This Psychedelics Company Is Undertaking A 1:50 Reverse Stock Split To Enter NASDAQ

The psychedelics landscape changes quickly. Whether large or small, every biotech company is looking for ways to further advance their research and product & services commercialization. 

Whether forward or back, stock splits are not intended to, nor should they, change the actual value of a company. Yet there are a few reasons why firms decide to “cut the pie” into different sized slices. One, for instance, is complying with listing requirements. 

The time seems to have come for Silo Pharma Inc. SILO, a developmental stage firm, to follow MindMed’s MNMD steps and effect a 1-for-50 reverse split of its common stock in order to prepare for the listing of its securities on the NASDAQ Capital Market. 

The new split became effective as of market opening on September 15, with common stocks trading on the OTC market under the temporary “SILOD” symbol. That ticker will remain active for 20 business days or until the company is listed on Nasdaq, at which point the trading symbol will go back to the original “SILO.”

Silo filed an application to list its common stock on Nasdaq considering it satisfies the financial and liquidity listing requirements other than the minimum share price requisite, which the company aims to reach with its new reverse stock split.

The plan foresees that every 50 shares of issued and outstanding common stock will be exchanged for one share of common stock, with any fractional shares being rounded up to the next higher whole share. 

Following the reverse stock split, the company will have approx. 1,987,906 shares of common stock issued and outstanding.