Psyence Biomedical Regains Full Compliance with All Nasdaq Continued Listing Requirements

Rhea-AI Summary

Psyence Biomedical (Nasdaq: PBM) has regained full compliance with all Nasdaq continued listing requirements following several strategic moves. The company transferred from Nasdaq Global Market to Nasdaq Capital Market on November 15, 2024, meeting the $1.0 million minimum market value and $2.5 million minimum stockholders' equity requirements. A 75-for-1 share consolidation, effective November 26, 2024, addressed the $1 minimum bid price requirement, with shares trading above $1 for 18 consecutive trading days. The company enters 2025 with a $5.6 million cash position and debt-free balance sheet, positioning itself to execute its business plan and proceed with patient screening for clinical trials.

Positive

• Regained full compliance with Nasdaq listing requirements
• Strong cash position of $5.6 million
• Debt-free balance sheet
• Successfully completed 75-for-1 share consolidation
• Patient screening for clinical trial has commenced

Negative

• Required transfer to Nasdaq Capital Market from Global Market
• Needed significant share consolidation (75-for-1) to meet minimum bid requirements

Insights

Financial Analyst

This regulatory compliance update carries significant weight for PBM's market position. The successful transfer to Nasdaq Capital Market and completion of a 75:1 share consolidation represents a important financial restructuring. The $5.6 million cash position, coupled with a debt-free balance sheet, provides approximately 12-18 months of operational runway at typical biotech burn rates. The share consolidation effectively reduced the float while maintaining market cap, potentially improving trading dynamics. Meeting Nasdaq's continued listing requirements removes a major overhang and risk of delisting, which typically triggers forced selling by institutional investors. However, the 75:1 consolidation ratio is notably aggressive, suggesting significant previous share price deterioration. The transfer to Nasdaq Capital Market, while maintaining listing status, indicates reduced market presence compared to the Global Market tier. From a technical perspective, post-consolidation price stability above $1 demonstrates some market confidence, though volume and price action should be monitored closely in the coming months.

Market Research Analyst

The strategic compliance achievements position PBM more favorably in the micro-cap biotech landscape. The transition to Nasdaq Capital Market, while technically a step down, maintains important market access and visibility for retail and institutional investors. The $5.6 million cash reserve, particularly in a debt-free context, strengthens the company's negotiating position for potential future capital raises or partnerships. The share consolidation's success in maintaining prices above $1 for 18 consecutive trading days indicates positive market reception. However, investors should note that historical patterns show post-consolidation stocks often face selling pressure once compliance is achieved. The commencement of patient screening for clinical trials adds operational momentum, though trial costs will likely accelerate cash burn. Market sentiment typically improves when regulatory uncertainties are resolved, potentially attracting institutional investors who previously avoided the stock due to listing concerns.

Company poised to enter 2025 with cash position of $5.6 million and debt-free balance sheet

NEW YORK, Dec. 23, 2024 (GLOBE NEWSWIRE) -- Psyence Biomedical Ltd. (Nasdaq: PBM) (“Psyence Biomed” or the “Company”) today announced that it has received notice from the Nasdaq Hearings panel that the Company has regained compliance with all applicable Nasdaq continued listing requirements.

As previously announced, Psyence Biomed requested to be transferred from The Nasdaq Global Market to The Nasdaq Capital Market, effective November 15, 2024. As a result of this transfer, the Company regained compliance with listing rules 5550(a)(5), the $1.0 million minimum market value of publicly held shares requirement, and 5550(b)(1), the $2.5 million minimum stockholders’ equity requirement.

Additionally, the Company obtained shareholder approval during its Annual General Meeting on November 12, 2024 to effect a 75-for-1 share consolidation. This share consolidation, which went into effect on November 26, 2024, was intended to address Nasdaq’s listing rule 5550(a)(2), the $1 minimum bid price requirement. As the Company’s shares have traded above $1 for the subsequent 18 trading days following the share consolidation, the minimum bid price requirement has been formally satisfied.

“We are grateful to the Nasdaq Hearings Panel for allowing us the opportunity to demonstrate compliance with all Nasdaq continued listing rules, and we are pleased to have achieved this goal,” stated Dr. Neil Maresky, M.B., B.Ch., Chief Executive Officer of Psyence Biomed. “With Nasdaq compliance, a debt free balance sheet and a cash position of $5.6 million, the Company is well positioned to execute its business plan and clinical trial, for which patient screening has commenced.”

