Mydecine Announces Reverse Stock-Split

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 alcohol addiction (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.

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…