NEW YORK - Psyence Biomedical Ltd. (NASDAQ:PBM), a biotechnology firm specializing in psilocybin-based therapeutics, has been notified by Nasdaq that it currently fails to meet the exchange's minimum market value requirements. The notice, received on Thursday, follows a previous warning issued on March 11, 2024, concerning the company's non-compliance.
The Nasdaq Listing Qualifications Department informed Psyence that its Market Value of Listed Securities (MVLS) and Market Value of Publicly Held Shares (MVPHS) remained below the required thresholds. The MVLS should be at least $50 million, and the MVPHS must be a minimum of $15 million for continued listing on The Nasdaq Global Market, under Nasdaq Listing Rules.
Psyence was initially given 180 days, until September 9, 2024, to regain compliance. The firm plans to request a hearing before a Nasdaq Hearings Panel, which will delay any suspension or delisting actions until the panel's decision post-hearing.
Psyence Biomedical is known for its focus on developing non-synthetic, nature-derived psychedelic medicines aimed at treating mental health disorders, particularly within palliative care settings. The company's approach combines psychedelics and science in an evidence-based framework.
The recent developments raise concerns about Psyence's ability to maintain its Nasdaq listing. The company's future on the exchange is contingent on the outcomes of the forthcoming hearing and its ability to meet Nasdaq's market value criteria.
This announcement is based on a press release statement from Psyence Biomedical Ltd. and reflects the current situation regarding the company's listing status. Investors are reminded that forward-looking statements involve risks and uncertainties, and actual events or results may differ materially.
In other recent news, Psyence Biomed Ltd. announced a conditional agreement to acquire Canada-based clinical-stage company Clairvoyant Therapeutics Inc. This acquisition aims to expand Psyence Biomed's pipeline with a synthetic psilocybin candidate for treating Alcohol Use Disorder (AUD). The agreement stipulates that Psyence Biomed will issue $500,000 in common shares to Clairvoyant's shareholders upon closing, with additional share-based payments of up to $500,000 tied to pre-specified milestones by December 2026.
In a separate development, Psyence Biomed has entered into an exclusive licensing agreement with PsyLabs to secure a supply of EU GMP nature-derived psilocybin. This agreement is expected to advance clinical trials for the treatment of AUD and other Substance Use Disorders (SUDs). PsyLabs, federally licensed to cultivate and export psilocybin mushrooms for medical and research purposes, will supply Psyence Biomed with pharmaceutical-grade psilocybin for future clinical trials.
These are recent developments in the company's operations. Psyence Biomed continues to emphasize evidence-based approaches in developing treatments for mental health disorders. All these developments are subject to various conditions and approvals.
InvestingPro Insights
Psyence Biomedical Ltd.'s market capitalization has been under scrutiny, and recent data from InvestingPro sheds light on the company's financial health. As of the last twelve months ending in Q4 2024, Psyence Biomedical's adjusted market cap stands at a mere 2.72 million USD, reflecting the challenges it faces in meeting Nasdaq's minimum market value requirements.
The company's performance metrics also reveal significant headwinds. The P/E ratio, which helps investors understand the company's earnings relative to its share price, is deeply negative at -0.19, indicating that Psyence is not generating positive earnings at this time. Additionally, the firm's operating income, EBIT, and EBITDA are all reported at -2.75 million USD, underscoring the financial difficulties that have led to the compliance issues with Nasdaq.
InvestingPro Tips highlight the importance of tracking price returns as an indicator of investor sentiment and market performance. Psyence's 1-year price total return has plummeted by an alarming -98.53%, and the price is currently at a mere 1.07% of its 52-week high. This drastic decline is a crucial factor for investors to consider, especially in the context of the company's potential delisting risks.
For investors and stakeholders seeking a deeper analysis, InvestingPro provides additional tips, with a current count of over 10 insightful tips available, to help navigate the complexities of market value assessments and investment decisions.
Psyence Biomedical's recent trading activity also indicates heightened investor attention, with an average daily volume over the last three months reaching 3.33 million USD, despite the company's precarious market position. This level of trading activity may reflect market participants' speculative interest or their response to the company's current compliance challenges and future prospects.
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