InMed seeks appeal over Nasdaq delisting notice

VANCOUVER - InMed Pharmaceuticals Inc. (NASDAQ: INM), a biopharmaceutical company, has initiated an appeal process with the Nasdaq Listing Qualifications Panel to address its non-compliance with the stock market's minimum bid price requirement. The company announced today that it has requested a hearing, scheduled for October 31, 2024, to present its plan to regain and maintain compliance with Nasdaq's minimum bid price rule.

The rule in question, Nasdaq Listing Rule 5550(a)(2), requires the company's stock to maintain a minimum bid price of $1.00. InMed was previously given an additional 180-day period, ending September 16, 2024, to meet this requirement. However, following the compliance period, Nasdaq staff issued a delisting notice to InMed on September 17, 2024, indicating the company's failure to meet the minimum bid price.

The appeal has temporarily stayed any delisting actions pending a final decision by the Panel, which has the authority to grant InMed up to another 180 days to comply. The Panel may also impose stricter criteria for InMed's continued listing or proceed with the suspension or delisting of the company's common shares.

InMed specializes in developing proprietary small molecule drug candidates, particularly targeting CB1/CB2 receptors, with a pipeline that includes treatments for Alzheimer's, ocular, and dermatological conditions. The company's subsidiary, BayMedica, is involved in the manufacturing and development of rare cannabinoid-based products.

Despite the appeal process, there is no assurance that the Panel will extend the compliance period or rule in favor of InMed. The company's future on the Nasdaq Capital Market remains uncertain as it navigates through the appeal and potential outcomes, which could include the suspension of its securities and the filing of a Form 25-NSE.

This news is based on a press release statement from InMed Pharmaceuticals and does not include speculative or promotional content. The company's forward-looking statements involve risks and uncertainties, and actual results may differ materially. Investors are advised to review InMed's filings with the Securities and Exchange Commission for a comprehensive understanding of the risks faced by the company.

In other recent news, InMed Pharmaceuticals Inc. has made significant strides in its Alzheimer's disease program with the development of its proprietary drug candidate, INM-901. The drug, which has shown promise in preclinical studies, can be effectively administered orally, achieving drug concentration levels in the brain comparable to those from intraperitoneal injection. This oral formulation could offer considerable benefits over current intravenous antibody therapies for Alzheimer's, such as reduced treatment delivery costs and improved patient accessibility.

InMed is also making progress in a long-term in vivo preclinical Alzheimer's Disease study of INM-901. This seven-month study confirmed improvements in cognitive function, memory, and locomotor activity. Notably, the INM-901-treated Alzheimer's groups demonstrated statistically significant improvements in certain behavior criteria compared to the placebo-treated Alzheimer's groups.

These developments are part of the company's ongoing efforts to address diseases with unmet medical needs. Further analyses are being conducted to define the mechanisms of action for INM-901 and its potential role in Alzheimer's treatment. As a part of this process, InMed is advancing the chemistry, manufacturing, and controls for both the drug substance and the drug product formulation.

InvestingPro Insights

In light of InMed Pharmaceuticals Inc.'s (NASDAQ: INM) ongoing efforts to regain compliance with Nasdaq's listing requirements, a closer look at the company's financial health and stock performance offers additional context for investors. According to InvestingPro data, InMed has a market capitalization of $2.42 million and has experienced substantial revenue growth over the last twelve months as of Q3 2024, with a 140.49% increase. Despite this impressive growth, the company is facing challenges, as reflected in its significant operating income loss of $6.64 million and an operating income margin of -118.06% for the same period.

InvestingPro Tips suggest that InMed holds more cash than debt on its balance sheet, which could provide some financial flexibility in its efforts to meet Nasdaq's requirements. However, analysts do not anticipate the company will be profitable this year, and the stock has fared poorly over the last month, with a 36.67% decline in price total return. These factors contribute to a complex picture for investors considering the company's potential for recovery and growth.

For investors seeking a deeper dive into InMed's financials and stock performance, InvestingPro offers additional tips. Currently, there are 10 more InvestingPro Tips available for InMed at https://www.investing.com/pro/INM, which could provide further insights into the company's valuation, cash flow yield, and price volatility.

As InMed prepares for its appeal hearing with the Nasdaq Listing Qualifications Panel, these InvestingPro Insights can help investors understand the risks and opportunities associated with the company's stock during this period of uncertainty.

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