XTL Biopharmaceuticals completes acquisition of Psyga Bio, pivots to psychedelic medicine
XTL took an 83.40% stake in Psyga Bio through an ADS issuance and raised $1.5 million in a private placement to fund the newly combined pipeline.
On June 30, 2026, XTL Biopharmaceuticals Ltd. announced the completion of the strategic acquisition of Psyga Bio Ltd., making psychedelic operations the exclusive core business of XTL.1 According to the company's 6-K filing, Psyga Bio is an Israeli biotechnology company working on products derived from psychedelic and functional mushrooms, spanning therapeutic candidates, microdosing formulations, and wellness products1, under a Share Purchase Agreement dated April 28, 2026.
XTL acquired 269,095 shares of Psyga Bio, representing approximately 83.40% of the issued and outstanding share capital of the company on a fully diluted basis.1 In exchange, XTL issued unregistered American Depositary Shares to Psyga Bio's shareholders equal to roughly 33.36% of XTL's outstanding share capital following the issuance, with each ADS representing 400 ordinary shares of the company.1
Psyga Bio's shareholders may also receive additional ADSs or equivalent warrants tied to performance. Under the terms, shareholders will be entitled to receive additional ADSs, or warrants in lieu, representing 8.34% of XTL's share capital upon each of three clinical and commercial milestones, up to a total of 25%.1
Governance-wise, Psyga Bio will operate as a subsidiary of XTL, and its shareholders appointed one representative to XTL's six-member board, which includes two external directors.1 The transaction required shareholder approval given related-party ties, since Alex Rabinovich, a Psyga Bio shareholder, is also an XTL director holding about 24.9% of XTL's shares, and the deal was approved at XTL's Extraordinary General Meeting on June 29, 2026.1
Alongside the acquisition, XTL closed a private placement. Alexander Rabinovich and other investors put in $1.5 million total, buying ADSs at $2.70 each, with each investor receiving warrants attached at a 1.2 ratio for both Series A (exercise price $2.70, reducible to $1.70 on certain milestones) and Series B warrants (exercise price $5.00, reducible to $2.50), each carrying a five-year term and cash-only exercise.1
Written by readthrough’s AI from the linked primary sources and fact-checked against them automatically before publishing. Not investment advice.