InMed Pharmaceuticals Gets Nasdaq Notice Over $1.08M Shareholders' Equity

What happened

InMed Pharmaceuticals Inc. (Nasdaq: INM) disclosed in a Form 8-K filed September 18, 2026 that on September 16, 2026 it received a letter from the Listing Qualifications Department of The Nasdaq Stock Market LLC stating that the company is not in compliance with Nasdaq Listing Rule 5550(b)(1). That rule requires companies listed on the Nasdaq Capital Market to maintain at least $2,500,000 in shareholders' equity for continued listing.

In its Annual Report on Form 10-K for the fiscal year ended June 30, 2026, the company reported shareholders' equity of $1,075,007, according to the filing. That figure is roughly 43% of the required minimum.

The filing states the decline in shareholders' equity is attributable largely to transaction-related expenses accrued in connection with a previously announced Agreement and Plan of Merger and Reorganization dated May 19, 2026 with Mentari Therapeutics, Inc. The company also attributes the decline to costs from winding down its wholly owned subsidiary BayMedica, LLC, increased general and administrative expenses, impairment charges on intangible assets, and continued operating losses.

InMed said the notice has no immediate effect on the listing of its common shares, which continue to trade on the Nasdaq Capital Market under the symbol "INM."

The compliance timeline

Under the notice, InMed has 45 calendar days, until November 2, 2026, to submit a plan to regain compliance. If Nasdaq accepts that plan, the company could be granted up to 180 calendar days from September 16, 2026, or until March 15, 2027, to demonstrate compliance.

The company said it intends to submit a compliance plan by the Nasdaq deadline and to take "all reasonable measures available" to regain compliance, including continuing to pursue the merger with Mentari. The filing states InMed expects that closing the merger will result in the company regaining compliance with the minimum shareholders' equity requirement, because the combined company is expected to receive aggregate gross proceeds of approximately $490.0 million from Mentari's previously disclosed pre-closing financing. That figure includes $50.0 million of proceeds Mentari previously received from issuing convertible notes, plus accrued interest on those notes.

The filing states the merger is expected to close in the fourth quarter of 2026, subject to shareholder approval and other conditions.

The filing adds that if Nasdaq does not accept the plan, or accepts it but the company fails to regain compliance within the plan period, InMed would have the right to a hearing before an independent Nasdaq panel. The company states there can be no assurance that its plan will be accepted, that it will regain compliance, or that any appeal would succeed.

What this means

Nasdaq Listing Rule 5550(b)(1) is one of several continued-listing standards. It sets a floor for shareholders' equity — the accounting value of assets minus liabilities — that a company on the Nasdaq Capital Market must stay above to keep its listing. Shareholders' equity can fall for many reasons: losses, write-downs of assets, or one-off expenses. In InMed's case, the filing points to merger transaction costs, the wind-down of subsidiary BayMedica, impairment charges, and continuing operating losses.

A notice of non-compliance is not a delisting. It starts a process. A company gets a set number of days to send Nasdaq a written plan for how it will get back above the threshold, and then, if that plan is accepted, a longer window to actually do it. Three numbers matter here: $2,500,000 — the minimum equity — versus $1,075,007 reported at fiscal year-end June 30, 2026, and the November 2, 2026 deadline to file a plan.

For a small, thinly covered company like InMed, which is a pharmaceutical company, the practical risk described in the filing is that a delisting would hurt share liquidity and the ability to raise money. The filing does not say the company is being delisted; it says the notice has no immediate impact on trading. Investors who search for "INM Nasdaq notice" are seeing the first step of a compliance process, not its outcome.

The company's disclosed remedy is corporate rather than operational: closing a merger that would bring in new money. That is why the equity shortfall and the merger are described in the same filing. If the merger closes as described, the combined company's equity would be expected to rise above the threshold — though the filing explicitly notes there can be no assurance the proceeds will be received or that compliance will follow.

It is worth noting what this filing does not say. It does not explain why the company's share price moved on the day of the filing; the filing only states that the closing price on September 18, 2026 was approximately $0.68, or about 99.8%, higher than the close immediately before the merger was first announced. Price data accompanying this report show INM closed at $1.36 on September 18, down $0.03, or 2.16%, from the prior close of $1.39.

About the company

InMed Pharmaceuticals Inc. is a pharmaceutical company incorporated in British Columbia, Canada, with its principal executive offices listed in Vancouver. Its common shares, no par value, trade on the Nasdaq Stock Market under the symbol INM. The company's quarterly and annual disclosures are filed with the U.S. Securities and Exchange Commission and with Canadian securities regulators on SEDAR+.