Psyence Biomedical (PBM) said Monday it has agreed to a private placement of 1 million common shares or pre-funded warrants, along with accompanying series A and series B warrants, priced at $2 each for expected gross proceeds of $2 million.

The company said the series A warrants expire in five years, while the series B warrants expire in two years. Both warrants, exercisable immediately after issuance, will have an exercise price of $2. it added.

Net proceeds from the offering, slated to close around Tuesday, will be used for working capital and general purposes, Psyence said.

Shares of the company were down more than 15% in recent Monday premarket activity.