Why Did Clearmind Medicine Shares Plunge 29% After Hours?

Clearmind Medicine Inc. (NASDAQ:CMND) shares fell 29.92% in after-hours trading on Wednesday, dropping to $0.0801.

Check out the current price of CMND stock here.

The stock of the clinical-stage company closed on Wednesday at $0.11, down 6.08%, according to Benzinga Pro data.

Reverse Split Targets Nasdaq Minimum Bid Price Rule

Clearmind Medicine announced on Wednesday that it will implement a 1-for-40 reverse stock split, effective Dec. 15.

The company stated the reverse split is intended to help it regain compliance with the Nasdaq minimum bid price requirement.

Share Structure Adjustments

According to the company's press release, the reverse split will reduce its outstanding common shares from 59.99 million to 1.50 million.

The company’s authorized share capital will remain unchanged at unlimited.

The Vancouver-based biotech also noted that no fractional shares will be issued, with all fractional shares rounded up to the nearest whole share.

Board Approval, Warrant Adjustments

Clearmind’s board of directors approved the reverse split on Nov. 12, in accordance with the company’s articles of association.

The biotech stated that a proportionate adjustment will be made to the per-share exercise price and to the number of shares issuable upon exercise of all outstanding options and warrants.

Trading Metrics

Clearmind Medicine has a market capitalization of $6.86 million and an annual trading range of $0.10 to $2.18.

The stock has declined 91.41% over the past year.

Benzinga's Edge Stock Rankings indicates CMND stock has a negative price trend across all time frames. Monitor the performance of other companies in this segment.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.