Psyence Group Announces Closing of Second Tranche of Private Placement and Appointment of Strategic Advisor

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 closed the second tranche of its previously announced private placement of up to CAD$3 million. The Company has issued 7,751,859 common shares at a price of CAD$0.12 per common share for gross proceeds of CAD$930,223 in addition to the previously announced closing of the first tranche for gross proceeds of CAD$1.22 million from a consortium led by Brandon Kerzner, a member of the globally recognised Kerzner family.

The non-brokered private placement is subject to the approval of the CSE, and the securities will be subject to a four month hold period under securities laws. Net proceeds from the non-brokered private placement will be used to advance the Company’s palliative care clinical trial, drug development and for general working capital.

The Company is also pleased to announce the appointment of seasoned executive Christopher Bull as strategic advisor. Christopher will assist with technology patterning and strategic cross-licensing arrangements, patents and investor relations. Christopher is a qualified chemical engineer, attorney, patent attorney and Certified Licensing Professional®. Christopher is internationally recognised for his skills in relation to the development and execution of venture capital investment, patent, and intellectual property strategies for high-technology companies. He has been an investor, director, founder, and advisor to a range of successful companies in Europe and North America with novel technologies in the fields of pharmaceuticals, biotechnology, food sciences, chemical processing, and extraction technologies.

Furthermore, the Company announces that as a sign of confidence in the business, executives and officers have agreed to receive 1,186,134 common shares at a price of CAD$0.12 per common share in settlement of CAD$142,336 in consulting fees and salaries.  All common shares have a hold period of four months and a day. The executives and officers of the Company are deemed Insiders and issuance of common shares is considered a “related party transaction” pursuant to Multilateral Instrument 61-101—Protection of Minority Holders in Special Transactions (“MI 61-101“). The Company was exempt from the requirements to obtain a formal valuation or minority shareholder approval in connection with the Insider’s issuance pursuant to sections 5.5(a) and 5.7(1)(a) of MI 61-101 as it does not exceed 25% of the market capitalization of the Company.

Psyence is a life science biotechnology company listed on the Canadian Securities Exchange (CSE: PSYG) and quoted on the OTCQB (OTCQB: PSYGF), 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.