Clearmind Medicine Inc. Announces Reverse Share Split to Comply with Nasdaq Regulations

NEW YORK- Clearmind Medicine Inc., a biotech company renowned for its innovative work in developing psychedelic-derived therapeutics, has announced a strategic decision to conduct a reverse share split of its ordinary shares. This move is aimed at regaining compliance with the Nasdaq Minimum Bid Price Rule. The reverse split, set at a ratio of 1-for-30, is scheduled to take effect on November 28, 2023.

The decision for the reverse share split was ratified by the company’s shareholders during the general shareholders meeting held on November 14, 2023, and was later formalized by the board of directors. This corporate action is a part of Clearmind’s broader strategy to align with Nasdaq’s listing standards, ensuring the company remains an attractive option for investors seeking exposure to the burgeoning field of psychedelic medicine.

Following the reverse split, Clearmind’s issued and outstanding ordinary shares will undergo a significant reduction. Specifically, the number of Common Shares will decrease from 18,221,419 to 607,381, subject to adjustments related to fractional shares. The company’s authorized share capital, however, will remain unchanged and stands unlimited as of the current date.

An important aspect of this reverse split is the handling of fractional shares. No fractional Common Shares will be issued post-split. Instead, all fractional shares will be rounded up to the nearest whole Common Share. Additionally, this split will entail a proportionate adjustment in the per share exercise price and the number of Common Shares available for options or warrants. This adjustment ensures that the rights of holders of these instruments remain equitable post-split.

Clearmind’s move to execute a reverse share split underscores the company’s commitment to maintaining its listing on a prestigious platform like Nasdaq, which is crucial for attracting global investors. The company’s focus on developing novel treatments for under-treated health problems, especially leveraging the potential of psychedelic compounds, positions it at the forefront of an emerging and rapidly evolving sector in biotechnology. This strategic adjustment in share structure is a key step in Clearmind’s journey towards long-term growth and compliance with market regulations.