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InMed Reports First Quarter Fiscal 2027 Financial Results and Provides Corporate Update
Vancouver, British Columbia--(Newsfile Corp. - November 3, 2026) - InMed Pharmaceuticals Inc. (NASDAQ: INM) ("InMed" or the "Company"), a pharmaceutical company focused on developing a pipeline of proprietary small molecule drug candidates for diseases with high unmet medical needs, today reported financial results for its first quarter of fiscal 2027, ended September 30, 2026, and provided a corporate update.
The Company's full financial statements and related MD&A for the quarter ended September 30, 2026, are available at www.inmedpharma.com, www.sedarplus.ca and www.sec.gov.
"We are approaching an important milestone in our proposed merger with Mentari Therapeutics, with our annual general and special meeting scheduled for November 4, 2026," commented Eric A. Adams, InMed President and CEO. "Our focus remains on completing the transaction, which we believe provides shareholders with an opportunity to participate in the development of Mentari's migraine prevention pipeline. In parallel, we continue to pursue opportunities to realize value from InMed's legacy pharmaceutical assets for our shareholders through the proposed contingent value rights structure."
Corporate Update
Proposed Merger with Mentari Therapeutics
InMed continues to work toward completing its proposed merger with Mentari Therapeutics, Inc. ("Mentari"), a privately held biotechnology company developing therapies for migraine prevention. Following completion of the transaction, the combined company is expected to operate under the Mentari Therapeutics name and seek to trade on the Nasdaq Capital Market under the ticker symbol "MTRI," subject to Nasdaq approval.
Mentari has announced private placements totaling approximately US$490 million in expected aggregate gross proceeds in connection with the transaction. This financing is expected to support operations into 2029, including through Phase 2a readouts for both of Mentari's lead PACAP-targeted programs.
The proposed merger is expected to close in the fourth quarter of calendar 2026, subject to the satisfaction or waiver of the remaining closing conditions, including the required shareholder approvals.
Annual General and Special Meeting - November 4, 2026
InMed's annual general and special meeting of shareholders is scheduled for November 4, 2026, at 12:00 p.m. Eastern Time. Shareholders will be asked to consider proposals necessary to complete the proposed merger and related transactions, together with customary annual meeting business.
The definitive proxy statement/prospectus and management information circular provides details of the transaction, the proposals to be considered and instructions for voting. Shareholders are encouraged to review these materials carefully and submit their votes before the applicable voting deadline. InMed's Board of Directors recommends that shareholders vote "FOR" the proposals described in the meeting materials.
Nasdaq Compliance Update
On September 16, 2026, InMed received a letter from the Listing Qualifications Department of The Nasdaq Stock Market LLC ("Nasdaq") notifying the Company that its shareholders' equity of $1,075,007, as reported in its Annual Report on Form 10-K for the fiscal year ended June 30, 2026, was below the $2.5 million minimum required under Nasdaq Listing Rule 5550(b)(1). The notice had no immediate effect on the listing of the Company's common shares, and Nasdaq provided the Company with 45 calendar days to submit a plan to regain compliance.
On October 30, 2026, the Company submitted its compliance plan and Nasdaq indicated that it had accepted the compliance plan, and determined that InMed has until March 15, 2027, to regain compliance with Nasdaq Listing Rule 5550(b)(1). The Company expects completion of the proposed merger with Mentari and the associated pre-closing financing to enable it to regain compliance with the minimum shareholders' equity requirement. There can be no assurance that Nasdaq will accept the Company's plan or that the Company will regain compliance within any granted extension period.
InMed Pharmaceutical Assets
During the quarter, InMed completed a pre-IND meeting with the FDA and reached alignment on the next steps in the development of INM-901 in the treatment of Alzheimer's disease.
InMed continues to pursue potential divestiture, licensing and other strategic opportunities for its legacy pharmaceutical programs: INM-901 for Alzheimer's disease, INM-089 for dry age-related macular degeneration and INM-755 for dermatological indications.
