Clearmind Medicine Receives Nasdaq Notification Regarding Minimum Stockholders' Equity Deficiency
Rhea-AI Summary
Clearmind Medicine (Nasdaq: CMND) received a Nasdaq Listing Qualifications notice dated November 3, 2025, for failure to meet Nasdaq Listing Rule 5550(b)(1), which requires $2,500,000 minimum stockholders' equity.
The company reported $1,065,668 of stockholders' equity as of its Form 6-K for the three and nine months ended July 31, 2025. Clearmind has 45 calendar days (until December 18, 2025) to submit a compliance plan; Nasdaq may grant up to 180 days total if the plan is accepted.
Management is evaluating options to regain compliance, including conversion of previously announced convertible promissory notes (up to $10,000,000). To date $1,045,062 of notes converted into 885,000 common shares on October 30–31, 2025, and the company expects further conversions could demonstrate compliance, though acceptance is not assured.
Positive
- Convertible notes facility up to $10,000,000
- $1,045,062 of notes converted into 885,000 shares
- Nasdaq may grant up to 180 days if compliance plan accepted
Negative
- Stockholders' equity of $1,065,668 versus required $2,500,000
- Company must file a compliance plan by Dec 18, 2025 (45 days)
- No assurance Nasdaq will accept plan or that compliance will be regained
- Further note conversions may cause shareholder dilution
News Market Reaction
On the day this news was published, CMND declined 5.75%, reflecting a notable negative market reaction. Argus tracked a trough of -22.9% from its starting point during tracking. Our momentum scanner triggered 26 alerts that day, indicating elevated trading interest and price volatility. This price movement removed approximately $247K from the company's valuation, bringing the market cap to $4M at that time.
Data tracked by StockTitan Argus on the day of publication.
The Notification Letter has no immediate effect on the Company's listing on the Nasdaq Capital Market at this time, nor are the Company's business operations affected by receipt of the Notification Letter
Vancouver, Canada, Nov. 06, 2025 (GLOBE NEWSWIRE) -- Clearmind Medicine Inc. (Nasdaq: CMND), (FSE: CWY0) (“Clearmind” or the "Company"), a clinical-stage biotech company focused on discovery and development of novel psychedelic-derived therapeutics to solve major under-treated health problems, today announced that the Company received a written notification (the "Notification Letter") from the Listing Qualifications Department of the Nasdaq Stock Market LLC ("Nasdaq") dated November 3, 2025, notifying the Company that it is no longer in compliance with Nasdaq Listing Rule 5550(b)(1) (the "Rule").
The Rule requires companies listed on the Nasdaq Capital Market to maintain a minimum of
The Notification Letter has no immediate effect on the Company's listing on the Nasdaq Capital Market at this time and the Company’s common shares continue to trade on Nasdaq Capital Market under the symbol “CMND”, nor are the Company's business operations affected by receipt of the Notification Letter. In accordance with the Nasdaq Listing Rules, the Company has 45 calendar days, or until December 18, 2025, to submit a plan to regain compliance. If the plan is accepted, Nasdaq can grant an extension of up to 180 calendar days from receipt of the Notification Letter to evidence compliance.
The Company is looking into various options available to regain compliance and maintain its continued listing on the Nasdaq Capital Market. The Company intends to submit the compliance plan as soon as practicable. There can be no assurance that the Company's plan will be accepted or the Company will be able to regain compliance with the Rule.
As previously announced, on September 17, 2025, the Company entered into securities purchase agreements with investors pursuant to which the Company shall issue and sell, from time to time, convertible promissory notes (the “Notes”) in the aggregate principal amount of up to
About Clearmind Medicine Inc.
Clearmind is a clinical-stage psychedelic pharmaceutical biotech company focused on the discovery and development of novel psychedelic-derived therapeutics to solve widespread and underserved health problems, including alcohol use disorder. Its primary objective is to research and develop psychedelic-based compounds and attempt to commercialize them as regulated medicines, foods or supplements.
The Company’s intellectual portfolio currently consists of nineteen patent families including 31 granted patents. The Company intends to seek additional patents for its compounds whenever warranted and will remain opportunistic regarding the acquisition of additional intellectual property to build its portfolio.
Shares of Clearmind are listed for trading on Nasdaq under the symbol "CMND" and the Frankfurt Stock Exchange under the symbol “CWY0.”
For further information visit: https://www.clearmindmedicine.com or contact:
Investor Relations
invest@clearmindmedicine.com
Telephone: (604) 260-1566
US: CMND@crescendo-ir.com
General Inquiries
Info@Clearmindmedicine.com
www.Clearmindmedicine.com
Forward-Looking Statements:
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act and other securities laws. Words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates” and similar expressions or variations of such words are intended to identify forward-looking statements. For example, the Company is using forward-looking statements when it discusses regaining compliance with Nasdaq's continued listing requirements, timing and effect thereof and Company’s expectation that if additional portions of the convertible promissory notes that the Company shall issue and sell, from time to time, will be converted, the Company will be able to demonstrate compliance with the Nasdaq stockholders’ equity requirement. Forward-looking statements are not historical facts, and are based upon management’s current expectations, beliefs and projections, many of which, by their nature, are inherently uncertain. Such expectations, beliefs and projections are expressed in good faith. However, there can be no assurance that management’s expectations, beliefs and projections will be achieved, and actual results may differ materially from what is expressed in or indicated by the forward-looking statements. Forward-looking statements are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in the forward-looking statements. For a more detailed description of the risks and uncertainties affecting the Company, reference is made to the Company’s reports filed from time to time with the Securities and Exchange Commission (“SEC”), including, but not limited to, the risks detailed in the Company’s annual report on Form 20-F for the fiscal year ended October 31, 2024 and subsequent filings with the SEC. Forward-looking statements speak only as of the date the statements are made. The Company assumes no obligation to update forward-looking statements to reflect actual results, subsequent events or circumstances, changes in assumptions or changes in other factors affecting forward-looking information except to the extent required by applicable securities laws. If the Company does update one or more forward-looking statements, no inference should be drawn that the Company will make additional updates with respect thereto or with respect to other forward-looking statements. References and links to websites have been provided as a convenience, and the information contained on such websites is not incorporated by reference into this press release. Clearmind is not responsible for the contents of third-party websites.
FAQ
What does the Nasdaq notice mean for Clearmind (CMND) listing status?
How large is Clearmind's stockholders' equity shortfall at Nov 6, 2025?
What deadline does Clearmind have to submit a Nasdaq compliance plan?
Can Nasdaq extend the compliance period for CMND?
How could Clearmind restore Nasdaq compliance for CMND?
How much of the convertible notes has Clearmind already converted?
