Psyence Biomed to Acquire Stake in PsyLabs for $1.1 Million

LOS ANGELES- Psyence Biomedical Ltd. announced its agreement to acquire an 11.13% stake in PsyLabs, a company specializing in psychedelic active pharmaceutical ingredients (APIs) and extracts, in exchange for $1.1 million worth of common stock. This transaction strengthens Psyence Biomed’s partnership with PsyLabs, providing access to PsyLabs’ production capabilities as the company advances its clinical pipeline.

Under the terms of the agreement, Psyence Biomed will issue stock at $0.55 per share in exchange for Psyence Group’s ownership stake in PsyLabs. This acquisition follows an existing partnership where PsyLabs supplies nature-derived psilocybin for use in Psyence Biomed’s clinical trials targeting Alcohol Use Disorder (AUD) and other Substance Use Disorders (SUDs).

Psyence Biomed CEO Dr. Neil Maresky emphasized the strategic importance of the acquisition, stating that it aligns with the company’s goal of becoming a leader in developing psychedelic-based therapeutics. PsyLabs, led by CEO Tony Budden, is licensed to produce pharmaceutical-grade psychoactive compounds such as psilocybin, ibogaine, and mescaline, and has developed proprietary processes aimed at achieving high-purity products, which are crucial for regulatory compliance and clinical success.

The acquisition is subject to board and regulatory approvals, due diligence, and the achievement of a development milestone by PsyLabs by October 31, 2024.