Psyched Wellness Ltd. (PSYC.C) has put out a press release showing that a maximum tolerated dosage (MTD) study of their muscimol extract (AME-1) has yielded positive results.

The study conducted by KGK Science, a licensed contract research organisation (CRO), provided the company with an important summary of the maximum tolerated dose and LD50 threshold for AME-1. These results are an important part of Psyched Wellness’s preclinical studies and have allowed them to continue the process of obtaining permits for their next set of preclinical studies. These next set of preclinical studies will involve 14- and 90- day oral toxicity, information that will help them identify a safe and effective dosage for human consumption.

“I am pleased to share the positive results from the individual studies that our CRO is conducting in the preclinical study on our behalf for AME-1,” reported Jeff Stevens, CEO of Psyched Wellness. “Today’s results pushes us one step closer to our goal of applying to the FDA for a new dietary ingredient and to Health Canada for a natural health product number.”

This positive result is one step along the way towards Psyched Wellness’s goal of creating premium mushroom-derived products. Their goal is to sell muscaria-derived water-based extracts, teas and capsules meant to promote restful sleep, assist with relaxation, and help reduce stress. Before this is possible, they are going to have to receive authorization from Health Canada and the FDA, and positive study results such as this one are crucial for that goal.

“This is a key first step in the toxicological assessment of AME-1 that is the foundation for the next set of preclinical studies further identifying the properties of AME-1,” stated Brian Tancowny, a scientific advisor to the Company.

The news sent the stock up to 53 cents on Tuesday morning, but the stock price has since gone down to 48 cents.