Psyence Biomedical Ltd. Receives Nasdaq Notifications Regarding Market Value of Listed Securities and Market Value of Publicly Held Shares

Rhea-AI Summary

Psyence Biomedical (PBM) received deficiency notifications from Nasdaq regarding its Market Value of Listed Securities (MVLS) and Market Value of Publicly Held Shares (MVPHS) being below required minimums. The company has 180 days to regain compliance by increasing its market values. Failure to comply may lead to delisting.

Positive

• None.

Negative

• The company's market values have been below the required minimums for 30 consecutive business days, indicating financial challenges.
• There is uncertainty regarding the company's ability to regain compliance with Nasdaq listing standards within the given timeframe.

Insights

Market Analyst

The notification received by Psyence Biomedical Ltd. regarding its non-compliance with Nasdaq's Market Value of Listed Securities and Market Value of Publicly Held Shares standards is a significant indicator of the company's current market perception and financial health. A company's market value is often reflective of its operational efficiency, growth prospects and investor confidence. Falling below the minimum threshold for Nasdaq listing not only puts the company at risk of being delisted, which can severely limit its access to capital and increase the cost of funding, but also sends a negative signal to the market.

Investors and stakeholders should monitor how the company plans to address this issue. Strategies may include financial restructuring, strategic partnerships, or other measures to enhance value and investor interest. The company's ability to regain compliance will be important in maintaining its listing status and providing reassurance to investors. The 180-day grace period gives the company time to implement these measures, but it also creates a time-bound pressure to show tangible improvements.

Investment Strategist

For investors, the notices from Nasdaq serve as a cautionary tale about the liquidity and stability of Psyence Biomedical's stock. The MVLS and MVPHS are critical metrics because they reflect not only the company's capitalization but also the breadth and depth of its investor base. A low MVPHS, in particular, suggests that a significant portion of the company's shares are potentially concentrated in the hands of a few stakeholders, which can exacerbate volatility and reduce market liquidity.

The company's next steps, including any potential equity offerings or strategic actions to boost its share price and market value, could lead to dilution of existing shareholders' interests. While the pursuit of compliance is vital for the company's continued listing, it's important for investors to assess the potential impact of any corrective measures on their holdings. Long-term investors might view a successful turnaround strategy positively, but there is also a risk of short-term turbulence as the market reacts to the company's efforts to regain compliance.

Corporate Governance Advisor

Psyence Biomedical's situation underscores the importance of robust corporate governance and proactive management in addressing market compliance issues. The company's response to the Nasdaq notices will be telling of its governance quality. Transparent communication with shareholders about the steps being taken to regain compliance is key. Additionally, the board of directors should be involved in reviewing the company's strategic options, ensuring that any decisions made are in the best interest of the company and its shareholders.

Shareholders should look for signs of strong leadership and a clear strategic vision during this period. The management's track record in dealing with past compliance or financial challenges can also provide valuable context for current actions. It is not uncommon for companies in similar situations to explore options such as reverse stock splits or asset sales to increase their market value. These decisions will have to be weighed carefully for their potential to either stabilize the company's market position or, conversely, to create further disruption.

NEW YORK, March 15, 2024 (GLOBE NEWSWIRE) -- Psyence Biomedical Ltd. (the “Company”) (Nasdaq: PBM) announced that on March 11, 2024, it received two letters from the listing qualifications department staff of The Nasdaq Stock Market (“Nasdaq”), one notifying the Company (the “MVLS Notice”) that for the last 30 consecutive business days, the Company’s Market Value of Listed Securities (“MVLS”) was below the minimum of $50 million required for continued listing on the Nasdaq Global Market pursuant to Nasdaq Listing Rule 5450(b)(2)(A) (the “Market Value Standard”), and the other notifying the Company (the “MVPHS Notice”) that for the last 30 consecutive business days, the Company’s Market Value of Publicly Held Shares (“MVPHS”) was below the minimum of $15 million required for continued listing on the Nasdaq Global Market pursuant to Nasdaq Listing Rule 5450(b)(2)(C) (the “MVPHS Standard”).

The MVLS Notice and the MVPHS Notice are only notifications of deficiencies and have no immediate effect on the listing of the Company’s securities. The Company’s securities continue to trade on Nasdaq.

