Psyence Group Inc. announced that it has entered into a brokered subscription agreement with Cantheon Capital, LLC for the gross proceeds of CAD 1,923,375 on March 22, 2023. The company will issue units in the transaction. Each unit shall consist of one common share and one half warrant to purchase common shares.

Common shares will be issued at CAD 0.12 per common share in respect of the first tranche of investment. The units include exercise price equal to a 25% premium on the common share issue price in respect of each tranche of investment, and an exercise term of 18 months from the closing. The common shares issued upon subscription and the securities issued pursuant to the exercising of the warrants will be subject to a four-month and a day hold period from the date of their respective issuances.

The company expects to raise the fund in two tranches. The first tranche of CAD 961,687.5 is expected to raise by the end of the month.