Clearmind Medicine Executes 1-for-40 Reverse Stock Split to Address Nasdaq Compliance Issues

Clearmind Medicine Inc. (CMND), a clinical-stage biotechnology firm specializing in psychedelic-derived therapeutic candidates, disclosed plans for a significant corporate restructuring. The company will implement a reverse stock split at a 1-for-40 ratio, designed to help the organization meet Nasdaq’s minimum bid price compliance standards.

Timeline and Mechanics

The board of directors approved the reverse stock split on November 12, 2025, with an implementation date set for December 15, 2025. This restructuring will compress the company’s issued and outstanding common shares from approximately 59.99 million down to 1.50 million shares. Shareholders holding fractional positions will see these automatically adjusted upward to the nearest whole share. Similarly, all exercise prices and share counts tied to existing options and warrants will undergo proportionate modifications.

Market Context and Stock Performance

CMND’s trading history over the past year has been volatile, fluctuating between $0.10 and $2.18 per share. The stock closed the previous trading session at $0.114, reflecting a 6.08% decline. Pre-market activity today showed further pressure, with the stock trading down approximately 23% at $0.08. These movements highlight the market challenges the company faces and underscore the urgency of regaining Nasdaq compliance.

Clinical Pipeline Progress

At the core of Clearmind’s development efforts sits CMND-100 (MEAI), an orally administered drug candidate currently undergoing Phase I/IIa clinical evaluation for alcohol use disorder (AUD). The multinational trial recently began patient enrollment at Hadassah Medical Centre in Jerusalem, with the initial participant now dosed. The study protocol emphasizes comprehensive assessment of safety profiles, tolerability measures, pharmacokinetic behavior, and early efficacy signals.

Preliminary results from the opening cohort demonstrated encouraging findings, prompting the Data and Safety Monitoring Board to greenlight continued patient recruitment and data collection. Beyond this lead program, the company is advancing a portfolio of psychedelic-derived compounds in preclinical stages targeting binge eating behaviors, treatment-resistant depression, and metabolic dysfunction.

The reverse stock split represents a critical juncture for Clearmind as it works to maintain market access while advancing its clinical programs toward potential regulatory milestones.