Psyence Biomed Signs $25M Stock Purchase Deal with White Lion Capital

NEW YORK, July 31, 2024 – Psyence Biomedical Ltd. (Nasdaq: PBM), a pioneering life sciences company, has secured a significant financial agreement with White Lion Capital, LLC. This arrangement allows Psyence Biomed to sell up to $25 million in common stock to White Lion over a two-year period, providing a substantial financial boost as the company advances its innovative therapies.

The agreement is structured to give Psyence Biomed the flexibility to sell stock at its discretion. The purchase price for the shares depends on the type of notice given by Psyence Biomed: for Fixed Purchase Notices, the price will be 90% of the lowest volume-weighted average price (VWAP) during the valuation period; for Rapid Purchase Notices, the price will match the lowest traded price on the notice date. Importantly, there is no cap on the price White Lion may pay for the shares. Additionally, White Lion has committed not to short-sell Psyence Biomed's stock, ensuring market stability.

In exchange for this financial arrangement, Psyence Biomed has issued common stock to White Lion as a commitment fee. Notably, the Purchase Agreement can be terminated by Psyence Biomed at any time without incurring additional costs or penalties.

Dr. Neil Maresky, Chief Executive Officer of Psyence Biomed, expressed enthusiasm about the agreement, emphasizing its role in supporting the company's clinical trials and other developmental programs. "This agreement with White Lion Capital provides us with access to critical funding as we rapidly approach the initiation of our Phase IIb clinical trial of nature-derived, non-synthetic psilocybin as a potential treatment for Adjustment Disorder in the Palliative Care context, while in parallel advancing earlier stage programs in additional high-need indications," said Dr. Maresky.

Psyence Biomed is at the forefront of developing botanical psilocybin-based psychedelic medicines, focusing initially on mental health issues within Palliative Care. The company, known for its evidence-based approach, aims to create safe and effective treatments for a range of mental health disorders. Psyence Biomed's commitment to innovation is reflected in its name, which combines “psychedelics” and “science.”

This financial backing from White Lion Capital is expected to significantly enhance Psyence Biomed's ability to push forward its clinical trials and therapeutic developments. As the world’s first company of its kind to be listed on Nasdaq, Psyence Biomed continues to lead the way in the field of psychedelic medicine.

Psyence Biomed's efforts are geared towards addressing critical mental health needs, particularly in the context of Palliative Care, where traditional treatments often fall short. The potential of psilocybin as a therapeutic agent is a promising frontier, and Psyence Biomed is dedicated to conducting rigorous scientific research and clinical trials to ensure the efficacy and safety of its products.

In summary, the agreement with White Lion Capital represents a strategic move for Psyence Biomed, providing the necessary financial resources to advance its clinical trials and further its mission of developing groundbreaking treatments for mental health disorders. With this support, Psyence Biomed is well-positioned to make significant strides in the field of psychedelic medicine, offering hope for improved therapeutic options in the future.

How to obtain the latest research advancements in the field of biopharmaceuticals?

In the Synapse database, you can keep abreast of the latest research and development advances in drugs, targets, indications, organizations, etc., anywhere and anytime, on a daily or weekly basis. Click on the image below to embark on a brand new journey of drug discovery!