Since late last year, we’ve been mentioning Mydecine’s increasingly urgent need to raise some capital. With a pipeline full of very promising potential, yet dwindling cash reserves putting the future of their upcoming trials at risk, many observers have been waiting for this situation to get resolved.
In December, the company raised $5.5 million in capital and they recently closed the first tranche of a new capital raise (an extremely modest $333,333.35).
Yet with conditions in the psychedelic medicine market not exactly conducive to raising funds, Mydecine’s stock has taken a beating, outpacing the declines of their shroom stock companions (MYCO closed at $0.045 yesterday).
Which is likely why the firm announced an upcoming reverse stock-split. It will be a 1-for-50 reverse stock split, reducing the number of shares and increasing the share price accordingly (for a summary of reverse splits see this article).
Reverse splits are generally a sign of firms wanting to increase their share price to uplist to a senior exchange, or if the company’s stock has been struggling and it hopes to change the public perception.
Splits can help psychologically, but don’t change the underlying fundamentals. Still, Mydecine’s upcoming trials for smoking cessation (in collaboration with Johns Hopkins) are important and could potentially help a lot of people — so let’s hope this move has its desired effect and gives them a bit of breathing room.
Stay tuned.
Mydecine Announces Reverse Stock-Split
NEWS PROVIDED BY
Mydecine Innovations Group Inc.
DENVER, April 13, 2022 /CNW/ – Mydecine Innovations Group Inc. (NEO: MYCO) (OTC: MYCOF) (FSE: 0NFA) (“Mydecine” or the “Company“), today announces its Board of Directors has voted in favour of completing a reverse stock-split, thereby consolidating all of the Company’s issued and outstanding common shares (“Common Shares“) on the basis of one (1) post-consolidation Common Share for every fifty (50) pre-consolidation Common Shares (the “Consolidation“).
The Consolidation is expected to result in the number of issued and outstanding Common Shares being reduced from 268,515,954 pre-Consolidation Common Shares to approximately 5,370,319 post-Consolidation Common Shares. Shareholders of the Company, with or without a physical share certificate, do not need to take any action with respect to the Consolidation. The exercise or conversion price of warrants, convertible debentures, compensation options and options, and the number of Common Shares issuable thereunder will also be proportionately adjusted upon the completion of the Consolidation.
If, as a result of the Consolidation, a shareholder would otherwise be entitled to a fraction of a Common Share in respect of the total aggregate number of pre-Consolidation Common Shares held by such shareholder, no such fractional Common Share will be awarded. The aggregate number of Common Shares that such shareholder is entitled to will, if the fraction is less than one half of one share, be rounded down to the next closest whole number of Common Shares, and if the fraction is at least one half of one share, be rounded up to one whole Common Share.
The Consolidation is subject to the receipt of all required regulatory approvals, including the approval of the NEO Exchange. The effective date for the Consolidation and announcement of the new CUSIP and ISIN numbers is expected to be completed within the next week, with an expected effective date of April 20, 2022
, with the post-Consolidation Common Shares trading on the NEO exchange as of April 21, 2022. The Company anticipates that its current trading symbol will remain unchanged.
Mydecine Innovations Group™ (NEO:MYCO) (OTC:MYCOF) (FSE:0NFA) is a biotechnology company developing innovative first- and-second-generation novel therapeutics for the treatment of mental health and addiction using world-class technology and drug development infrastructure. Mydecine was founded in 2020 to address a significant unmet need and lack of innovation in the mental health and therapeutic treatment environments. Our global team is dedicated to efficiently developing new therapeutics to treat PTSD, depression, anxiety, addiction and other mental health disorders. The Mydecine business model combines clinical trials and data outcome, technology, and scientific and regulatory expertise with a focus on psychedelic therapy, as well as other novel, non-psychedelic molecules with therapeutic potential. By collaborating with some of the world’s foremost authorities, Mydecine aims to responsibly fast-track the development of new medicines to provide patients suffering from mental health disorders with safe and more effective treatment options. Mydecine Innovations Group is headquartered in Denver, Colorado, USA, with international offices in Leiden, Netherlands.
Learn more at: https://www.mydecine.com and follow us on Twitter, LinkedIn, YouTube and Instagram.
For further information about Mydecine Innovations Group, Inc., please visit the Company’s profile on SEDAR at www.sedar.com or visit the Company’s website at www.mydecine.com.
