Psyence Biomedical agrees to $2.0 million private placement with warrants

Psyence Biomedical Ltd. (Nasdaq: PBM) said on Dec. 23, 2024, that it signed definitive agreements for a private placement. It will sell an aggregate of 1,000,000 common shares, or pre-funded warrants in place of shares, at $2.00 each. Each purchase comes with a series A common warrant and a short-term series B common warrant, each to buy up to 1,000,000 common shares.

Both warrant series have an exercise price of $2.00 per share and can be exercised immediately. The series A warrants expire five years after issuance. The short-term series B warrants expire two years after issuance.

The placement is expected to close on or about December 24, 2024, subject to customary closing conditions. Gross proceeds are expected to be approximately $2.0 million before placement agent fees and other offering expenses. H.C. Wainwright & Co. is the exclusive placement agent. Psyence plans to use the net proceeds for working capital and other general corporate purposes.

The securities are offered under Section 4(a)(2) of the Securities Act of 1933 and/or Regulation D and are not registered. Under a registration rights agreement, Psyence agreed to file a resale registration statement.

The company's list of risk factors includes its ability to maintain its Nasdaq listing and to implement the Nasdaq compliance plan presented to The Nasdaq Hearings Panel. It also cites the recent share consolidation.

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