Psyence Group Inc. Advances Towards Nasdaq Listing with New Psychedelics Venture

LOS ANGELES- Psyence Group Inc., a Canadian psychedelics firm, has marked a significant advancement in its growth trajectory. The company, listed on the Canadian Securities Exchange (CSE: PSYG), has received regulatory approval from U.S. stock regulators for a business combination with the special purpose acquisition corporation Newcourt Acquisition Corp..  This merger paves the way for the creation of a new entity, Psyence Biomed, a venture that consolidates Psyence’s position in the burgeoning psychedelics industry.

The new company, Psyence Biomed, is valued at an impressive US$50 million, according to a joint press release. Upon completion of the merger, initially announced in January, Psyence Biomed is expected to trade on the Nasdaq under the ticker symbol PBM. “The significant milestone of receiving effectiveness is one step closer to a listing on a U.S. national security exchange and enhancing our corporate profile in the U.S.,” said Psyence CEO Dr. Neil Maresky. He emphasized the company’s focus on commencing phase IIb clinical trials using nature-derived psilocybin in palliative care.

Alongside this strategic development, Psyence also reported its financial results for the second quarter ending September 30. The company recorded a loss of C$488,848 for the quarter, a notable improvement from the C$1 million loss in the same period last year. However, for the first half of the fiscal year, the company’s losses totaled C$2.7 million, slightly higher than the C$2.2 million loss recorded last year.

Currently in the pre-revenue stage, Psyence operates a psilocybin mushroom cultivation facility in Lesotho, Africa, and is actively engaged in research and development for psilocybin-based medical treatments. This includes clinical trials in Australia. Despite this focus, the company’s expenditure on research and development was relatively modest at C$43,000 in the most recent quarter, with the majority of its spending directed towards professional and consulting fees.

As of the end of September, Psyence reported total assets of C$2.1 million, including C$856,000 in cash, against total liabilities of C$2.4 million. Despite not yet achieving profitable operations and having accrued financial losses of C$24.6 million, the company’s upcoming listing on the Nasdaq, following the effective declaration by the U.S. Securities and Exchange Commission of the F-4 filed by Psyence and Newcourt, signals a new chapter. This transition from the Canadian Securities Exchange to the Nasdaq is expected to provide Psyence with enhanced visibility and access to capital, critical for the company’s ongoing development and potential commercialization of psilocybin-based therapies.