VANCOUVER - InMed Pharmaceuticals Inc. (NASDAQ: INM), a developer of small molecule drug candidates, has received an extension from the Nasdaq Listing Qualifications Panel to address its share price deficiency. The pharmaceutical company is now required to evidence compliance with the Nasdaq's minimum $1.00 bid price per share rule by December 2, 2024.
The Nasdaq Listing Qualifications Department initially notified InMed of its non-compliance with the Minimum Bid Price Rule on September 17, 2024. In response, InMed appealed for a continued listing during a hearing on October 31, 2024, where it presented strategic initiatives to enhance shareholder value and regain compliance.
Following the hearing, InMed's board approved a share consolidation proposal on October 29, 2024. This consolidation will convert every twenty pre-consolidation shares into one post-consolidation share. The consolidation aims to reduce the number of issued and outstanding common shares from approximately 14.36 million to around 718,078, maintaining each shareholder's relative ownership percentage.
The adjustment will also proportionally affect the exercise price and number of common shares issuable upon the exercise of outstanding stock options, warrants, or other convertible securities. No fractional shares will be issued due to the consolidation.
Shareholders with physical share certificates will receive a letter of transmittal with instructions, while those holding uncertificated shares will have their accounts automatically adjusted. The company's trading symbol "INM" will remain the same, although the common shares will trade under new CUSIP and ISIN numbers post-consolidation.
InMed is taking definitive steps to complete the consolidation and regain compliance with the Minimum Bid Price Rule by the set deadline. However, the company indicates there is no guarantee that it will achieve compliance by the Requisite Compliance Date.
This news is based on a press release statement and contains forward-looking information subject to risks and uncertainties that could affect the company's ability to meet Nasdaq's listing requirements.
In other recent news, InMed Pharmaceuticals has been making significant strides in its Alzheimer's disease program with its proprietary drug candidate, INM-901. Recent preclinical studies have shown that INM-901 can be effectively administered orally, achieving drug concentration levels in the brain comparable to those from intraperitoneal injection. This development could offer considerable benefits over current intravenous antibody therapies for Alzheimer's, potentially reducing treatment delivery costs and improving patient accessibility. The company has also filed an international patent application for INM-901, aiming to protect its research and development in the area of neurodegeneration.
InMed Pharmaceuticals has also announced the date for its 2024 annual meeting of shareholders and initiated an appeal process with the Nasdaq Listing Qualifications Panel to address non-compliance with the stock market's minimum bid price requirement. As the company navigates through the appeal and potential outcomes, the future of InMed Pharmaceuticals on the Nasdaq Capital Market remains uncertain.
These are among the recent developments in the company's ongoing efforts to address diseases with unmet medical needs. InMed is also advancing the chemistry, manufacturing, and controls for both the drug substance and the drug product formulation.
InvestingPro Insights
InMed Pharmaceuticals' recent struggles with Nasdaq compliance are reflected in its financial metrics and market performance. According to InvestingPro data, the company's market capitalization stands at a modest $3.24 million, highlighting its small-cap status. This aligns with the company's efforts to address its share price deficiency through a proposed share consolidation.
InvestingPro Tips reveal that InMed is "quickly burning through cash" and "not profitable over the last twelve months," with an operating income margin of -176.92% for the last twelve months as of Q4 2024. These factors underscore the urgency of the company's strategic initiatives to enhance shareholder value and regain compliance with Nasdaq requirements.
Despite these challenges, InMed shows some positive signs. An InvestingPro Tip notes that the company "holds more cash than debt on its balance sheet," which could provide some financial flexibility as it navigates this critical period. Additionally, the stock has shown a "strong return over the last three months," with a 79.07% price total return, potentially indicating some investor optimism about the company's turnaround efforts.
For investors seeking a more comprehensive analysis, InvestingPro offers 13 additional tips for InMed Pharmaceuticals, providing deeper insights into the company's financial health and market position.
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