Bright Minds Biosciences Inc. (CSE:DRUG | NASDAQ:DRUG) announces that it has received a letter (the “Deficiency Letter”) from the Nasdaq Stock Market LLC dated February 2, 2023, stating that following the resignation of Dr. Williamson from the Company’s board of directors and audit committee, the Company no longer complies with NASDAQ’s independent director and audit committee requirements as set forth in Listing Rule 5605.
Listing Rule 5605(b)(1) states that the Company’s board of directors must consist of a majority independent directors and Listing Rule 5605(c)(2) states that the Company’s audit committee must consist of at least three members, all of whom are independent. Following Dr. Williamson’s resignation, the Company’s board of directors consists of four directors, only two of whom are independent, and its audit committee consists of three members, only two of whom are independent.
However, in accordance with Listing Rules 5605(b)(1)(A) and 5605(c)(4), the Company has until July 10, 2023 in order to regain compliance (the “Cure Period”). The Company is currently in advanced discussions with a potential new director and anticipates regaining compliance within the Cure Period.
About Bright Minds
Bright Minds is focused on developing novel transformative treatments for neuropsychiatric disorders, epilepsy, and pain. Bright Minds has a portfolio of next-generation serotonin agonists designed to target neurocircuit abnormalities that are responsible for difficult to treat disorders such as resistant epilepsy, treatment resistant depression, PTSD, and pain. The Company leverages its world-class scientific and drug development expertise to bring forward the next generation of safe and efficacious drugs. Bright Minds’ drugs have been designed to potentially retain the powerful therapeutic aspects of psychedelic and other serotonergic compounds, while minimizing the side effects, thereby creating superior drugs to first-generation compounds, such as psilocybin.