Psychedelics appear to be here to stay. Yet stocks, shares and finance are another story. On August 4, publicly traded clinical-stage psychedelics firm Mind Medicine Inc. MNMD announced its board of directors has approved a ratio of 1:15 reverse share split of its common shares.
The new distribution aims at enabling MindMed to achieve major corporate goals, providing it with greater flexibility for considering future business plans, and responding to the Nasdaq minimum bid price requirement.
Following British Columbia’s Business Corporations Act, there will be no fractional shares of common shares issued. As to remaining fractional common shares, those of less than 1/2 of a common share will be canceled, and those of 1/2 or more will be changed to one (1) common share.
The reverse share split plan is expected to become effective after the close of business on August 26, 2022. Regarding trading, it is expected to begin on the newly adjusted basis on both Nasdaq and Neo Exchange Inc. at the market opening on August 29.
In any case, MindMed will be shortly hosting a call to discuss the quarterly financial results and is expected to provide a business update, next August 11, 2022.
As a result of the reverse share split, there will be approx. 28.4 million shares of common shares issued and outstanding. After the split, the common shares will continue to trade under the symbol “MNMD” on Nasdaq but will be assigned a new CUSIP number.
The listed warrants will also be modified to reflect the split following the terms of their indentures or certificates. All restricted, performance and deferred outstanding share units prior to the new distribution will be modified to reflect it, in accordance with the terms of their respective plans as well.
Computershare Investor Services Inc. will act as the transfer agent for the reverse share split. Investors owning shares through a bank, broker, or another nominee will see their positions automatically adjusted reflecting the split, not being required to take further action; while those holding physical share certificates, will be sent a letter of transmittal with instructions for exchanging their certificates for share certificates or direct registration advice involving the post-split number of shares.
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