Psyence Group sells PsyLabs to spin-off | How to order Skittles Moonrock online

Psyence Group, CSE: PSYG, announced that it would sell its 11.13% stake to PsyLabs (Nasdaq PBM), its affiliate. The deal will be for $1.1M in stock.

The deal requires Psyence Biomedical, a Psyence Group company, to issue shares worth 55 cents per share to Psyence Group. You can also read about it here A news release. PsyLabs, a private company, produces psychedelic substances for research and drug-development.

Psyence Biomedical’s CEO Neil Maresky stated in a press release that the acquisition gives “access to state of the art cultivation and production capability that supports our goal of becoming a leader, vertically integrated developer for psychedelic based therapeutics.”

PsyLabs stated that in addition to the usual approvals, the deal was contingent on the company meeting a milestone for product development by the end October.

The proposal comes after other recent restructuring efforts of Psyence Group. In March, the company merged Psyence Biomedical was listed on Nasdaq as a result of the merger with Newcourt Acquisition Corp. After the SPAC merger, PBM was owned by Psyence Group to an extent of 37%.

The company has also been cutting costs and restructuring non-clinical units, including transferring some of its psilocybin production and cultivation assets to a third-party. This latest deal may provide additional flexibility by swapping private shares for publicly traded stocks and allowing the company to focus on its core operations while maintaining indirect exposure with PsyLabs.

Psyence Biomedical is expanding its research. You can also read about it here A shareholder update was given last week. The company has recently begun a phase 2b trial on psilocybin derived from nature for adjustment disorders in palliative medicine. It is also looking at treatments for alcoholism and other substance abuse disorders. Two psilocybin dosages were tested in Australia for adjustment disorder.

Psyence Biomedical announced in its investor update that they plan to request an hearing regarding their non-compliance with Nasdaq listing standards. As of press time, the company’s stock was trading at 13 cents.

Adam Jackson

Adam Jackson writes for Green Market Report about the cannabis industry. He has previously written for the Missouri Independent and Columbia Missourian, and covered the Missouri Statehouse. Bloomberg Business News has covered retail, restaurants, and other consumer companies. You can find him on Twitter at @adam_sjackson and email him at adam.jackson@crain.com.