NEW YORK - Psyence Biomedical Ltd. (NASDAQ:PBM) announced Wednesday that it will implement a 1-for-6.25 share consolidation effective January 20, 2026, when the company's shares are expected to begin trading on a post-consolidated basis. The micro-cap biotech, currently trading at $0.78 and valued at just $1.46 million, has seen its shares plummet 94% over the past year according to InvestingPro data.
This marks the second consolidation for the biopharmaceutical company in less than a year, following a 1-for-7.97 consolidation implemented on May 5, 2025. Both actions were authorized by shareholders at a Special Meeting held on April 16, 2025, which approved a resolution allowing the Board to implement a consolidation at a ratio of up to 1-for-50.
Following the consolidation, Psyence's outstanding common shares will decrease from 6,388,604 to 1,022,177. The company will continue trading under the symbol "PBM" on the Nasdaq Capital Market but will have a new CUSIP number: 74449F407. Despite its price struggles, InvestingPro analysis indicates the stock is trading near its Fair Value, with a solid current ratio of 8.09 suggesting adequate liquidity for near-term obligations.
The consolidation will proportionately adjust the number of shares and exercise price of the company's outstanding warrants and other equity instruments. No fractional shares will be issued, with fractions less than one-half rounded down and fractions of at least one-half rounded up.
Shareholders holding shares in book-entry form or through brokerage accounts are not required to take any action, though beneficial holders may experience delays in the reflection of the consolidation in their accounts depending on their broker's procedures.
Continental Stock Transfer & Trust Company is serving as the exchange agent and transfer agent for the consolidation.
Psyence Biomedical specializes in developing nature-derived psychedelic-based therapeutics, focusing on psilocybin and ibogaine-based treatments for mental health disorders.
The announcement was made in a company press release.
In other recent news, Psyence Biomedical Ltd. announced significant developments in its clinical and research initiatives. The company has received approval from the Bellberry Human Research Ethics Committee for its PsyLabs™ psilocybin product to be used in a Phase IIb clinical trial. This trial, which focuses on psilocybin-assisted psychotherapy for Adjustment Disorder in cancer patients, is underway at multiple sites in Australia. Additionally, Psyence Biomedical has launched a psilocybin longevity research program in collaboration with South African researchers, marking it as the first publicly listed company to explore psilocybin's impact on aging-related biological markers.
Furthermore, Psyence Biomedical has secured a sustainable supply of high-potency iboga bark through its partner PsyLabs, which will be used in developing ibogaine-based therapies for substance use disorders. The company has also established operations in Africa, enhancing its manufacturing capabilities for ibogaine production. These initiatives underscore Psyence Biomedical's commitment to advancing its research and clinical applications in the psychedelics field.
This article was generated with the support of AI and reviewed by an editor.