Psyched Wellness listed on the Canadian Securities Exchange in October 2020. The company went public through an RTO by acquiring all outstanding shares of Duncan Park Holdings, a defunct mining company. Apart from trading on the CSE, it has also listed its shares on the Frankfurt Stock Exchange under the ticker “5U9” and the OTC Pink Market under “DCNPF”.
It describes itself as a health supplements company engaged in the distribution of mushroom derived products and associated consumer packaged goods. The company is in the process of creating premium mushroom products to compete in the emerging functional food market. It is looking to develop a line of Amanita muscaria-derived water-based extract products, teas, and capsules. When microdosed, Amanita muscaria has anecdotally been shown to soothe the body, ease physical distress and help with
Psyched is the only player in the functional mushroom industry known to be currently researching Amanita muscaria for developing functional food products. As a result, it has an early-mover advantage in this category.
Going forward, the company aims to research, develop, and produce natural products from various other types of mushrooms, truffles, and plants, in compliance with regulatory bodies.
The initial product line that Psyched Wellness is developing will be derived from Amanita muscaria mushrooms. Amanita muscaria’s appearance is characterized by a large white-gilled, white-spotted, and usually vibrant red mushroom cap. It is one of the most recognizable and widely encountered varieties in popular culture.
The company is currently focusing its efforts on formulating and developing three primary product lines:
Flagship Amanita Muscaria-derived Water Based Extract
The Amanita muscaria-derived, water-based extract product line is focused on the diverse range of health benefits popularly believed to be derived from the
components of this variety. The company also intends to develop subsequent SKUs within this product line that may contain a mixture of other functional mushrooms, including but not limited to Lions Mane, Turkey Tail, and Reishi.
Stage of Development
Formulation of the initial flavours is currently in progress. The products will feature the Amanita muscaria derived water-based extract as its main ingredient. The current focus is on developing standard operating procedures with all its manufacturing partners which is a requirement for all FDA and Health Canada compliant
food and beverage companies.
Amanita Muscaria Derived Sleep Aid Tea
Psyched Wellness plans to subsequently develop a tea derived from the Amanita muscaria water-based extract that aims to function as a sleep aid. It intends to add additional mushroom ingredients combined with calming flavours such as chamomile to further enhance the effect.
Stage of Development
The company expects the formulation of the tea line to take less time and research. It will rely on the work completed as a part of the Amanita muscaria derived water-based extract product line development. The commercial launch of the tea line will occur on the completion of the product development stage.
Amanita Muscaria Capsules
These capsules aim to promote stress relief and relaxation and function as a sleep aid. While mushrooms will remain the primary ingredient, the product will also contain other popular ingredients for brain health including traditional medicinal ingredients such as ginseng.
Stage of Development
Psyched Wellness sees the benefits and ease of a capsule for micro-dosing. It is conducting research and development on a formulation of a blend of Amanita
muscaria derived water-based extract with other functional mushroom extracts.
Key Personnel Overview
Jeffrey Stevens – CEO
Seasoned Canadian capital markets executive with many years of experience in raising capital and building public companies. He has been involved in a number of development-stage companies operating in emerging industries. He brings an in-depth understanding of the challenges, operational and regulatory nuances that affect growth-stage companies.
David Shisel – COO
He has experience in highly regulated industries such as medical cannabis and has previously worked in legal capacities with various licensed producers. He also
has expertise in product development, working with cGMP manufacturers to identify product manufacturing requirements and establishing operations for pharmaceutical companies.
Keith Li – CFO
He has worked with a number of companies in the cannabis industry and has an in-depth understanding of financial reporting matters that affect companies in highly regulated industries.
Board of Directors
Booth is a co-founder of Aurora Cannabis, the world’s third-largest cannabis company by revenue. He brings significant insight and relationships to the company, which will be important in establishing future manufacturing operations, as well as securing relationships to market the company’s products.
Michael Nederhoff and Nicholas Kadysh
Both of them have been vital figures in the operations of Juul Canada. They were involved with various aspects of the Canadian operation including product launches, sales, government relations, organizational structure and P&L responsibility. They bring valuable insight into the consumer-packaged goods industry and understanding the regulatory environment for the company’s products.
He brings to the table a wealth of experience in auditing, corporate finance, and corporate governance in various industries such as manufacturing, retail, technology, and merchant banking.
The Company’s Advisory Board comprises of Dr. Dawn DeCunha, Professor David Nutt and Dr. Andrew Kohler. Together, they act as scientific advisors and bring valuable insight into the development of the company’s products from a scientific standpoint.
Estimated Market Size & Outlook
Demand for mushroom-based products has seen steady growth over the past decade as consumers have become more aware of their nutritional profile. For instance, according to Technavio, a UK-based market research firm the global functional mushrooms market is expected to grow by $14bn between 2018-2022, translating to a CAGR of over 9 percent.
There is an increasing culture of self-treatment and medication by microdosing of natural plant extracts and mushrooms that pose health benefits, both physical and psychological. While the research on the field of microdosing plants and mushrooms is still limited, a number of medical professionals have been investigating their potential health benefits.
In conclusion, Psyched Wellness could very well capitalize on its early-mover advantage. They have a strong and capable management team to guide them as well as an exciting and unique product line. Moreover, consumers are increasingly starting to incorporate functional foods and nootropics in their diets, providing Psyched Wellness with a substantial market opportunity.