InMed Pharmaceuticals Receives Nasdaq Panel Exception for Share Consolidation Plan to Regain Compliance

InMed Pharmaceuticals Inc. (NASDAQ: INM) recently disclosed in an 8-K filing with the Securities and Exchange Commission that it has been granted an exception by the Nasdaq Listing Qualifications Panel. The exception allows the company to implement a share consolidation plan until December 2, 2024, in order to meet Nasdaq listing rules.

The background for this decision stems from a previous event where the Nasdaq Stock Market had issued a delisting notice to InMed on September 17, 2024. The notice highlighted the company’s failure to meet the minimum bid price per share requirement for continued listing as per Nasdaq Listing Rule 5550(a)(2) by September 16, 2024.

To address this concern, InMed requested a hearing before the Nasdaq Panel and presented strategies aimed at enhancing shareholder value and regaining compliance with the minimum bid price rule. Following the hearing on October 31, 2024, the Panel issued a determination letter on November 1, 2024, granting the company permission for continued listing while stipulating conditions for compliance, including ten consecutive trading days meeting the minimum bid price rule by the Requisite Compliance Date.

In response, InMed’s Board of Directors approved a proposal on October 29, 2024, for a reverse stock split. The consolidation plan involves converting all issued and outstanding common shares, no par value, into one post-consolidation share for every twenty pre-consolidation shares. This move aims to rectify compliance concerns and enhance the company’s listing status on Nasdaq.

Upon implementation, the share consolidation will reduce the number of issued and outstanding common shares from 14,361,550 to approximately 718,078 shares on a non-diluted basis. Shareholders holding physical certificates will receive instructions for the consolidation process, while those with uncertificated shares will have their accounts adjusted accordingly.

While InMed Pharmaceuticals is actively working towards executing the consolidation and regaining compliance, uncertainties remain about achieving compliance by the Requisite Compliance Date. Investors are advised to stay informed of developments and exercise caution with forward-looking information related to these events.

The company’s full pipeline of small molecule drug candidates targeting the CB1/CB2 receptors, along with its strategic initiatives, positions InMed for further growth and compliance achievements in the pharmaceutical sector.

The press release related to these developments can be accessed on the company’s website for further details and updates regarding the ongoing compliance efforts and consolidation plan.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read InMed Pharmaceuticals’s 8K filing here.

InMed Pharmaceuticals Company Profile

InMed Pharmaceuticals Inc, a clinical stage pharmaceutical company, develops a pipeline of prescription-based products. The company operates through two segments, the InMed and the BayMedica. The InMed segment researches and develops cannabinoid-based pharmaceuticals products. The BayMedica segment develops proprietary manufacturing technologies to produce and sell rare cannabinoids for the health and wellness industry.