Psyence Biomedical Ltd. (PBM), a biopharmaceutical company, announced that Psyence Labs Ltd., a developer and manufacturer of pharmaceutical-grade psychedelic compounds, has exercised its rights under a previously disclosed put option agreement under which Psyence Biomedical will make an equity investment in Psyence Labs at a fair market value determined in accordance with the terms of the agreement.
In connection with the share-for-share exchange, Psyence Labs will issue to Psyence Biomedical 2,900 Psyence Labs Shares, representing an aggregate value of $5 million based on a fair market valuation of Psyence Labs of $1,724 per share.
And Psyence Biomedical will issue to Psyence Labs 1.15 million common shares of the company, calculated by dividing the subscription amount by the 30-day VWAP of the Company's common shares of $4,36 per share for the period ending immediately prior to the agreed closing date.
Following the news, PBM shares are up 3.19% , at $2.59 in the pre-market.
In connection with the share-for-share exchange, no cash consideration will be exchanged.
Following the issuance of the Psyence Biomedical Shares, Psyence Labs will beneficially own approximately 49.98% of Psyence Biomedical's issued and outstanding common shares. Psyence Biomedical expects to consummate the share-for-share Exchange on or about February 25, 2026.
The transaction is expected to support Psyence BioMed's long-term supply strategy as its clinical and commercialisation programs advance.
The put option agreement was previously disclosed by Psyence BioMed and forms part of the broader strategic and commercial relationship between the two vertically integrated companies, including licensing and supply arrangements relating to pharmaceutical-grade psychedelic compounds.
PBM has traded between $2.42 and $468.35 over the last one year. The stock closed Friday's trade at $2.50.down 4.44%
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