NEW YORK - Psyence Biomedical Ltd. (NASDAQ:PBM), a biopharmaceutical company specializing in psychedelic-based therapeutics, has set the effective date for its share consolidation. The company's common shares will start trading on a consolidated basis from Tuesday, November 26, 2024, following shareholder approval at the Annual General and Special Meeting on November 12, 2024.
The consolidation will merge every 75 existing common shares into one new share. This move aims to comply with Nasdaq's minimum bid price requirement for continued listing on The Nasdaq Global Market. Post-consolidation, the shares will retain the ticker 'PBM' but will be identified by a new CUSIP number, 74449F209.
Psyence Biomed's consolidation is designed to affect all shareholders uniformly without altering their percentage interest in the company, except for minor adjustments due to fractional shares. No fractional shares will be issued; instead, they will be rounded down or up to the nearest whole share, depending on the fraction size.
Adjustments will also be made to the number of shares and exercise price of outstanding warrants. Continental Stock Transfer & Trust Company will act as the exchange agent and transfer agent for the consolidation process. Shareholders with book-entry shares or those held in brokerage accounts are not required to take any action. However, beneficial holders are advised to consult their financial institutions for any procedural inquiries.
Psyence Biomed is recognized for being one of the few vertically integrated biopharmaceutical companies in the world focusing on non-synthetic psilocybin-based medicine, targeting unmet needs in mental health, particularly within palliative care.
The company cautions that this press release contains forward-looking statements, including those regarding the consolidation's effective date and the anticipated trading commencement on a split-adjusted basis. These statements are based on assumptions and subject to risks and uncertainties that could cause actual results to differ materially.
Information in this article is based on a press release statement from Psyence Biomedical Ltd. and has not been independently verified. It is important to note that the company has not conducted clinical trials for its proposed products, and their efficacy has not been established.
In other recent news, Psyence Biomedical has made several strategic moves. The company has added the Empax Center in Perth, Australia, as a second site for its Phase IIb clinical trial investigating the use of psilocybin for the treatment of Adjustment Disorder in palliative care patients. Furthermore, Psyence Biomedical has decided not to proceed with the acquisition of Clairvoyant Therapeutics, despite previous plans. In a different transaction, the company acquired an 11.13% stake in PsyLabs for $1.1 million to ensure a consistent supply of high-quality psilocybin for ongoing research.
The company has also entered into an exclusive licensing agreement with PsyLabs to secure a supply of EU GMP nature-derived psilocybin for future clinical trials. However, Psyence Biomedical has been notified by Nasdaq of its potential delisting due to failure to meet minimum market value requirements. The company plans to request a hearing before a Nasdaq Hearings Panel to delay any suspension or delisting actions.
These recent developments reflect Psyence Biomedical's commitment to the development of treatments for mental health conditions using psychedelic substances. As always, these developments are subject to various conditions and approvals.
InvestingPro Insights
Psyence Biomedical's upcoming share consolidation comes at a critical time for the company, as reflected in recent financial data from InvestingPro. The company's market capitalization stands at a modest $0.9 million, indicating its current small-cap status in the biopharmaceutical sector.
InvestingPro data reveals that Psyence has faced significant challenges in the market, with a staggering year-to-date price total return of -99.42% as of the latest available data. This dramatic decline underscores the urgency of the share consolidation to meet Nasdaq's minimum bid price requirements and maintain its listing status.
The company's financial health appears strained, with an adjusted operating income of -$2.75 million for the last twelve months. This negative figure aligns with the nature of early-stage biopharmaceutical companies that are still in the research and development phase, often requiring substantial investments before generating revenue.
An InvestingPro Tip highlights that Psyence Biomedical's stock price is near its 52-week low, currently at just 0.36% of its 52-week high. This tip provides context to the company's decision to consolidate shares, as it aims to boost its share price and maintain compliance with Nasdaq listing requirements.
Another relevant InvestingPro Tip notes that analysts do not expect the company to be profitable this year. This insight aligns with the negative earnings per share (EPS) of -$7.85 reported for the last twelve months, reflecting the company's current focus on research and development rather than immediate profitability.
For investors seeking a deeper understanding of Psyence Biomedical's financial position and market performance, InvestingPro offers 9 additional tips that could provide valuable insights into the company's prospects and challenges in the competitive psychedelic therapeutics market.
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