XTL Biopharmaceuticals Completes Acquisition of Psyga Bio
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6 days ago
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Source: NASDAQ.COM
- Acquisition Completed: XTL Biopharmaceuticals Ltd. has successfully completed the acquisition of Psyga Bio Ltd., making psychedelic operations its core business, marking a significant strategic shift for the company.
- Pipeline Development: Psyga Bio focuses on developing products based on Psilocybin and its derivatives targeting severe mental health disorders, such as treatment-resistant depression and PTSD, which is expected to present significant market opportunities for XTL.
- Operational Independence: Psyga Bio operates a licensed pharmaceutical manufacturing facility dedicated to the cultivation, extraction, and formulation of medical-grade psychedelic Active Pharmaceutical Ingredients (APIs), enhancing XTL's operational independence and large-scale commercialization capabilities.
- Shareholder Incentives: Under the agreement, Psyga's shareholders may receive up to 25.02% of XTL's capital upon achieving three significant clinical and commercial milestones, further incentivizing shareholder alignment with the company's growth.
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About XTLB
X T L Biopharmaceuticals Ltd (Xenograft Technologies Ltd) is an Israel-based biopharmaceutical company engaged in acquisition and development of pharmaceutical drugs for treatment of autoimmune diseases. The Company pipelines include hCDR1 systematic lupus erythematosus and recombinant human erythropoietin (rHuEPO) multiple myeloma. Its hCDR1, which is a potential treatment for systemic lupus erythematosus (SLE) and Sjogren's syndrome (SS). hCDR1 is a peptide that is administered subcutaneously and acts as a disease-specific treatment to modify the SLE-related autoimmune process. The rHuEPO known agent for anemia to prolong a survival of patients for treatment of multiple myeloma blood cancer. Its Erythropoietin (EPO) is a glycoprotein hormone produced mainly by kidneys. EPO stimulates erythropoiesis, production of red blood cells, by binding to its receptor on a surface of erythroid progenitor cells, promoting their proliferation and differentiation and maintaining their viability.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
- Acquisition Completed: XTL Biopharmaceuticals Ltd. has successfully completed the acquisition of Psyga Bio Ltd., making psychedelic operations its core business, marking a significant strategic shift for the company.
- Pipeline Development: Psyga Bio focuses on developing products based on Psilocybin and its derivatives targeting severe mental health disorders, such as treatment-resistant depression and PTSD, which is expected to present significant market opportunities for XTL.
- Operational Independence: Psyga Bio operates a licensed pharmaceutical manufacturing facility dedicated to the cultivation, extraction, and formulation of medical-grade psychedelic Active Pharmaceutical Ingredients (APIs), enhancing XTL's operational independence and large-scale commercialization capabilities.
- Shareholder Incentives: Under the agreement, Psyga's shareholders may receive up to 25.02% of XTL's capital upon achieving three significant clinical and commercial milestones, further incentivizing shareholder alignment with the company's growth.
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- Strategic Acquisition Completed: XTL Biopharmaceuticals has successfully acquired 83.40% of Psyga Bio, marking a strategic transformation towards focusing exclusively on the global psychedelic medicine sector, which is expected to enhance its competitiveness in emerging markets.
- Clinical Pipeline Advantage: Psyga Bio is developing an advanced pipeline of products based on the psychedelic compound Psilocybin aimed at treating severe mental health disorders, which is anticipated to meet the urgent market demand for innovative therapeutic solutions and drive future growth for the company.
- Unique Production Facility: XTL possesses a GMP-certified pharmaceutical manufacturing facility that ensures operational independence and large-scale commercialization capabilities for psychedelic drugs, thereby enhancing product quality and supply chain stability, which strengthens its market competitiveness.
- Favorable Regulatory Environment: With the FDA accelerating research and approvals for psychedelic drugs, XTL's acquisition comes at a historic juncture, expected to unlock significant market potential and further solidify its leadership position in the industry.
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- Nasdaq Compliance Notice: XTL Biopharmaceuticals has received a compliance notice from Nasdaq for failing to file its annual report on Form 20-F for the year ended December 31, 2025, and must present its views by May 26 to avoid further actions.
- Insufficient Shareholder Equity: The company is currently under review by Nasdaq for not meeting the minimum $2.5 million shareholder equity and $1 bid price requirements, indicating serious concerns regarding its financial health.
- Extension Request: XTL intends to request an extension of the suspension of its securities by May 26, 2026, aiming to secure additional time to address compliance issues and restore market confidence.
- Stock Price Fluctuation: Following the market close, XTLB shares rose by 5.98% to $2.66, suggesting that despite delisting risks, investors remain optimistic about the company's potential transactions and financial restructuring.
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- Acquisition Deal: XTL Biopharmaceuticals acquires Psyga Bio, gaining ownership of seven approved Phase 2 clinical trials focused on mental health, addiction, and neurological disorders, which is expected to accelerate drug development and enhance market competitiveness.
- Stock Surge: Following the acquisition announcement, XTLB shares surged over 90%, breaching the 200-day moving average for the first time since December 26, 2026, marking the largest single-day gain, indicating strong market optimism about its future prospects.
- Regulatory Support: The deal coincides with increasing regulatory support for psychedelic therapies in the U.S., as the FDA has introduced faster review pathways, which is expected to expand the use of psychedelic medicines for conditions like PTSD and depression, further driving industry growth.
- Investor Sentiment: Retail sentiment on Stocktwits shifted from neutral to ‘extremely bullish’, with message volumes spiking, and analysts noted that if the stock breaks above $4.30, significant upside potential is likely, reflecting strong market confidence in XTL's future.
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- Acquisition Overview: XTL Biopharmaceuticals (XTLB) has agreed to acquire 100% of Psyga Bio in a share-based transaction, where Psyga shareholders will receive shares representing 40% of XTL post-closing, indicating XTL's strong confidence in Psyga's future potential without cash consideration.
- Milestone Incentive Mechanism: An additional 10% equity may be issued upon achieving key clinical and commercialization milestones, which not only incentivizes the Psyga team to meet targets but also potentially enhances XTL's competitive position in the market.
- Technology and Resource Integration: Psyga brings a GMP-ready facility and a library of over 180 proprietary mushroom strains, which will provide robust technical support for XTL's planned seven Phase 2a clinical trials in mental health and CNS indications, thereby improving R&D efficiency.
- Funding Support and Market Reaction: XTL has secured a $1.5 million private placement to support the transaction, and XTLB shares rose 58.7% in premarket trading, reflecting positive market sentiment regarding the acquisition and optimistic expectations for the company's future growth.
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- ADS Ratio Change: XTL Biopharmaceuticals will change its American Depositary Shares (ADS) ratio from 1:100 to 1:400 effective March 25, 2026, representing a 1-for-4 reverse ADS split for shareholders, which may alter the shareholder structure significantly.
- Cash Distribution Policy: The adjustment will not issue any fractional ADSs, with proceeds from fractional sales distributed in cash to shareholders, aiming to simplify the shareholder experience and reduce potential market volatility.
- Nasdaq Delisting Notice: XTL Biopharmaceuticals has received a delisting letter from Nasdaq, which could negatively impact the company's market image and shareholder confidence, further exacerbating investor concerns.
- Financial Disclosure: Despite facing delisting risks, XTL Biopharmaceuticals must continue to disclose its financial information promptly to ensure transparency and maintain investor trust, especially in the context of the ADS ratio adjustment.
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