Shares of Clearmind Medicine Inc. (NASDAQ:CMND) are falling Friday after the clinical-stage biotech company shared a key update about its stock listing.
What To Know: Clearmind said it received a Nasdaq delisting notification last week. Nasdaq requires companies to maintain a minimum of $2.5 million in stockholders’ equity. However, on a Form 6-K that Clearmind filed in September, it reported a stockholders’ equity of $1,065,668.
Shares were down almost 10% following the news, according to Benzinga Pro.
The notice has no immediate effect on Clearmind’s listing. The company has until Dec. 18 to submit a plan to regain compliance. If accepted, Nasdaq can grant an extension of up to 180 calendar days to evidence compliance.
Clearmind previously announced that it has entered into securities purchase agreements with investors where it will issue and sell convertible promissory notes in the aggregate principal amount of up to $10,000,000.
In the final two days of October, an aggregate of $1,045,062 of outstanding amounts due under the notes were converted into 885,000 of Clearmind’s common shares. It expects to demonstrate compliance with the Nasdaq stockholders’ equity requirement if additional portions of the notes are converted.
CMND Analysis: Clearmind’s stock is trading approximately 30.7% below its 50-day moving average of $0.98 and about 34.6% below its 200-day moving average of $1.04. Such positioning suggests a persistent downtrend, with the stock struggling to regain momentum. The relative strength index (RSI) currently sits at 28.77, signaling that the stock is in oversold territory, which could indicate a potential reversal if buying interest returns.
With no established support levels due to the recent price action, the 50-day moving average may serve as a crucial psychological barrier for traders. On the upside, the 52-week high of $2.18 remains a significant resistance level, reflecting the distance the stock must cover to regain previous highs. The absence of calculated support levels further emphasizes the uncertainty surrounding the stock’s near-term price movements.
CMND Price Action: Clearmind shares were down 6.03% at $0.69 at the time of publication on Friday. The stock is trading near its 52-week low of $0.60.
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