InMed receives Nasdaq notice on minimum shareholders' equity

InMed Pharmaceuticals Inc. (Nasdaq: INM) received a letter from the Listing Qualifications Department of The Nasdaq Stock Market LLC saying its shareholders' equity was below the minimum for continued listing on The Nasdaq Capital Market. The company disclosed the notice on September 18, 2026. According to the company, shareholders' equity of $1,075,007, as reported in its Annual Report on Form 10-K for the fiscal year ended June 30, 2026, was below the $2,500,000 required under Nasdaq Listing Rule 5550(b)(1).

The deficiency and the plan window

InMed says the decline in equity is largely due to transaction-related expenses accrued for its merger with Mentari Therapeutics, Inc., which is governed by an Agreement and Plan of Merger and Reorganization dated May 19, 2026, as amended. The company also cites the cost of winding down its wholly owned subsidiary, BayMedica, LLC, higher general and administrative expenses, impairment charges on intangible assets and continued operating losses.

Nasdaq gave the company 45 calendar days to submit a plan to regain compliance with the minimum shareholders' equity standard. If the plan is accepted, Nasdaq may grant an extension of up to 180 calendar days from the date of the letter. If the company does not show compliance in that period, Nasdaq may notify it that its common shares are subject to delisting.

Why the company expects to regain compliance

After the merger closes, and because of a pre-closing financing for Mentari, the combined company is expected to receive aggregate gross proceeds of approximately $490.0 million. That total includes $50.0 million that Mentari has already received from convertible notes, plus accrued interest on those notes. InMed says it expects the closing to bring it back into compliance with the equity requirement.

The closing share price on September 18, 2026 was up approximately $0.68, or about 99.8%, from the closing price just before the merger agreement was first announced. The transactions are expected to close in the fourth quarter of 2026, subject to conditions including approval by InMed shareholders.

If the plan is not accepted

InMed could appeal a delisting determination to a Nasdaq Hearings Panel. The company expects its securities would remain listed and tradable on Nasdaq at least while an appeal is pending. The release says there can be no assurance that an appeal would succeed, or that the company could meet the terms of any extension.

The release also lists risks, including whether the company can prepare a plan that Nasdaq accepts, whether the merger closes on the expected timeline or at all, and whether the expected Mentari financing proceeds are received. It also lists the risk that a delisting would affect share liquidity and the company's ability to obtain financing.

The company

InMed is a pharmaceutical company developing small molecule drug candidates that target the CB1 and CB2 receptors. Its pipeline has three programs, in Alzheimer's disease, ocular disease and dermatological disease. The company's business section says that on March 4, 2026, its board ratified the decision to wind down BayMedica, the only revenue-generating commercial operation of InMed. The Alzheimer's candidate, INM-901, is in preclinical development, and a pre-IND meeting with the FDA was scheduled for the third quarter of calendar 2026.

The financial record

The 10-K shows revenue of $4.9 million for the fiscal year ended June 30, 2025. That year's net loss was $8.2 million, and cash used in operations was $8.1 million. For the fiscal year ended June 30, 2026, the net loss was $12.6 million, cash used in operations was $8.6 million and research and development expense was $3.0 million, compared with $2.8 million a year earlier. Cash and cash equivalents were $2.2 million at June 30, 2026, down from $10.7 million a year earlier. Short-term investments were $39,670, compared with $43,384 a year earlier.

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