Anebulo Pharmaceuticals approves reverse stock split for going-private transaction

Anebulo Pharmaceuticals' board approves reverse stock split ahead of going-private transaction, adding 75% to its stock price. The move is part of the company's plan to delist from Nasdaq and go private. Anebulo's independent directors approved the reverse stock split, which will likely affect the company's stock listing.

Title: Anebulo Pharmaceuticals Approves Reverse Stock Split Ahead of Going-Private Transaction

Austin, Texas – Anebulo Pharmaceuticals, Inc. (NASDAQ: ANEB), a clinical-stage pharmaceutical company specializing in solutions for cannabis-induced toxic effects, has taken a significant step towards delisting from Nasdaq. The company's board of directors has approved a reverse stock split as part of a going-private transaction. This move is expected to significantly impact the company's stock listing and potentially boost its stock price by 75%.

The reverse stock split, which will be implemented at a ratio between 1-for-2,500 and 1-for-7,500, aims to reduce the number of shareholders, thereby allowing the company to terminate its registration as a Securities and Exchange Commission (SEC) reporting company. Shareholders owning fewer than the minimum threshold of shares (between 2,500 and 7,500 depending on the final ratio) will receive $3.50 in cash per pre-split share and will no longer remain stockholders. This price represents a 91% premium over the company’s July 22 closing price [1].

Anebulo Pharmaceuticals has cited the high costs associated with being a public reporting company as a primary reason for this move. The company believes that reducing these costs will allow it to focus more on developing its product candidates, lowering operating costs, and maximizing stockholder value [2].

The reverse stock split is subject to stockholder approval and other conditions. The Board may abandon the proposed transaction if it determines it is no longer in the best interests of the company or its stockholders. Anebulo has filed preliminary proxy materials with the SEC and intends to file definitive materials ahead of a special stockholder meeting where the proposal will be voted on [1].

In addition to the reverse stock split, Anebulo Pharmaceuticals has reported its third-quarter financial results for fiscal year 2025, revealing a net loss of $1.7 million, or $0.04 per share. The company's expenses for the quarter included $600,000 for research and development and $1.2 million for general and administrative costs. Despite the financial challenges, the company has maintained a strategic focus on advancing its clinical pipeline, particularly intravenous selonabant for pediatric patients with cannabis-induced Central Nervous System depression [1].

The recent developments reflect Anebulo Pharmaceuticals’ current position and ongoing initiatives. Benchmark analysts have adjusted their outlook on Anebulo Pharmaceuticals, reducing the stock’s price target from $8.00 to $3.00. Despite this adjustment, Benchmark maintained a Speculative Buy rating for the stock [1].

References:
[1] https://za.investing.com/news/company-news/anebulo-pharmaceuticals-plans-to-go-private-with-reverse-stock-split-93CH-3800652
[2] https://www.businesswire.com/news/home/20250721219989/en/Anebulo-Pharmaceuticals-Approves-Plan-to-Terminate-Registration-of-Its-Common-Stock