The proposed merger transaction includes a contingent value rights ("CVR") structure intended to allow eligible InMed shareholders to participate in potential proceeds from the future monetization of these assets, subject to the terms of the CVR agreement. There can be no assurance that an asset transaction will be completed or that any payments will be made under the CVRs.
Financial Commentary
The Company's research and development expenses were $0.2 million for the three months ended September 30, 2026, compared with $0.6 million for the three months ended September 30, 2025. The decrease is primarily due to a reduction in operating activity resulting from the pending Merger.
The Company incurred general and administrative expenses of $1.8 million for the three months ended September 30, 2026, compared with $1.2 million for the same period in 2025.
As of September 30, 2026, the Company's cash and cash equivalents were $1.0 million, compared with $2.2 million as of June 30, 2026. The Company continues to closely monitor expenses while working toward completing the proposed merger with Mentari and pursuing strategic opportunities for its legacy pharmaceutical assets.
Based on current forecasts, the Company expects its available cash to fund planned operating expenses and capital expenditures into mid-November, depending on the level and timing of expenditures and the timing of completion of the proposed merger.
| InMed Pharmaceuticals Inc. CONDENSED CONSOLIDATED BALANCE SHEETS Expressed in U.S. Dollars  |   |   |   |   |   |   |
|   |   |   |   |   |   |   |
| September 30, | June 30, | |||||
| 2026 | 2026 | |||||
| Unaudited | ||||||
| $ | $ | |||||
| ASSETS |   |   | ||||
| Current |   |   | ||||
| Cash and cash equivalents | 1,094,488 | 2,194,413 | ||||
| Short-term investments | 40,331 | 39,670 | ||||
| Prepaids and other current assets | 99,682 | 241,296 | ||||
| Held for sale equipment | 17,583 | 20,000 | ||||
| Current assets of discontinued operations | 11,355 | 181,327 | ||||
| Total current assets | 1,263,439 | 2,676,706 | ||||
|   |   | |||||
| Non-Current |   |   | ||||
| Property, equipment and ROU assets, net | - | 221,037 | ||||
| Other assets | 42,423 | 132,324 | ||||
| Total Assets | 1,305,862 | 3,030,067 | ||||
|   |   | |||||
| LIABILITIES AND SHAREHOLDERS' EQUITY |   |   | ||||
| Current |   |   | ||||
| Accounts payable and accrued liabilities | 2,493,903 | 1,843,327 | ||||
| Current liabilities of discontinued operations | 11,355 | 111,733 | ||||
| Total Liabilities | 2,505,258 | 1,955,060 | ||||
| Commitments and Contingencies (Note 8) |   |   | ||||
|   |   | |||||
| Shareholders' Equity |   |   | ||||
| Common shares, no par value, unlimited authorized shares: 5,493,735 and 5,339,436 as of September 30, 2026 and June 30, 2026, respectively, issued and outstanding | 94,408,309 | 94,282,698 | ||||
| Additional paid-in capital | 36,824,910 | 36,894,146 | ||||
| Accumulated deficit | (132,561,184 | ) | (130,230,406 | ) | ||
| Accumulated other comprehensive income | 128,569 | 128,569 | ||||
| Total Shareholders' Equity | (1,199,396 | ) | 1,075,007 | |||
| Total Liabilities and Shareholders' Equity | 1,305,862 | 3,030,067 | ||||
|   |   |
 
| InMed Pharmaceuticals Inc. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) Expressed in U.S. Dollars  |   |   |   |   |   |   |
| For the Three Months Ended | ||||||
| September 30, | ||||||
| 2026 | 2025 | |||||
| $ | $ | |||||
| Operating Expenses | ||||||
| Research and development | 206,015 | 575,458 | ||||
| General and administrative | 1,804,625 | 1,239,058 | ||||
| Amortization and depreciation | 168 | 52,603 | ||||
| Foreign exchange loss | (1,488 | ) | 56,994 | |||
| Total operating expenses | 2,009,320 | 1,924,113 | ||||
|   |   | |||||
| Other Income (Expense) |   |   | ||||
