Psilocybin
Psyence Raises $10 Million For SPAC Deal
Psyence Group Inc. (CSE: PSYG) reported that its subsidiary, Psyence Biomedical Ltd. issued four senior secured convertible notes to raise $10 million….
Psyence Group Inc. (CSE: PSYG) reported that its subsidiary, Psyence Biomedical Ltd. issued four senior secured convertible notes to raise $10 million. The deal is concurrent with the closing of a deal with the SPAC (special purpose acquisition company) Newcourt Acquisition Corp (Nasdaq: NCAC) for a new business combination. The new company will receive $2.5 million on the close of the notes deal.
“This investment is an incredibly exciting milestone for Psyence, as we make huge strides in our progress towards listing our clinical trial business on Nasdaq,” said Dr Neil Maresky, the CEO of Psyence Group. “It signals a belief in the work we are doing at Psyence, allowing us to execute our strategy and further our research in palliative care.”
The SPAC deal was announced in November 2023 and valued Psyence Biomed at a pre-money equity value of $50 million. Following the closing of the Business Combination, Pubco’s common shares are anticipated to trade under the Nasdaq ticker “PBM”. At the time Maresky said, “The significant milestone of receiving effectiveness is one step closer to a listing on a US national security exchange and enhancing our corporate profile in the U.S., as we aim to commence our phase IIb Clinical Trial using nature-derived psilocybin in Palliative Care.”
Green Market Report wrote at that time that Psyence was still in the pre-revenue stage, though it owns a psilocybin mushroom cultivation facility in the African nation of Lesotho and is focused on research and development for psilocybin-based medical treatments, including clinical trials in Australia. Green Market Report went on to say that in its fiscal year, Psyence had spent C$3.5 million on operating activities, but only C$43,000 on research and development in the most recent quarter. Most expenditures were allotted to “professional fees and consulting fees,” on which Psyence spent C$365,000 in the second quarter.
At the end of September, Psyence “had not yet achieved profitable operations,” and had accrued total financial losses of C$24.6 million. The company “expects to incur further losses in the development of its business, all of which indicate that a material uncertainty exists that casts significant doubt about the Company’s ability to continue as a going concern,” it reported.
However, the infusion of cash from this deal could keep the company going until revenue picks up.
Financing Details
Psyence said in a statement that the Note Financing will be provided in four equal tranches of $3,125,000 of principal in exchange for a total of $2,500,000 in aggregate proceeds. The first Tranche is expected to close immediately before or concurrent with the closing of the previously announced Business Combination. The second tranche of funding will depend on whether the SEC has declared effective a resale registration statement registering for resale the shares of Pubco’s common stock underlying the Note issued to the purchaser. Funding of the third and fourth tranches is at the complete discretion of the Purchaser.
The post Psyence Raises $10 Million For SPAC Deal appeared first on Green Market Report.
psilocybin mushroom financing shares funding cse nasdaq deal research-
Law & Regulation1 week ago
Clearmind signs agreement with Hebrew University for psychedelic compound rights
-
Psychedelics1 week ago
Cybin Announces Publication of Research Manuscript in the Journal of Medicinal Chemistry
-
Psilocybin1 week ago
California advances bill for psychedelics centers
-
Psilocybin5 days ago
Passover Perspectives: Psychedelics, Moses, and the Burning Bush
-
Psychedelics1 week ago
Revive Therapeutics Announces FDA Acceptance of Meeting Request for Long COVID Diagnostic Product
-
Psychedelics1 week ago
Psychedelics Can Offer More Than Therapy On Its Own
-
Psychedelics4 days ago
Algernon NeuroScience and the Centre for Human Drug Research to Present DMT Phase 1 Stroke Clinical Data at the Interdisciplinary Conference on Psychedelic Research June 6 – 8th, 2024
-
Psychedelics5 days ago
Revive Therapeutics Announces Type C Meeting Request Granted by FDA for Clinical Study of Bucillamine to Treat Long COVID