Psyence Group Inc. (CSE:PSYG | OTCQB:PSYGF), a life science biotechnology company pioneering the use of natural psychedelics in mental health and well-being, announces that it has issued 1,056,441 common shares at a price of CAD$0.12 per common share for gross proceeds of CAD$126,773. In connection with this issuance, the Company also issued 17,691 common shares a price of CAD$0.12 per common share as payment of a finder’s fee. This brings the total amount that the Company has raised pursuant to the previously announced non-brokered private placement (“Private placement”) to CAD$4.4 million (“Aggregate Proceeds”).
Net proceeds from the Private Placement will be used to advance the Company’s recently announced Phase IIb clinical trial in Australia using a natural psilocybin drug candidate in a palliative care setting, drug development, and for general working capital.
The securities in the Private Placement will be subject to a hold period under applicable securities laws of four-months and a day.
As part of Psyence’s previously announced Phase IIb clinical trial in palliative care in Australia, the Company has successfully registered its research and development activities (“R&D”) with the Australian Federal Government. Psyence could benefit from the Australian Federal Government’s Research & Development tax incentive program, which could provide up to a 43.5% rebate on Psyence’s research and development expenses in Australia. With this successful registration and an independent third-party opinion and review of the R&D activities, Psyence is pleased to announce that it has entered into a loan agreement (the “Loan Agreement“) via its Australian subsidiary Psyence Australia (Pty) Ltd (the “Borrower“), to borrow up to AUD$1,100,000 by way of a secured loan (the “Loan“) from RH Capital Finance Co., LLC. The Loan will be secured by way of a General Security Agreement and parent company guarantee against the assets of the Borrower and the Company. The Loan will bear interest at 16% per annum, and be repayable the earlier of (a) 21 business days after the notice of assessment (in respect of R&D refunds) is issued by the Australian Taxation Office to the Borrower for the financial year ended June 30, 2023 (b) an event of default and (c) 30 November 2023. The Company and the Borrower intend to use the proceeds of the Loan to fund the Borrower’s ongoing Phase IIb clinical trial, drug development and for general working capital.
About Psyence Group
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 Australia, and a presence in the United States.