NEW YORK - Psyence Biomedical Ltd. (NASDAQ:PBM), a biopharmaceutical company specializing in psychedelic-based therapeutics, announced today that it has been granted an extension to meet Nasdaq's continued listing requirements. The Nasdaq Hearings Panel has given Psyence Biomed until December 31, 2024, to comply with the minimum bid price, market value of publicly held shares, and stockholders' equity requirements.
During the October 31, 2024, hearing, the company presented a detailed plan to regain compliance, which included a shift from The Nasdaq Global Market to The Nasdaq Capital Market effective November 15, 2024. Additionally, a shareholder-approved 1-for-75 share consolidation is expected to meet the $1 minimum bid price requirement.
Dr. Neil Maresky, CEO of Psyence Biomed, expressed satisfaction with the Panel's decision, emphasizing the importance of Nasdaq listing for attracting healthcare-focused institutional investors. He highlighted the company's focus on advancing their pipeline of psilocybin-based treatments for mental health and addiction.
Psyence Biomed is recognized as one of the first companies to list on Nasdaq that is developing non-synthetic, nature-derived psychedelic medicine, targeting unmet needs in mental health within palliative care. The company combines psychedelics and science to create evidence-based therapeutics.
The Panel has reserved the right to review the terms of the extension if any developments occur that could affect the advisability or appropriateness of the company's securities listing on the Exchange.
This announcement is based on a press release statement from Psyence Biomedical Ltd. The forward-looking statements included in the release involve assumptions and risks that could cause actual results to differ, including potential delays in share consolidation and maintaining Nasdaq listing, among others. The efficacy of Psyence Biomed's products has not been confirmed by approved research, and clinical trials are yet to be conducted. Compliance with regulatory authorities remains critical for the company's future operations and performance.
In other recent news, Psyence Biomedical has announced a share consolidation effective from late November 2024, merging every 75 existing common shares into one new share. This is intended to comply with Nasdaq's minimum bid price requirement. In addition, the biopharmaceutical company has added the Empax Center in Perth, Australia, as a second site for its Phase IIb clinical trial investigating psilocybin for the treatment of Adjustment Disorder in palliative care patients.
Psyence Biomedical has decided not to proceed with the acquisition of Clairvoyant Therapeutics, despite previous plans. On another note, 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. Furthermore, Psyence Biomedical has entered into an exclusive licensing agreement with PsyLabs to secure a supply of EU GMP nature-derived psilocybin for future clinical trials.
However, the company has been notified by Nasdaq of its potential delisting due to failure to meet minimum market value requirements. Psyence Biomedical 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.
InvestingPro Insights
Psyence Biomedical's financial metrics paint a challenging picture, aligning with the company's struggle to meet Nasdaq's listing requirements. According to InvestingPro data, the company's market capitalization stands at a modest $0.88 million, reflecting its current financial position. The negative P/E ratio of -0.06 over the last twelve months as of Q4 2024 indicates that the company is not yet profitable, which is not uncommon for early-stage biopharmaceutical companies focused on research and development.
The company's stock performance has been particularly concerning, with a one-year price total return of -99.54% as of the latest data. This steep decline underscores the urgency of the company's plan to regain compliance with Nasdaq's minimum bid price requirement through the proposed 1-for-75 share consolidation.
InvestingPro Tips highlight additional challenges and potential opportunities:
1. Psyence Biomedical is currently unprofitable, which is reflected in its negative earnings per share of -$7.85 for the last twelve months as of Q4 2024.
2. The company's stock is trading near its 52-week low, with the current price at just 0.36% of its 52-week high.
These insights from InvestingPro provide context to Psyence Biomedical's current situation and the importance of its compliance plan. Investors considering this stock should be aware that InvestingPro offers 12 additional tips for a more comprehensive analysis of Psyence Biomedical's financial health and market position.
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