Psyence Biomedical stock price rises due to equity investment transaction

Investing.com – Psyence Biomedical Ltd. (NASDAQ: PBM) stock rose 4.4% in pre-market trading on Monday after the company announced it will acquire shares of Psyence Labs Ltd. through a stock swap.

The transaction follows the exercise of a previously disclosed put option agreement with Psyence Labs. Under the agreement, Psyence Biomedical will acquire 2,900 shares of Psyence Labs, valued at $1,724 per share based on fair market value, totaling $5 million.

In exchange, Psyence Biomedical will issue 1,146,159 common shares to Psyence Labs, based on a 30-day volume-weighted average price of $4.36 per share. The deal involves no cash consideration.

After the share issuance, Psyence Labs will hold approximately 49.98% of Psyence Biomedical’s issued common stock, with 1,147,148 shares outstanding prior to the issuance.

The transaction is expected to close around February 25, 2026, subject to customary closing conditions. These include submitting documentation verifying Psyence Labs’ fair market value and confirming that no material adverse events have occurred involving Psyence Labs or its business.

Psyence Biomedical stated that this investment strengthens strategic synergies between the two companies and supports its long-term supply strategy as clinical and commercialization projects advance. The companies maintain licensing and supply arrangements for medicinal-grade psychedelic compounds.

A special committee composed of independent directors reviewed and approved the transaction, considering business reasons and valuation by an independent third-party firm for Psyence Labs. Some executives of Psyence Biomedical provide consulting services to Psyence Labs and collectively hold less than 13% of Psyence Labs’ issued securities.

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