LAS VEGAS, NV, Sept. 20, 2022 (GLOBE NEWSWIRE) -- PSYC Corporation (OTCPink: PSYC) (“PSYC” or the “Company”), a media leader focused on the emerging psychedelic and cannabis sectors, announced the signing and closing of an amended definitive agreement (“the Agreement”) for its wholly owned subsidiary Spotlight Media Corp. (“SMC”) to acquire media-related assets from Technical420, LLC (“T420”) as well as certain assets of SB Partners, LLC, that include, but are not limited to, MushroomStocks.com and OnTheBids.com, as well as Technical420.com.
After announcing the definitive agreement, on August 16, 2022, the Company started the integration and onboarding process of T420’s clients. The Agreement is already proving to be accretive to PSYC and the management team expects the transaction to support the expansion of the business.
Following the signing of the Agreement, PSYC and Mr. Berger are working towards the signing of an employment contract. The Company expects Mr. Berger to sign an employment contract and join the Company’s Executive Management Team as Chief Operating Officer of PSYC Corp. The employment agreement is expected to be shareholder friendly and signed within five (5) business days of completing the Agreement.
As part of the transaction, and upon the execution of the definitive agreement, Technical420 and SB Partners founder Michael Berger will join the Company’s Executive Management Team as Chief Operating Officer of PSYC Corp. His primary focus will be integrating the assets, implementing, and executing on a multi-faceted growth strategy, identifying acquisition targets, and structuring additional transactions.
As COO of PSYC, Michael Berger will be primarily focused on integrating the assets, implementing, and executing on a multi-faceted growth strategy, identifying acquisition targets, and structuring additional transactions. Since 2014, Mr. Berger has been focused on the cannabis and psychedelic industries for almost a decade. Prior to founding SB Partners, he worked in the Compliance and Equity Research departments at Raymond James Financial. For his involvement, Mr. Berger has agreed to be compensated in cash and equity, based on the performance of the Company. The management team finds this arrangement to provide the greatest upside potential for shareholders.
Valued at $2.25 million USD, the acquisition will consist of cash, preferred stock, and common stock warrants. The transaction will be completed through a series of tranches tied to revenue performance benchmarks, and the Company believes this mitigates any transactional risks.
PSYC’s acquisition combines two high-profile media firms, diversifies SMC’s reach into the cannabis space, and immediately enhances the reach of the combined entity. Based on initial analysis, the platforms attract a similar audience demographic, and the management team expects this aspect of the transaction to be highly synergistic.
“Closing this acquisition and incorporating the performing media assets from Technical420 into Spotlight Media is a significant step forward for our Company,” said PSYC CEO, David Flores. “Over the past couple of years, we’ve explored and considered a variety of different acquisition opportunities in search of an asset, or basket of assets, that we believed would do more than just contribute to revenue, but also be a natural fit for our trajectory as a multimedia leader for forward-thinking market sectors. Between Psychedelic Spotlight, Technical 420, and other assets now under our umbrella like Bonfire and Psychedelic Finder, we’ve developed an incredibly unique multimedia ecosystem which provides PSYC the opportunity to dominate this emerging intersection where cannabis, psychedelics and holistic living all converge for years to come.”
Incoming PSYC COO and Technical420 founder Michael Berger expressed his optimism on the deal closing. “The integration process has gone smoothly, and I believe the combined company has enough resources to survive any market weakness. The reach associated with PSYC’s portfolio of websites is substantial, and I expect our media offering to be far superior to what is currently available to companies in emerging industries. Spotlight Media and T420’s combination will enhance our value proposition, and I am excited about how the transaction will transform the business.”
PSYC CFO Craig Schlesinger concluded with, “This is a pivotal moment for PSYC Corp and Spotlight Media, as the acquisition of Technical420’s assets provide diversification and leverage to the cannabis space and is immediately accretive to both our top and bottom lines. While we continue integrating and scaling PSYC’s digital assets, significant increases in both revenue and cash flow are expected to follow. With Mr. Berger’s proven track record building monetizable, digital assets from scratch, his leadership will be integral in driving EBITDA growth as PSYC moves one critical leap forward towards profitability.”
About PSYC Corporation (OTCPink: 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:
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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.