InMed Pharmaceuticals Inc. (Nasdaq: INM) announced on September 16, 2026, that it has received a letter from the Listing Qualifications Department of The Nasdaq Stock Market LLC. The notification states that the company is not in compliance with Nasdaq Listing Rule 5550(b)(1), which requires a minimum of $2,500,000 in shareholders' equity for continued listing on The Nasdaq Capital Market.
The company reported shareholders' equity of $1,075,007 in its Annual Report on Form 10-K for the fiscal year ended June 30, 2026. The filing attributes the decline in equity to transaction-related expenses accrued in connection with the Agreement and Plan of Merger and Reorganization dated May 19, 2026, with Mentari Therapeutics, Inc. Other factors contributing to the decline include costs associated with the wind-down of its wholly owned subsidiary, BayMedica, LLC, increased general and administrative expenses, impairment charges related to intangible assets, and continued operating losses.
InMed expects that the closing of the Merger, combined with proceeds from a previously disclosed Mentari pre-closing financing, will result in the combined company receiving aggregate gross proceeds of approximately $490.0 million. The company believes this transaction will allow it to regain compliance with the minimum shareholders' equity requirement. The transactions are expected to close in the fourth quarter of 2026, subject to shareholder approval.
As a result of the notice, Nasdaq has granted the company 45 calendar days to submit a plan to regain compliance. If the plan is accepted, the company may be granted an extension of up to 180 calendar days from September 16, 2026, to demonstrate compliance. The notice does not have an immediate impact on the listing of the company's common shares, which will continue to trade under the symbol "INM".
