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# Psyence BioMed Completes $2.6M Investment in PsyLabs Following Ibogaine Milestone Approvals
- URL: https://www.africainvestorreview.com/psyence-biomed-completes-2-6m-investment-in-psylabs-following-ibogaine-milestone-approvals/
- Published: 2026-10-22T06:57:00.000Z
- Updated: 2026-10-22T20:58:53.000Z
- Description: The Nasdaq-listed biotech exercises a $2.6 million backstop commitment to raise its stake in natural API developer PsyLabs to 43.37%, securing African-sourced pharmaceutical-grade ibogaine supply for U.S. clinical trials.
- Author: Charles S.
- Tags: Macro & Markets, Southern Africa

**TORONTO & JOHANNESBURG** — Nasdaq-listed clinical-stage biotechnology company [**Psyence Biomedical Ltd.**](https://www.linkedin.com/company/psyence-company/home/?ref=africainvestorreview.com)(Nasdaq: PBM) has completed a **$2,599,896 (\~$2.6 million)** equity investment in natural active pharmaceutical ingredient (API) specialist [**PsyLabs Ltd**](https://www.linkedin.com/company/psyencelabs/home/?ref=africainvestorreview.com)**.**

The transaction follows the certification by PsyLabs' board of directors that two critical development and regulatory milestones were completed ahead of the original December 31, 2026, deadline.

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## Transaction Valuation & Capital Structure

The additional capital injection strengthens Psyence BioMed’s equity footprint and supply chain integration:

- **Subscription Parameters:** Psyence BioMed’s wholly-owned subsidiary, Psyence Biomed II Corp., subscribed for **1,014 ordinary shares** of PsyLabs at a price of **$2,564 per share**.
- **Valuation Framework:** The share subscription reflects a pre-money equity valuation of **$54 million** for PsyLabs.
- **Equity Position:** The investment increases Psyence BioMed’s ownership stake in PsyLabs from **41.13%** to **43.37%** of issued and outstanding shares.
- **Funding & Approval:** Funded entirely from Psyence BioMed’s existing cash reserves following review and approval by a special committee of independent directors.

## Strategic Supply Chain & U.S. Expansion

The investment unlocks a vertically integrated supply model connecting African-sourced natural botanicals to U.S.clinical production:

- **African Cultivation & Sourcing:** PsyLabs operates specialized cultivation and extraction infrastructure in Southern Africa, focusing on the production and purification of naturally derived psychoactive compounds,including ISO-certified ibogaine.
- **U.S. Manufacturing Integration:** Unlocks a binding term sheet making PsyLabs the exclusive ibogaine supplier for **Texas Ibogaine Research Corporation (TIRC)**. TIRC recently finalized a contract manufacturing agreement with DEA-registered facility **Benuvia** in Round Rock, Texas, for cGMP-grade API processing.
- **Target Indications:** The supply framework will support upcoming U.S. clinical trial applications targeting neuro-psychiatric and substance use disorders.

## Executive Statements

> "Achieving both milestones well ahead of the December 31 deadline is a clear signal that the ibogaine program is moving from planning into execution," stated [**Jody Aufrichtig**](https://www.linkedin.com/in/jody-aufrichtig-78953/?ref=africainvestorreview.com), Chief Executive Officer of Psyence BioMed and TIRC. "PsyLabs now has the regulatory documentation and additional capital to support the supply of pharmaceutical-grade ibogaine, and TIRC has a U.S. cGMP manufacturing partner in place to support the development work we are planning. Each company is doing what it is best equipped to do, which we believe is the right structure for building long-term value for our shareholders."

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