NEW YORK - Psyence Biomedical Ltd. (NASDAQ:PBM), a biotechnology company specializing in psilocybin-based therapeutics with a current market capitalization of $1.46 million, disclosed today that it has finalized agreements for a private placement of securities intended to raise approximately $2 million. According to InvestingPro analysis, the company has been quickly burning through cash, making this funding crucial for operations. The transaction involves the sale of 1 million common shares or pre-funded warrants, and equal numbers of series A and B common warrants, with an exercise price of $2.00 per share.
The offering, which is expected to close tomorrow, subject to customary closing conditions, includes series A common warrants that are exercisable immediately and will expire five years after issuance, and series B common warrants that will expire two years from the date of issuance. H.C. Wainwright & Co. is serving as the exclusive placement agent for the offering.
Psyence Biomed plans to allocate the net proceeds from this offering towards working capital and general corporate purposes. The securities sold in this private placement have not been registered under the Securities Act of 1933 and are therefore subject to restrictions on their sale in the U.S. However, the company has agreed to file a resale registration statement for the securities in accordance with a registration rights agreement with the investors.
This strategic move comes as Psyence Biomed continues to focus on developing nature-derived psychedelic medicines for mental health disorders, particularly within palliative care settings. The company's commitment to evidence-based innovation is underscored by its efforts to obtain regulatory approval for its therapeutic products.
The information in this article is based on a press release statement from Psyence Biomedical Ltd. and is intended for informational purposes only. It does not constitute an offer to sell or a solicitation of an offer to buy any securities. For comprehensive financial analysis and additional insights, including 8 more exclusive ProTips, visit InvestingPro.
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