ANEB News & Events

Anebulo Pharmaceuticals announced that the company's board of directors has approved the voluntary delisting of the company's common stock from the Nasdaq Capital Market and the subsequent voluntary deregistration of its common stock with the SEC. Simultaneously with this announcement, Anebulo notified Nasdaq today of its intention to voluntarily delist its shares of common stock from Nasdaq. The company is in compliance with applicable Nasdaq listing requirements, but the board believes that the cost of being an SEC reporting company outweighs the benefits. As the company continues with its efforts to maximize value from its lead product candidate, the board has determined that the burdens associated with operating as a registered public company listed on Nasdaq outweigh any advantages to the company and the holders of its common stock.

Anebulo Pharmaceuticals announced that the board of directors has decided to commence a cash tender offer as part of its plan to "go private" in lieu of the previously announced reverse stock split at a ratio of not less than 1-for-2,500 and not greater than 1-for-7,500. Voluntary self tender consists of acquiring up to 300,000 shares at $3.50 price per share While the board of directors believed that the reverse stock split transaction was in the best interest of the company and its stockholders at the time of its proposal, upon review and careful consideration, further discussions with management and its advisors and other relevant factors, the board of directors has determined that the costs of the proposed reverse stock split transaction now outweigh the benefits to the company and its stockholders. The primary cause is the increased number of shares that are now held through accounts with fewer than 2,500 shares, mostly from certain holders who upon announcement of the proposed reverse stock split began acquiring shares through multiple accounts with less than 2,500 shares or splitting their existing holdings, simply in an attempt to receive multiple fractional share payments. This activity resulted in a significant increase in the expected cost of the proposed transaction. Therefore, the board of directors has decided that the increased cost now outweighs the anticipated benefit, and it is in the best interest of the company and its stockholders to abandon the reverse stock split and to commence a voluntary self-tender offer to purchase 300,000 shares at $3.50 in lieu of the reverse split proposal. The tender offer will aid the company in maintaining its number of stockholders at below 300, which is necessary for its "go private" transaction. The board will continue to monitor the cost of a reverse stock split or alternative transaction versus the benefits and may at some point in the future and on such terms as will be decided to be beneficial at that time pursue another transaction if and when deemed to be in the best interest of the company and its stockholders.

"We have made significant progress towards our goal of providing the first emergency antidote for acute cannabis-induced toxicity in children," commented Richie Cunningham, Chief Executive Officer of Anebulo. "Anebulo previously evaluated selonabant as an oral treatment in a successful Phase 2 clinical trial, demonstrating potential for blocking and reversing the negative effects of acute cannabinoid intoxication (ACI) in healthy adults challenged with oral THC. The Company has since prioritized the advancement of a selonabant IV formulation as a potential treatment for pediatric patients with acute cannabis-induced toxicity, which it believes is a more serious condition that offers the potential for a faster timeline to approval relative to the adult oral product. Acute cannabis exposure in children can result in serious and potentially life-threatening consequences, including CNS depression, respiratory depression, coma, and in rare cases death. Cannabis toxic effects in children can be much more serious than in adults, and there is a much greater risk of hospitalization and admission to intensive care. In addition to the continuing collaborative support from NIDA, our interactions with the Food and Drug Administration to date have confirmed our belief that there is a significant and growing unmet need for a treatment for children exposed to cannabis toxicity. FDA has suggested a close collaboration with Anebulo to facilitate the development of selonabant for this important pediatric condition. If approved, we believe selonabant has the potential to offer a much-needed targeted therapy for rapidly reversing the serious and life-threatening consequences of acute cannabis-induced toxicity in children."

Anebulo Pharmaceuticals announced the first subjects dosed in its Phase 1 single ascending dose study of intravenous selonabant in healthy young adults. The study is supported by a collaborative grant from the National Institute on Drug Abuse.