In a classic Canadian small cap move, Mind Medicine (NEO: MMED) last night announced that it’s directors have approved a share consolidation. The consolidation follows an announcement in May that the company would be conducting an at-the-market financing to the tune of $100 million.
The reverse split will see the company reduce its share count on a 15 to 1 basis, resulting in an estimated 28.4 million shares outstanding on a post-consolidation basis. The figure implies the company has approximately 426 million shares outstanding currently, an increase from the 422.4 million outstanding as of March 31.
No fractional shares are to be issued with the consolidation, with such shares to be rounded off to the nearest whole number.
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The consolidation is being conducted as a means of meeting Nasdaq minimum pricing requirements, as well as to provide the company with “greater flexibility in considering and planning for future potential business needs.”
The reverse split is expected to take effect after the close of markets on August 26, 2022.
Mind Medicine last traded at $0.91 on the Neo.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
