Shareholders' equity, the number you get when you subtract a company's debts from the value of everything it owns, has a minimum floor on the Nasdaq exchange. InMed Pharmaceuticals Inc. (Nasdaq: INM) slipped below it. Nasdaq's Listing Qualifications Department told the Vancouver-based drug developer on September 18, 2026 that its equity of $1,075,007, reported in its annual filing for the fiscal year ended June 30, 2026, fell short of the $2,500,000 minimum set by Nasdaq Listing Rule 5550(b)(1).
What pushed equity below the line
The company pointed to costs tied to its planned merger with Mentari Therapeutics, Inc. as the main culprit. Transaction-related expenses from that agreement, dated May 19, 2026, landed on InMed's books before the deal closed. Additional pressures came from the wind-down of its wholly owned subsidiary, BayMedica, LLC, along with higher general and administrative costs, impairment charges on intangible assets, and continuing operating losses.
The 45-day window
Nasdaq gave InMed 45 calendar days to submit a compliance plan. If Nasdaq accepts the plan, it may grant an extension of up to 180 calendar days from the date of the letter to actually demonstrate compliance with the equity minimum.
InMed expects the Mentari merger to resolve the issue. The combined company is expected to receive aggregate gross proceeds of approximately $490.0 million, a figure that includes $50.0 million Mentari previously raised through convertible notes and the accrued interest on those notes. The merger is expected to close in the fourth quarter of 2026, subject to shareholder approval, among other conditions.
If InMed cannot show compliance within Nasdaq's required window, Nasdaq may issue a delisting notice. The company could appeal to a Nasdaq Hearings Panel, and its shares would be expected to remain tradeable at least while that appeal runs. InMed acknowledged in its filing that there is no guarantee any appeal would succeed.
The company said its closing share price on September 18, 2026 sat approximately $0.68, or about 99.8%, above where it traded just before the Mentari merger was first announced. InMed's pipeline covers small molecule drug candidates targeting the CB1/CB2 receptors for conditions the company describes as having high unmet medical needs, including Alzheimer's disease, ocular disorders, and dermatological indications.