Psyence Biomedical Ltd. (Nasdaq: PBM) announced it has completed an additional investment of $2,599,896 in Psyence Labs Ltd. ("PsyLabs") through its wholly-owned subsidiary Psyence Biomed II Corp., following the achievement of two specified milestones tied to a backstop subscription commitment.

The milestones include the completion of an ibogaine regulatory readiness documentation package and the execution of a U.S. current Good Manufacturing Practice (cGMP) manufacturing agreement between Texas Ibogaine Research Corporation ("TIRC"), a wholly-owned Texas subsidiary of Psyence BioMed, and Benuvia Operations, LLC, a DEA-registered controlled-substance manufacturing facility located in Round Rock, Texas.

The investment was structured as a subscription for 1,014 ordinary shares of PsyLabs at $2,564 per share, reflecting a $54 million pre-money equity valuation for the financing round. Prior to the transaction, Psyence BioMed held approximately 41.13% of PsyLabs' issued and outstanding shares. Following the investment and a previously announced share exchange that closed October 1, 2026, the company's stake increased to approximately 43.37%. The investment was funded from existing cash resources.

The backstop commitment, originally announced September 23, 2026, allowed for up to $2.6 million payable in two tranches of up to $1.3 million each upon milestone achievement, with a deadline of December 31, 2026. Both tranches were called ahead of that deadline after the PsyLabs board certified the milestones as complete.

Under a binding term sheet announced September 28, 2026, PsyLabs is expected to serve as TIRC's exclusive ibogaine supplier for the United States. The parties have agreed to conclude a definitive agreement on or before November 30, 2026.

PsyLabs is a related party of Psyence BioMed and a significant shareholder of the company. The investment was reviewed and approved by a special committee of independent directors and the company's audit committee, in accordance with related-party transaction policies and applicable Nasdaq requirements.

"Achieving both milestones well ahead of the December 31 deadline is a clear signal that the ibogaine program is moving from planning into execution," said Jody Aufrichtig, Chief Executive Officer of Psyence BioMed and TIRC.