Psyence Biomedical Ltd. (NASDAQ:PBM) shares climbed 4.4% in premarket trading Monday after the company announced plans to acquire an equity stake in Psyence Labs Ltd. through a share-for-share transaction.
The deal comes after Psyence Labs exercised a previously disclosed put option. Under the agreement, Psyence Biomedical will acquire 2,900 Psyence Labs shares, representing a total value of $5 million based on an assessed fair market price of $1,724 per share.
In return, Psyence Biomedical will issue 1,146,159 of its common shares to Psyence Labs, calculated using a 30-day volume-weighted average price of $4.36 per share. The transaction does not involve any cash payment.
Once completed, Psyence Labs is expected to hold approximately 49.98% of Psyence Biomedical’s outstanding common stock, based on the 1,147,148 shares outstanding prior to the issuance.
Closing of the transaction is anticipated on or around February 25, 2026, subject to standard closing requirements. These include confirmation of Psyence Labs’ valuation documentation and verification that no material adverse developments have occurred in its business.
Psyence Biomedical said the investment enhances strategic alignment between the two companies and reinforces its long-term supply framework as clinical development and commercialization efforts progress. The firms already maintain licensing and supply agreements covering pharmaceutical-grade psychedelic compounds.
The transaction was reviewed and approved by a special committee of independent directors, which evaluated both the commercial rationale and an independent third-party valuation of Psyence Labs. Certain Psyence Biomedical executives currently provide consulting services to Psyence Labs and together hold less than 13% of its outstanding equity.