Bright Minds Biosciences Inc. (NASDAQ:DRUG) is going for a consolidation of its common shares on a five-to-one basis, a plan approved by the company's board of directors in June.

The new arrangement is expected to increase the next-generation psychedelics developer's attractiveness to investors as well as provide a path to regain compliance with NASDAQ's minimum bid price requirement, a situation Bright Minds has faced since Jan. 27.

The company is not the only one to have been unable to achieve the market's price requirement in the past months. Others include Reunion Neuroscience -about to go private- and, more recently, Israeli company Clearmind Medicine.

As reported, Bright Minds currently has 18,860,359 common shares issued and outstanding and, following the consolidation completion, will have approximately 3,772,071 total common shares, with exercise price and number of common shares issuable upon outstanding options and warrants to be proportionally adjusted.

No fractional shares will be issued upon the consolidation, so entitled shareholders will receive a rounded (up or down, as corresponds) number of common shares.

Post-consolidation shares are expected to begin trading on both Nasdaq and SEC on July 14 under the same company name and trading symbol, with CUSIP number 10919W405 and new ISIN number CA10919W4056.

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