Psychemedics Corporation (PMD)

• Filing date: 03 Sep 2024
• Price at time of writing: $2.275
• Reverse split ratio: 4,000 – 6,000 (TBD at AGM)
• Cash out price: $2.35
• Maximum profit: $299.93 – $449.93 (depending on split ratio chosen at AGM)
• Expiration date: TBD – subject to AGM
• Press Release: Link
• Filing: Link

Psychemedics Corporation have announced their intention to conduct a reverse stock split at a ratio between 1-for-4000 and 1-for-6000 (to be determined at upcoming AGM). Holders of fractional shares after the split will have their holdings cashed out at $2.35 per share. Assuming the lowest 1-for-4000 ratio is selected, for example, a holder of 3999 or less shares at the reverse split date can therefore expect to be cashed out at $2.35 (market price at the time of writing is $2.275) per share, provided the transaction goes ahead as indicated in the press release and SEC filing.

The plan is subject to approval at the AGM and expected to complete in the fall.

Psychemedics Corporation is conducting this transaction to reduce the number of small shareholders on the register prior to delisting from the Nasdaq.

Investors are reminded to conduct their own due diligence and of the usual risks surrounding odd lot arbitrage opportunities, such as changes to proposed corporate actions if they are no longer deemed to be beneficial. In particular, the proposed transaction would apply directly to record holders of the company’s common stock – beneficial owners whose shares are held in “street name” should contact their broker for information on how the transaction will affect shares held for their account.