficacy of AME-1
- Establishing sales channels for its products in Canada, the US, and Europe
- US Food and Drug Administration and Health Canada approval to sell AME-1 as a health supplement
What the boss says:
Commenting on the company’s Muscimol antioxidant and anti-inflammatory study, Psyched Wellness CEO Jeffrey Stevens said in a statement: “The research from these studies supports what we already believe-that this special compound will have therapeutic benefits.”
He added: “It is our job to continue to work hard to uncover AME-1's potential, and our research and development team will continue to examine all potential ways that Amanita Muscaria can have positive impacts on health and wellness.”
Contact Sean at sean@proactiveinvestors.com
