Shares of Anebulo Pharmaceuticals (NASDAQ:ANEB) jumped 80% following the company’s announcement that its Board of Directors has approved a plan to take the clinical-stage pharmaceutical firm private through a reverse stock split, which would end its status as a public SEC reporting company.
The company intends to execute a reverse stock split at a ratio ranging from 1-for-2,500 up to 1-for-7,500, with the exact figure to be finalized by the Board. After the split, shareholders owning fewer than the minimum required shares will receive $3.50 in cash per pre-split share, representing a 91% premium over the stock’s closing price on July 22, 2025.
Anebulo, focused on developing treatments for acute cannabis-induced toxic effects, explained that the “burdensome” expenses tied to maintaining public company status drove the decision to go private. The company added that this move supports its goal to advance product candidates, cut operating costs, and “return the maximum value to its stockholders.”
The transaction, which was recommended by a Special Committee of independent directors, still requires approval from shareholders and fulfillment of other conditions. Shareholders with holdings above the minimum threshold (between 2,500 and 7,500 shares) will receive one post-split share for every set number of pre-split shares they hold, plus cash for any fractional shares.
The Board reserves the right to cancel the proposed transaction if it determines it is no longer in the best interest of the company or its shareholders.
Anebulo Pharmaceuticals stock price
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