InMed Granted 180-Day Extension to Achieve Nasdaq Minimum Bid Compliance
InMed Pharmaceuticals Inc. (NASDAQ: INM) has been granted an additional 180-day compliance period by Nasdaq to meet the minimum bid price requirement for continued listing. The company must achieve a closing bid price of at least $1.00 per share for 10 consecutive business days by September 16, 2024, to regain compliance.
The extension granted by Nasdaq to InMed Pharmaceuticals Inc. for compliance with the minimum bid price requirement is a temporary relief that buys the company additional time to improve its stock performance. The bid price rule is a common regulatory measure to ensure that securities maintain a certain level of market credibility and investor interest. The company's consideration of a reverse stock split, which is a reduction in the number of outstanding shares to boost the share price, could be seen as a short-term remedial action but does not inherently improve the company's underlying financial health or market value.
Investors should monitor the company's operational progress and financial results during this period, as these are the factors that will ultimately drive the stock's value and determine whether it can organically meet Nasdaq's requirements. The extension could also be interpreted as a signal that the company is facing ongoing challenges in enhancing shareholder value, which may affect investor confidence and the stock's attractiveness in the market.
InMed Pharmaceuticals operates in the niche market of rare cannabinoids, a sector with growing interest due to potential therapeutic applications. The industry's regulatory landscape is complex and evolving, which can influence company valuations and stock performance. The notice from Nasdaq indicates that InMed has maintained sufficient market value of publicly held shares, suggesting that there is still market interest in their business model and potential growth.
However, the threat of delisting can put pressure on a company to take drastic measures that may not align with long-term strategic goals. It is essential to consider industry trends, such as the increasing demand for cannabinoid-based products and the competitive landscape, to assess whether InMed's efforts during the Extended Compliance Period could lead to a sustainable increase in stock price or if the company is at risk of further volatility.
From a legal and compliance perspective, the notification from Nasdaq serves as a procedural checkpoint in the company's ongoing efforts to maintain its listing status. The regulatory framework of the Nasdaq Capital Market requires companies to adhere to specific standards, including the Minimum Bid Price Rule, to protect investors and maintain orderly market operation. InMed's receipt of an extended compliance period reflects the company's proactive engagement with Nasdaq's requirements and its commitment to exploring all available options to regain compliance.
Investors should be aware of the potential implications of a reverse stock split, as it can affect the number of shares they hold and may have tax consequences. Additionally, if the company fails to regain compliance within the Extended Compliance Period, it may face delisting, which could impact liquidity and the ability to trade the stock. The legal intricacies of these processes are significant for stakeholders to understand when evaluating their investment in the company.
03/20/2024 - 08:30 AM
Vancouver, British Columbia--(Newsfile Corp. - March 20, 2024) - InMed Pharmaceuticals Inc. (NASDAQ: INM) ("InMed" or the "Company"), a leader in the manufacturing, development and commercialization of rare cannabinoids and proprietary cannabinoid analogs, today announced that it has received a notification letter from the Listing Qualifications Department of Nasdaq Stock Market LLC ("Nasdaq") that the Company has been granted an additional 180-day compliance period, or until September 16, 2024 (the "Extended Compliance Period"), to regain compliance with Nasdaq's minimum bid price requirement for the continued listing on the Nasdaq Capital Market, as set forth in Nasdaq Listing Rule 5550(a)(2) (the "Minimum Bid Price Rule").
Nasdaq's determination is based on the Company meeting the continued listing requirement for market value of publicly held shares and all other applicable requirements for initial listing on the Nasdaq Capital Market, with the exception of the bid price requirement, and the Company's written notice of its intention to consider all available options to regain compliance during the Extended Compliance Period, including, if necessary, effecting a reverse stock split.
If at any time prior to September 16, 2024, the closing bid price of the Company's ordinary shares is at least $1.00 per share for at least a minimum of 10 consecutive business days, the Company will regain compliance with the Minimum Bid Price Rule and this matter will be closed.
As previously reported, in a notification letter dated September 19, 2023, Nasdaq had informed the Company that, based on the previous 30 consecutive business days, the Company's ordinary shares no longer met the minimum $1.00 b id price per share requirement as set forth in the Minimum Bid Price Rule. Therefore, in accordance with the Nasdaq Listing Rules, the Company was provided 180 calendar days, or until March 18, 2024, to regain compliance with such requirement.
This current notification from Nasdaq has no immediate effect on the listing or trading of the Company's ordinary shares, which will continue to trade on the Nasdaq Capital Market under the symbol "INM."
About InMed: www.inmedpharma.com .
Investor Contact: cclancy@inmedpharma.com
Cautionary Note Regarding Forward-Looking Information:
Beyond the foregoing, there are additional known and unknown risk factors and uncertainties, any of which could cause InMed's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information contained herein. A further discussion of these risks and uncertainties facing InMed's stand-alone business is contained in InMed's most recent Annual Report on Form 10-K and other filings the Company makes with the Securities and Exchange Commission from time to time on www.sec.gov .
All forward-looking information herein is qualified in its entirety by this cautionary statement, and InMed disclaims any obligation to revise or update any such forward-looking information or to publicly announce the result of any revisions to any of the forward-looking information contained herein to reflect future results, events or developments, except as required by applicable law.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/202334
What is the ticker symbol of InMed Pharmaceuticals Inc. mentioned in the PR?
The ticker symbol of InMed Pharmaceuticals Inc. is 'INM'.
What is the compliance period granted to InMed Pharmaceuticals Inc. by Nasdaq?
Nasdaq has granted InMed Pharmaceuticals Inc. an additional 180-day compliance period to meet the minimum bid price requirement for continued listing.
What is the closing bid price InMed Pharmaceuticals Inc. needs to achieve for compliance?
InMed Pharmaceuticals Inc. must achieve a closing bid price of at least $1.00 per share for a minimum of 10 consecutive business days to regain compliance with Nasdaq's minimum bid price requirement.
What happens if InMed Pharmaceuticals Inc. does not meet the bid price requirement by September 16, 2024?
If InMed Pharmaceuticals Inc. fails to achieve a closing bid price of at least $1.00 per share for 10 consecutive business days by September 16, 2024, it may face potential consequences related to its listing on the Nasdaq Capital Market.
