Psyched Wellness (CSE:PSYC, OTCQB:PSYCF) Ltd. has got a cash injection from psychedelic medical intervention investment fund, Negev Capital which has invested an undisclosed amount into the life sciences company focused on the production and distribution of artisanal functional mushrooms.
In a statement released by Negev, Jeff Stevens, CEO Psyched Wellness said: ''Negev Capital taking on a position at this stage is an acknowledgement of confidence and supporting the future growth of the company.''
Negev Capital, with assets of US$20-plus million, invests in drug discovery, with a focus on preclinical and/or Phase 1 stages of development. It aims to support those early-stage companies in need of capital that promote the thoughtful, responsible, medical use of psychedelic medication for psychiatric disorders, and who have excellent management and science teams, and solid IP.
"We are very excited to report our initial investment and expected ongoing partnership with Psyched Wellness. They recently announced that they have begun multiple preclinical studies on their Amanita Muscaria Extract (AME-1), focused on the extract's neurobehavioral efficacy (particularly on sleep and anxiety) and safety. Their hope is that they will be able to bring AME-1 to market in 2022 as the first extract from psychedelic mushrooms that is legal for human consumption in the health and wellness markets. Their longer-term goal is to achieve FDA approval for the medical market," said Ken Belotsky, partner at Negev Capital.
READ: Psyched Wellness to examine potential health benefits of Amanita muscaria extract AME-1 in new study
Psyched Wellness is a Canadian-based supplements company focused on the distribution and development of mushroom-derived products that have the potential to become leading brands in the functional food market, particularly in North America.
The company's most exciting product is a line of Amanita muscaria-derived water-based extracts, teas and capsules designed to help with anxiety/stress, and sleep.
"Completing the sleep study and obtaining a structure/function claim for AME-1 on humans is a very significant milestone, not only for the Company but for everyone that suffers from insomnia and sleeping disorders," said David Shisel, COO of Psyched Wellness.
Stuart Seidman, another Negev Capital partner commented: "Our due diligence for Psyched was very extensive. We engaged the company and its scientific team in detailed and comprehensive discussion regarding the approval strategy, preclinical studies, toxicologic results, manufacturing challenges, and development timelines. We were impressed with management's attention to detail and shareholder value, and their ability to proceed with their intended plan.
"Further, we were impressed with the scientific advisors, especially Prof David Nutt, who will be soon beginning an AME-1 sleep study at Imperial College, with the aim of demonstrating efficacy for insomnia without residual hangover. We have decided to slowly increase our partnership with Psyched, beginning our support with a relatively small investment, with the plan to increase our stake as progress is made towards AME-1 approval."
Contact the author at jon.hopkins@proactiveinvestors.com