Gotham Green Partners LLC Archives - Green Market Report

Debra BorchardtSeptember 1, 2023


Functional mushroom company Psyched Wellness Ltd. (CSE: PSYC) (OTCQB: PSYCF) following the company’s release of its unaudited financials for the quarter ending May 2023, announced that it has closed a second tranche of its previously announced non-brokered private placement effective August 31, 2023, for gross proceeds of $4.5 million. The company said it worked with Gotham Green on the deal and it intends to use the money for working capital and general corporate purposes.

Psyched Wellness is currently producing and developing a line of Amanita Muscaria-derived water-based extracts, teas, and capsules designed to help with three health objectives: (i) promote stress relief, (ii) relaxation and (iii) assist with restful sleeping. The company did state that it has paused its research and development projects and will only focus on using products related to Amanita since it has fewer regulatory restrictions.


The company reported revenue of $106,731 versus zero revenue for the same time period in 2022. The cost of goods sold was ($189,362). All figures are in Canadian dollars.

The company also reported a net loss of $790,028 in the quarter. Psyched Wellness also reported expenses in the quarter totaled $583,413, of which $203,046 went to management salaries and consulting fees. The company ended the quarter with $830,079 in cash.

Psyched Wellness is now reporting as a going concern. During the six months ending May 31, 2023, the company reported it incurred a net loss of $1,802,990 (2022 – $2,519,935) and negative cash flow from operations of $1,676,370 (2022 – $1,533,394), and as of that date,
the company’s accumulated deficit was $24,329,210 (November 30, 2022 – $23,679,183).


The new deal to raise funds follows the initial tranche that closed in June 2023 of a non-brokered private placement that netted the company US$500,000.

CEO Jeffrey Stevens said, “I appreciate the support and patience of our Shareholders as we have been working behind the scenes with Gotham Green Partners to close this tranche of financing. This is a transformative investment that will allow the Company to maintain its first-mover advantage in bringing legal and safe products derived from the Amanita Muscaria mushroom to consumers in the United States. I am pleased to also share that both sides have been working together on additional product development, while working to close the financing, to ensure we can hit the ground running post-closing.”

As a result of the deal, Gotham Green was allowed to add another board member, bringing its representation on the seven-member board to two. Terry Booth has resigned as a director of the company, effective August 31, 2023, to accommodate Gotham’s nominee, Lauren Spikes being appointed to the Board. Gotham also has an exclusive deal for any additional financing deals for the company until Nov. 8, 2023.

Psyched Wellness also stated that it had entered into an amended independent contractor agreement with The Shisel, pursuant to which David Shisel, as principal of The Shisel, shall be re-engaged to perform Chief Operating Officer services for the company.

William SumnerJanuary 2, 2019


Cannex Capital Holdings Inc. (CSE: CNNX) today announced its financial results for the second quarter of the 2019 fiscal year, which ended on October 31, 2018.

Revenue for the quarter rose to $3.05 million, up roughly 223% from $1.8 million during the same period in the previous year. The bulk of the revenue increase was attributed packaging sales and rental income.

Likewise, the company’s net income rose to $696,746; a significant increase when compared to the loss of $815,188 during the second fiscal quarter of 2018. Adjusted EBITDA decreased slightly, falling from $1.1 million to $1.03 million. At the end of the period, Cannex had approximately $10.04 million in cash and cash equivalents.

Following the end of the quarter, Cannex took several steps to strengthen its balance sheet; including signing a binding letter of agreement to merge with 4Front Holdings LLC. In an all-stock transaction. The merger is still pending due diligence regulatory approval, and there is no guarantee that merger will be completed as initially proposed.

If completed, the Cannex will own, operate or manage cultivation and production facilities in Washington, Illinois and Massachusetts and five retail operations in Illinois, Massachusetts, Maryland, and Pennsylvania.

The company also secured $32 million in funding from Gotham Green Partners, LLC, and will use the proceeds to retire existing debt and to support Cannaex’s multi-state operations.

“Cannex is pleased with another quarter of good topline results driven by continuing strong performance of our Washington State operations,” said Anthony Dutton, CEO of Cannex. “Washington is a critical component to our long-term strategy and forms the underpinnings of our operational template that we will leverage as Cannex expands into additional jurisdictions as a part of our recently announced business combination with 4Front Holdings.”

It has been a rough year for Cannex’s stock, despite the recent gains over the last quarter. Since March 2018, the company’s share price has been on a slow decline, bottoming out at around CAD$0.56 in late October. Since then, however, Cannex has been on the rise and is currently trading at or around CAD$0.96.

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