Psyence BioMed Ratifies Put Option for Share-for-Share Equity in PsyLabs, Secures Supply
Psyence BioMed's board ratified a put option allowing PsyLabs to force a share-for-share equity investment at fair market value, securing the company's access to pharmaceutical-grade psychedelic compounds. The structure preserves Psyence BioMed's near-term financial flexibility and guarantees reliable, GMP-compliant supply in support of clinical and commercial programs.
1. Put Option Agreement with PsyLabs
The board of Psyence BioMed ratified a put option agreement granting PsyLabs the right to require a share-for-share equity investment at fair market value. This agreement is part of a broader strategic relationship, including licensing arrangements for investigational and commercial-scale manufacturing.
2. Supply and Financial Strategy
The pact secures reliable GMP-compliant supply of pharmaceutical-grade psilocybin and ibogaine while preserving near-term financial flexibility by deferring any capital outlay until the option is exercised. This structure mitigates supply-chain, regulatory, and execution risks as clinical and commercial programs advance.
3. Governance and Oversight
A Special Committee of independent directors reviewed terms and an independent valuation of PsyLabs before ratifying the agreement to ensure arm’s-length fairness. Certain executives provide consulting services to PsyLabs and hold under 13% equity, with oversight roles in PsyLabs’ subsidiaries to safeguard Psyence BioMed’s interests.