LAS VEGAS, NV, March 15, 2023 (GLOBE NEWSWIRE) -- PSYC Corporation (OTC Pink Market: PSYC) (“PSYC”, “PSYC Corp” or the “Company”), parent company to Spotlight Media Corporation (“SMC” or the “wholly owned subsidiary”), a multimedia leader positioned at the intersection where all things psychedelics and cannabis converge, is pleased to provide its shareholders with updates on key strategic developments recently made with the intent of maintaining a reasonable path towards up listing from the OTC Pink Market to the OTCQB.
Consolidation of $850K+ in Convertible Notes
This month, the Company executed a convertible note with its long-standing investment partners, RB Capital Partners, Inc. (“RB Capital”), thereby consolidating 12 convertible notes issued to RB Capital throughout 2022, totaling just over $850K including principal and interest.
The new consolidated note includes a fixed conversion price of $0.05, which is over 1,330% of the recent 10-day average trading price of the Company’s stock as of the date of this press release and has a reduced interest rate from 10% to 7%.
Between the fixed conversion price of $0.05 and a more favorable interest rate, the Company believes that the consolidation of these notes will contribute favorably towards creating a more effective and efficient capital structure, particularly when focused on ramping up efforts towards an intended-up listing to the OTCQB.
Last July, the Company and RB Capital agreed to the consolidation of over $2.7M in notes dating back to 2019 and placing them into one note at terms favorable to the Company and shareholders. As such, the Company consolidated more than $3.5M of its debt with RB Capital and all at a $0.05 conversion price and 7% interest rate per annum.
Since 2017, RB Capital has served as the Company’s primary investment partner. The Company also contends that RB Capital’s unwavering support since current CEO David Flores took over (July of 2020) has been instrumental in helping develop PSYC into the formidable multimedia leader for the emerging psychedelics industry through the success of Psychedelic Spotlight, which the Company launched in May of 2020.
Audit of 2022 Financials
The Company would also like to announce that earlier this month it kicked off the audit of its 2022 financials alongside its Accountant, Alex McKean, and audit firm, M&K CPAS, PLLC.
In addition to upholding the Company’s commitment to enhanced transparency, completing the audit of its 2022 financials will provide the Company with fully audited financial statements for each of the last 3 years.
Maintaining current and fully audited financials is also a necessary corporate requirement for any company with plans to up list from the OTC Pink Market to the OTCQB. And while not a requirement to maintain fully reporting status on the OTC Pink Markets, the Company has continued to demonstrate a proactive approach by keeping each of its most recent fiscal years fully audited.
“In my opinion, we have continued to make significant progress with strengthening the core fundamentals that make up the foundation of PSYC,” said PSYC CEO, David Flores.
“We believe this progress reasonably demonstrates our commitment to following through with the many different, and very specific set of objectives we laid out in recent years, all of which are aimed at maximizing value for our shareholders.
From the very beginning, we understood that the path from the Pink Market to the OTCQB would be a lengthy one that requires an ability to execute on a variety of different objectives.
We recognize that restructuring our debt with RB Capital through this consolidation is not the end all solution as it relates to creating the healthiest balance sheet possible. However, we firmly believe that consolidating these notes under far more favorable terms is establishing an environment whereby we have the best opportunity possible to manage this debt and ensure that it is not something preventing us from moving the Company forward.
The faith, patience, and belief that RB Capital has maintained in our mission of developing PSYC into the most prominent and successful multimedia company for the psychedelics industry is, in my opinion, why we are on a viable path to becoming just that.
Over the last 2 ½ years we have been adamant on strategically utilizing their investments to build and develop, piece-by-piece and step-by-step, Psychedelic Spotlight into what has now become one of the top 3 ranking psychedelic-focused multimedia platforms in the world.
We have also been keen on deploying resources focused specifically on improving our ability to follow through with an up listing to the OTCQB, reflected by having fully audited financials for 2020, 2021 and soon-to-be, 2022. In addition to this, the Company has also made strides in recent months with developing a more efficient revenue model.
RB Capital’s continued faith and support in PSYC’s long-term value potential is something that I believe can be demonstrated through their willingness to work with us on restructuring their debt. Our intent is to make strategic use of this opportunity to help further the Company’s objectives and as we continue to develop PSYC into a company that drives significant value back to each and every one of our shareholders.
As we continue down this path of an intended up list to the OTCQB, we will be providing regular updates to shareholders and markets regarding audience growth, revenue, acquisition integration, and additional platforms under development to provide the psychedelic space with a sound, comprehensive, and inclusive digital ecosystem.
We hope you’ll follow along with us on our unprecedented journey as the first publicly traded psychedelic media company. It’s truly an exciting time for TeamPSYC!”
About PSYC Corporation (OTC Pink Market: PSYC)
At PSYC Corporation we are integrating media, creativity, and technology to develop and deploy thought-provoking ideas and solutions that are fostering and transforming the approach to some of society’s most pressing matters.
PSYC has expressed its intent and commitment to positioning itself at the forefront of the psychedelic revolution and as a resource center for discovering and understanding the latest research and business opportunities surrounding psychedelic inspired medicines. In conjunction with the FDA’s more open-minded approach to psychedelic medicines, and as several major U.S. cities continue to approve the decriminalization of psilocybin, we believe investors are speculating that the psychedelic boom could be bigger than that of cannabis. PSYC is your source for current investment related news specific to psychedelic medicines and cutting-edge research improving overall health, moving this sector into the mainstream.
We are dedicated to a forward-thinking approach that embraces groundbreaking new technology and innovations and through the vision of business development we intend to continue to evolve into these unchartered territories as the industry leaders of the future.
About Spotlight Media Corporation
Spotlight Media Corporation (“SMC”) (www.spotlightmediacorp.com) is a Nevada Corporation and is a privately held wholly owned subsidiary of PSYC that was incorporated on February 8, 2022. At present time, SMC operates as a multimedia service company for the medicinal psychedelic industry through Psychedelic Spotlight in addition to the developing community-based platform, Bonfire (f/k/a “PsycheDev”). However, management intends, but cannot guarantee the success or profitability, that the business plan for SMC is to potentially expand beyond the medicinal psychedelic industry by way of other multimedia-related opportunities within other niche-style industries like cannabis, health and wellness, and sports such that SMC can make use of the audience it is establishing, across its platforms for cross-promotional opportunities and with the intent of developing a network of interconnected media-focused platforms.
Forward-Looking Statements Disclaimer:
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In some cases, you can identify forward-looking statements by the following words: "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "ongoing," "plan," "potential," "predict," "project," "should," "will," "would," or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. Forward-looking statements are not a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. Forward-looking statements are based on information available at the time the statements are made and involve known and unknown risks, uncertainty and other factors, including the effect of COVID-19 and the success of the current vaccine distribution, the adverse effect of the Omicron variant, that may cause our results, levels of activity, performance or achievements to be materially different from the information expressed or implied by the forward-looking statements in this press release. This press release should be considered in light of all filings of the Company that are disclosed on the OTC Markets.com website and is not incorporated by reference into such reports.
Disclaimer: PSYC Corporation does not in any way encourage or condone the use, purchase, sale or transfer of any illegal substances, nor do we encourage or condone partaking in any unlawful activities. We support a harm reduction approach for the purpose of education and promoting individual and public safety. If you are choosing to use psychedelic substances, please do so responsibly.
Corporate Contact:
PSYC Corporation (PSYC)
www.psyccorporation.com
www.spotlightmediacorp.com
(702) 239-1919
info@psyccorporation.com
OTC PINK MARKET: PSYC
