Psychedelic drug company Bright Minds Biosciences Inc. (CSE: DRUG) (NASDAQ: DRUG) has set the date to consolidate its common shares on a five to one basis in order to boost its share price and regain compliance with the Nasdaq.
The company’s post-consolidation shares are expected to begin trading on the Canadian Securities Exchange and The NASDAQ Capital Market on July 14, 2023. The name of the company and trading symbol will remain the same after the split. Following the consolidation, the company’s CUSIP number will be 10919W405 and the new ISIN number will be CA10919W4056.
The reverse split had been approved by the company’s board of directors in accordance with the Articles of the Company in June. Bright Minds currently has 18,860,359 common shares issued and outstanding. Once the split is completed, the company is expected to have approximately 3,772,071 Common Shares issued and outstanding, subject to rounding for fractional Common Shares.
The company said it is doing the reverse split to increase its attractiveness to investors and to provide the company with a path to regain compliance with the Nasdaq Stock Market LLC minimum bid price requirement set forth in Nasdaq Listing Rule 5550(a)(2), as disclosed in the company’s news release dated January 27, 2023.
The 52-week high for the stock was $4.75, but it dipped as low as 40 cents. It was lately selling at roughly $0.55. Nasdaq stocks must be priced over one dollar, but the exchange gives companies months to bring the stock price higher if it falls below one dollar.
Four months ago CEO Ian McDonald said, “We are pleased with the progress of our Phase 1 first-in-human trial of BMB-101 and believe there are large potential market opportunities for the treatment of refractory epilepsies, beyond Dravet syndrome and a host of other indications, such as psychosis and addiction disorders. Through an extensive medicinal chemistry and rational drug design program, Bright Minds has successfully developed 5-HT2C, 5-HT2A and 5-HT2A/2C agonists devoid of 5-HT2B agonism. We are progressing our next-generation psychedelics program and have nominated two clinical candidates. BMB-202, a fast, Cmax driven 5-HT2A agonist for the treatment of depression, is expected to enter a first-in-human trial late this year. The team has put in place a top-tier development organization with clinical, regulatory, manufacturing, and controls functions for future product pipeline investigational new drug submissions in the United States.”