Psyence BioMed Completes $5M Equity Investment in PsyLabs via Put Option Exercise

Psyence Biomedical Ltd. has announced that Psyence Labs has exercised a previously disclosed put option, triggering a share-for-share equity investment in PsyLabs valued at US$5,000,000. The transaction will see the Company receive 2,900 PsyLabs shares and issue 1,146,159 PBM shares, with closing expected on or about February 25, 2026, and no cash changing hands.

The exercise of the Put Option Agreement extends the strategic equity linkage and deepens the supply relationship between the two vertically integrated companies. Following this news, PBM stock gained 20.80%, reflecting a significant positive market reaction, with the stock currently trading at $3.02.

The Put Option Agreement grants PsyLabs the right, but not the obligation, to require the Company to make a further equity investment in PsyLabs by way of a share-for-share exchange at arm's length and at fair market value. The transaction would leave PsyLabs with approximately 49.98% of PBM outstanding shares post-issuance, creating significant dilution but strengthening long-term supply alignment for clinical programs.

The Put Option Agreement forms part of a broader strategic and commercial relationship between the parties, including licensing arrangements pursuant to which the Company may access PsyLabs' investigational and commercial-scale manufacturing capabilities. PsyLabs is believed to be among the world's most advanced manufacturers of pharmaceutical-grade psychedelic compounds, with demonstrated expertise in scalable, GMP-compliant production.

Through its investment in and collaboration with PsyLabs, Psyence BioMed has established an integrated supply and GMP-compliant manufacturing platform spanning sourcing at origin, extraction, purification, and pharmaceutical production. This platform is designed to enable consistent, high-quality output while supporting the requirements of clinical and regulated environments.

Operating at the natural source of ibogaine in Africa, PsyLabs has secured direct access to raw materials and in-region processing capabilities, supporting traceability, supply continuity, and ethical sourcing practices aligned with long-term sustainability and community engagement. The Company confirms it currently holds standardized, stabilized, and GMP-compliant ibogaine doses in inventory, designed to support ongoing and future research initiatives.

Globally, pharmaceutical-grade ibogaine supply remains limited, fragmented, and largely non-integrated, making access to standardized, GMP-compliant material a critical constraint on clinical progress. Psyence BioMed's vertically integrated platform, supported by its GMP inventory, is designed to help address this gap.

The agreement reflects the strategic value delivered by PsyLabs in accelerating the development of an alternative investigational product approved by the Australian regulator for clinical trials, which significantly de-risked the Company's clinical development pathway and mitigated supply-chain, regulatory, and execution risks. Structuring the arrangement through a put option enables the Company to preserve near-term financial flexibility while securing strategic manufacturing access and long-term alignment without needing to deploy further significant capital upfront.