Business Context and Reporting Period
Company: Inmed Pharmaceuticals Inc. (INM)
Filing Type: Form 8-K (Current Report)
Date of Report: September 16, 2026
Reporting Period: Event-based report regarding Nasdaq listing compliance status.
Key Financial Metrics
- Shareholders' Equity: $1,075,007 (as reported in the Form 10-K for the fiscal year ended June 30, 2026).
- Nasdaq Minimum Equity Requirement: $2,500,000.
- Expected Gross Proceeds from Merger: Approximately $490.0 million (includes $50.0 million previously received by Mentari Therapeutics, Inc. via convertible notes).
- Stock Price Movement: Increased approximately $0.68 (~99.8%) as of September 18, 2026, compared to the price prior to the Merger Agreement announcement.
Material Changes and Causes
The Company received a notice from Nasdaq on September 16, 2026, stating it is not in compliance with Listing Rule 5550(b)(1) due to shareholders' equity falling below the $2.5 million threshold. The decline in equity is attributed to:
- Transaction-related expenses accrued for the Merger Agreement with Mentari Therapeutics, Inc. (dated May 19, 2026).
- Costs associated with the wind-down of the wholly owned subsidiary, BayMedica, LLC.
- Increased general and administrative expenses.
- Impairment charges related to intangible assets.
- Continued operating losses.
Outlook, Management Commentary, and Risks
Compliance Plan and Timeline: The Company intends to submit a compliance plan to Nasdaq by November 2, 2026 (45 calendar days from the notice). If accepted, the Company may be granted up to 180 calendar days (until March 15, 2027) to regain compliance. Management expects the closing of the Merger with Mentari will restore compliance with the minimum shareholders' equity requirement.
Merger Status: The Merger is expected to close in the fourth quarter of 2026, subject to shareholder approval and other conditions. The Form S-4 Registration Statement was filed on July 2, 2026, and amended on September 9, 2026.
Risks and Contingencies:
- There is no assurance that the compliance plan will be accepted by Nasdaq or that the Company will regain compliance within the required timeframe.
- Failure to regain compliance could result in delisting, which may adversely affect share liquidity, trading price, and the ability to obtain financing.
- There is uncertainty regarding whether the Merger will close on the expected timeline or at all.
- Forward-looking statements regarding the $490 million proceeds and compliance restoration are subject to significant risks and uncertainties.
Investor Verification Checklist
- Verify the status of the Form S-4 Registration Statement and the definitive proxy statement/prospectus for the Merger with Mentari Therapeutics.
- Monitor the submission and acceptance of the Company's compliance plan by Nasdaq by the November 2, 2026 deadline.
- Confirm the closing timeline of the Merger and the actual receipt of the expected $490 million in gross proceeds.
- Review the Company's most recent Form 10-K for a complete discussion of risk factors regarding the stand-alone business.
- Track the Company's ability to maintain other Nasdaq listing requirements while addressing the equity deficiency.