About Psyence Biomed:

Psyence Biomedical Ltd. (Nasdaq: PBM) is one of the world’s few vertically integrated biopharmas with a focus on psychedelic-based pharmaceutical therapeutics. The first life science biotechnology company developing nature-derived (non-synthetic) psilocybin-based psychedelic medicine to be listed on Nasdaq, Psyence is initially working to address the unmet needs of patients who suffer from mental health disorders in the context of Palliative Care. The name “Psyence” combines the words “psychedelics” and “science” to affirm Psyence Biomed’s commitment to an evidence-based approach to innovation as it works to develop safe and effective, FDA-approved, nature-derived psychedelic therapeutics to treat a broad range of mental health disorders.

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

Contact Information for Psyence Biomedical Ltd.
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

Forward Looking Statements
This communication contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements about future financial and operating results, our plans, objectives, expectations and intentions with respect to future operations, products and services; and other statements identified by words such as "will likely result," "are expected to," "will continue," "is anticipated," "estimated," "believe," "intend," "plan," "projection," "outlook" or words of similar meaning.

Forward-looking statements in this communication include statements regarding the progress of the Phase IIb clinical trial and the achievement of trial milestones, and the regaining of compliance with all applicable Nasdaq continued listing requirements. These forward-looking statements are based on a number of assumptions, including the assumption that there will be no delays in the execution of the Phase IIb clinical trial implementation schedule, that topline data from this trial will be positive, and that the Company will effectively execute on its Nasdaq continued listing compliance plan. There can be no assurance that the Company will continue to maintain compliance with Nasdaq’s continued listing requirements.

There are numerous risks and uncertainties that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, among others: (i) delays in the execution of the Phase IIb trial; (ii) the ability of Psyence Biomed to maintain the listing of its common shares and warrants on Nasdaq; (iii) the ability to implement the Nasdaq compliance plan presented to the Panel; and (iv) volatility in the price of the securities of Psyence Biomed due to a variety of factors, including the recent share consolidation, changes in the competitive and highly regulated industries in which Psyence Biomed operates, variations in performance across competitors, changes in laws and regulations affecting Psyence Biomed’s business and changes in Psyence Biomed’s capital structure. The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties described in the "Risk Factors" section of the Company’s Form 20-F filed with the Securities and Exchange Commission (the “SEC”) on July 29, 2024 and other documents filed by Psyence Biomed from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Actual results and future events could differ materially from those anticipated in such information. Nothing in this communication should be regarded as a representation by any person that the forward-looking statements set forth herein will be achieved or that any of the contemplated results of such forward-looking statements will be achieved. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. Except as required by law, Psyence Biomed does not intend to update these forward-looking statements.

The Company does not make any medical, treatment or health benefit claims about its proposed products. The U.S. Food and Drug Administration, Health Canada or other similar regulatory authorities have not evaluated claims regarding psilocybin, psilocybin analogues, or other psychedelic compounds or nutraceutical products. The efficacy of such products has not been confirmed by approved research. There is no assurance that the use of psilocybin, psilocybin analogues, or other psychedelic compounds or nutraceuticals can diagnose, treat, cure or prevent any disease or condition. Vigorous scientific research and clinical trials are needed. The Company has not conducted clinical trials for the use of the proposed products. Any references to quality, consistency, efficacy, and safety of potential products do not imply that the Company has verified such in clinical trials or that the Company will complete such trials. If the Company cannot obtain the approvals or research necessary to commercialize its business, it may have a material adverse effect on the Company’s performance and operations.

FAQ

What changes did Psyence Biomedical (PBM) make to regain Nasdaq compliance in 2024?

Psyence Biomedical transferred to Nasdaq Capital Market on November 15, 2024, and implemented a 75-for-1 share consolidation on November 26, 2024, to meet minimum bid price, market value, and stockholders' equity requirements.

What is Psyence Biomedical's (PBM) financial position entering 2025?

Psyence Biomedical is entering 2025 with a $5.6 million cash position and a debt-free balance sheet.

When did Psyence Biomedical (PBM) complete its 75-for-1 share consolidation?

Psyence Biomedical completed its 75-for-1 share consolidation on November 26, 2024, following shareholder approval at the Annual General Meeting on November 12, 2024.

What are the current Nasdaq listing requirements that PBM had to meet?

PBM had to meet three requirements: $1.0 million minimum market value of publicly held shares, $2.5 million minimum stockholders' equity, and $1 minimum bid price.