08:04 AM EDT, 09/06/2024 (MT Newswires) -- Psyence Biomed (PBM) shares jumped over 14% premarket Friday after the company said it has entered into a conditional binding term sheet for the proposed acquisition of privately-held Clairvoyant Therapeutics.

The company said it will issue $500,000 of its common shares to Clairvoyant's disposing shareholders upon closing of the transaction, followed by up to two potential share-based payments of $250,000 each upon achieving certain pre-specified milestones by December 2026.

The company will also provide funds to Clairvoyant in tranches of up to $1.8 million to settle its liabilities, which mostly consist of clinical trial costs.

Clairvoyant is currently running a phase IIb clinical trial evaluating a synthetic psilocybin candidate as a potential therapeutic for alcohol use disorder, with topline results anticipated in early 2025, the company said.

Price: 0.2621, Change: +0.03, Percent Change: +13.96