Psyence Group Announces Closing of Fourth Tranche of Private Placement and Conversion of Convertible Debt Note

Psyence Group inc. (CSE:PSYG / OTCQB:PSYGF), a life science biotechnology company pioneering the use of natural psychedelics in mental health and well-being, is pleased to announce that it has issued 9,043,038 common shares at a price of CAD$0.12 per common share for gross proceeds of CAD$1,085,164. This brings the total amount the Company has raised pursuant to the previously announced private placement to CAD $3.04 million (“Aggregate Proceeds”). The Company has received additional interest from prospective investors and has upsized the private placement accordingly. Net proceeds from the non-brokered private placement will be used to advance the Company’s recently announced Phase IIb clinical trial in Australia using a natural psilocybin in the palliative care setting, drug development and for general working capital.

The Aggregate Proceeds quantum raised has triggered the conversion of the previously announced convertible debt note. The convertible debt note plus accrued interest at 8% pa converts into 11,096,604 common shares at a price of CAD $0.12 per common share.

The Company has granted an aggregate of 3,775,000 restricted share units (each an “RSU”) to certain executives, officers, directors and consultants of the Company pursuant to the Company’s RSU Plan, of which one third vests after 12 months, one third after 24 months and the remaining third after 36 months. All RSUs expire December 31, 2026. Each RSU represents the right to receive, once vested, one common share in the capital of the Company for every RSU held.

Additionally, the Company has granted stock options under its Stock Option Plan to purchase an aggregate of 1,940,000 common shares of the Company at an exercise price of $0.14 per share for a five-year term. The stock options were granted to certain executives, officers, directors and consultants of the Company pursuant to the Stock Option Plan and the policies of the Canadian Securities Exchange (the “Exchange”). One half of the stock options vests immediately and the remaining half after six months. The granting of options and RSUs are subject to any necessary regulatory approvals and requirements of the Exchange.

The securities in the non-brokered private placement will be subject to a hold period under applicable securities laws of four-months and a day.

Psyence is a life science biotechnology company with a focus on natural psychedelics. Psyence works with natural psilocybin products for the healing of psychological trauma and its mental health consequences in the context of palliative care. Our name “Psyence” combines the words psychedelic and science to affirm our commitment to producing psychedelic medicines developed through evidence-based research.

Informed by nature and guided by science, we built and operate one of the world’s first federally licensed commercial psilocybin mushroom cultivation and production facilities in Southern Africa. Our team brings international experience in both business and science and includes experts in mycology, neurology, palliative care, and drug development. We work to develop advanced natural psilocybin products for clinical research and development.

Our key divisions, Psyence Production, Psyence Therapeutics and Psyence Function, anchor an international collaboration, with operations in Canada, the United Kingdom, Southern Africa, and a presence in the United States and Australia.