In accordance with Nasdaq Listing Rule 5810(c)(3)(C), the Company has 180 calendar days, or until September 9, 2024, to regain compliance with the Market Value Standard and the MVPHS Standard. The MVLS Notice states that to regain compliance, the Company’s MVLS must close at $50 million or more for a minimum of ten consecutive business days during the compliance period ending September 9, 2024, at which time Nasdaq will provide written notification that the Company has achieved compliance under the Market Value Standard and the matter will be closed. The MVPHS Notice states that to regain compliance, the Company’s MVPHS must close at $15 million or more for a minimum of ten consecutive business days during the compliance period ending September 9, 2024, at which time Nasdaq will provide written notification that the Company has achieved compliance under the MVPHS Standard and the matter will be closed.

The Company intends to actively monitor its MVLS and MVPHS and will evaluate available options to regain compliance with the Nasdaq continued listing standards. However, there can be no assurance that the Company will be able to regain compliance under the Market Value Standard and the MVPHS Standard, or will otherwise be in compliance with other Nasdaq listing criteria.

About Psyence Biomed:

Psyence Biomedical Ltd is a life science biotechnology company listed on Nasdaq (Nasdaq:PBM), with a focus on natural psychedelics. The Company is developing nature-derived psilocybin mushroom products for the healing of psychological trauma and its mental health consequences in the context of palliative care. Our name “Psyence” combines the words psychedelic and science to affirm our commitment to producing psychedelic medicines developed through evidence-based research. We work to develop advanced natural psilocybin products for clinical research and development.

Learn more at www.psyencebiomed.com and on LinkedIn.

Forward-Looking Statements

The press release includes certain statements that are not historical facts but are forward-looking statements for purposes of the safe harbor provisions under the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are accompanied by words such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “should,” “would,” “plan,” “predict,” “potential,” “seem,” “seek,” “future,” “outlook,” and similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, the Company’s ability to regain compliance with the Market Value Standard and the MVPHS Standard, its intentions to actively monitor its MVLS and MVPHS and its plans to evaluate available options to regain compliance with the Market Value Standard and the MVPHS Standard. These statements are based on various assumptions and on the current expectations of the Company’s management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on by any investor as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of the Company. These forward-looking statements are subject to a number of risks and uncertainties. A more complete discussion of the risks and uncertainties facing the Company is contained in the “Risk Factors” section of the proxy statement/prospectus forming a part of the Registration Statement on Form F-4 of the Company (File No. 333-273553) filed by the Company and other documents of the Company filed, or to be filed, with the Securities and Exchange Commission. If the risks materialize or assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that the Company presently does not know or that the Company currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect the Company’s expectations, plans or forecasts of future events and views as of the date hereof. The Company anticipates that subsequent events and developments will cause the Company’s assessments to change. However, while the Company may elect to update these forward-looking statements at some point in the future, the Company specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing the Company’s assessments as of any date subsequent to the date of this press release. Accordingly, undue reliance should not be placed upon the forward-looking statements.

Contact Information

Email: ir@psyencebiomed.com
Media Inquiries: media@psyencebiomed.com
General Information: info@psyencebiomed.com
Phone: +1 416-477-1708

Investor Contact:

Jeremy Feffer
Managing Director
LifeSci Advisors
jfeffer@lifesciadvisors.com

FAQ

What notifications did Psyence Biomedical receive from Nasdaq?

The company received notifications about its Market Value of Listed Securities (MVLS) and Market Value of Publicly Held Shares (MVPHS) being below required minimums.

What are the minimum market values required for continued listing on Nasdaq?

The minimum Market Value of Listed Securities (MVLS) required is $50 million, and the minimum Market Value of Publicly Held Shares (MVPHS) required is $15 million.

What is the deadline for Psyence Biomedical to regain compliance with Nasdaq listing standards?

The company has until September 9, 2024, to increase its market values and regain compliance with Nasdaq listing standards.

What happens if Psyence Biomedical fails to regain compliance within the specified timeframe?

Failure to comply with Nasdaq listing standards may lead to the delisting of the company's securities from Nasdaq.

What steps is Psyence Biomedical taking to address the deficiency notifications?

The company intends to actively monitor its market values and explore options to regain compliance with Nasdaq listing standards.

Is there a guarantee that Psyence Biomedical will regain compliance with Nasdaq listing standards?

There is no assurance that the company will be able to regain compliance with the Market Value Standard and the MVPHS Standard within the specified timeframe.