| Interest and other income | 14,308 | 93,765 | ||||
| Loss from continuing operations before taxes | (1,995,012 | ) | (1,830,348 | ) | ||
|   |   | |||||
| Income tax expense | - | - | ||||
| Net loss from continuing operations | (1,995,012 | ) | (1,830,348 | ) | ||
|   |   | |||||
| Discontinued operations: |   |   | ||||
| Income (Loss) from discontinued operations | (335,766 | ) | 103,449 | |||
|   |   | |||||
| Net Loss | (2,330,778 | ) | (1,726,899 | ) | ||
|   |   | |||||
| Net loss per share for the year |   |   | ||||
| Basic and diluted: |   |   | ||||
| Continuing operations | (0.36 | ) | (0.46 | ) | ||
| Discontinued operations | (0.06 | ) | 0.03 | |||
|   |   | |||||
| Net loss per share attributable to Common Stockholders - basic and diluted | (0.42 | ) | (0.44 | ) | ||
| Weighted average outstanding common shares |   |   | ||||
| Basic and diluted | 5,469,448 | 3,954,549 | ||||
|   |   | |||||
 
| InMed Pharmaceuticals Inc. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) Expressed in U.S. Dollars  |   |   |   | |||
|   |   |   |   | |||
| For the Three Months | ||||||
| Ended September 30, | ||||||
| 2026 | 2025 | |||||
| $ | $ | |||||
| Cash provided by (used in): | ||||||
| Operating Activities | ||||||
| Net loss | (2,330,778 | ) | (1,726,899 | ) | ||
| Items not requiring cash: |   |   | ||||
| Amortization and depreciation | 168 | 53,202 | ||||
| Share-based compensation | 16,375 | 20,205 | ||||
| Amortization of right-of-use assets | 220,869 | 103,478 | ||||
| Interest income received on short-term | (661 | ) | - | |||
| Unrealized foreign exchange loss | - | 1,883 | ||||
| Changes in operating assets and liabilities: |   |   | ||||
| Prepaids and other currents assets | 141,614 | 131,875 | ||||
| Other non-current assets | 89,901 | - | ||||
| Accounts payable and accrued liabilities | 650,577 | (389,881 | ) | |||
| Lease obligations | - | (107,412 | ) | |||
| Operating cash flow used by discontinued operations | 69,593 | (17,254 | ) | |||
| Total cash used in operating activities | (1,142,342 | ) | (1,930,803 | ) | ||
|   |   | |||||
| Investing Activities |   |   | ||||
| Sale of held for sale equipment | 2,417 | - | ||||
| Sale of short-term investments | - | 20,957 | ||||
| Purchase of short-term investments | - | (20,957 | ) | |||
| Total cash provided by investing activities | 2,417 | - | ||||
|   |   | |||||
| Financing Activities |   |   | ||||
| Proceeds from the exercise of warrants | 40,000 | - | ||||
| Share issuance costs | - | (137,178 | ) | |||
| Total cash provided by (used in) financing activities | 40,000 | (137,178 | ) | |||
|   |   | |||||
| Decrease in cash and cash equivalents during the period | (1,099,925 | ) | (2,067,981 | ) | ||
| Cash and cash equivalents beginning of the period | 2,194,413 | 10,743,430 | ||||
| Cash and cash equivalents end of the period | 1,094,488 | 8,675,449 | ||||
|   |   | |||||
| SUPPLEMENTARY CASH FLOW INFORMATION: |   |   | ||||
| Cash paid during the period for: | - | - | ||||
| Income taxes | $ | - | $ | - | ||
| Interest | $ | - | $ | - | ||
|   |   | |||||
 
About InMed
InMed Pharmaceuticals is a pharmaceutical company focused on developing a pipeline of proprietary small molecule drug candidates targeting the CB1/CB2 receptors. InMed's pipeline consists of three separate programs in the treatment of Alzheimer's, ocular and dermatological indications. For more information, visit www.inmedpharma.com.
Investor Contact:
Colin Clancy
Vice President, Investor Relations
and Corporate Communications
T: +1.604.416.0999
E: ir@inmedpharma.com
Cautionary Note Regarding Forward-Looking Information:
This news release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking information") within the meaning of applicable securities laws. Forward-looking inf