Clearmind Medicine Inc faces compliance issues amid stock split announcement

Clearmind Medicine Inc. experienced a significant price drop of 37.88%, crossing below its 5-day SMA. This decline comes as the company announced a 1-for-40 reverse stock split to comply with Nasdaq's Minimum Bid Price Rule, following a compliance notice due to its share price falling below $1 for 30 consecutive days.

The reverse stock split, effective December 15, 2025, aims to reduce outstanding shares and increase the share price to maintain listing eligibility. The board approved this measure in response to compliance pressures, reflecting the company's proactive approach to stabilize its shareholder structure and bolster investor confidence. However, the stock's recent performance indicates ongoing challenges, as it closed at $0.114 before dropping further in premarket trading.

This situation raises concerns about investor confidence and the company's ability to regain compliance with Nasdaq's listing requirements. If Clearmind fails to raise its share price above $1 within the compliance period, it may face delisting risks, which could have long-term implications for its financing capabilities and market reputation.