Anebulo abandons reverse stock split, launches tender offer instead

Anebulo Pharmaceuticals Inc. (NASDAQ: ANEB) announced that its board of directors decided to commence a cash tender offer to purchase up to 300,000 shares at $3.50 per share, abandoning a previously announced reverse stock split plan.

The clinical-stage pharmaceutical company, which develops treatments for acute cannabis-induced toxic effects, said the board determined that costs of the proposed reverse stock split now outweigh the benefits. The company had previously announced a reverse stock split at a ratio between 1-for-2,500 and 1-for-7,500.

According to the company's statement, the increased costs resulted from shareholders acquiring shares through multiple accounts with fewer than 2,500 shares or splitting existing holdings to receive multiple fractional share payments following the reverse split announcement. This activity significantly increased the expected transaction cost.

The tender offer is part of Anebulo's plan to go private and will help the company maintain its stockholder count below 300, which is necessary for the private transaction. The board stated it may pursue alternative transactions in the future if deemed beneficial.

"The expense of the proposed reverse split transaction, due to the significant increase in multiple account purchases, has grown to a point that it now exceeds the benefits it would generate for our remaining stockholders," said Richie Cunningham, president and chief executive officer.

The company plans to file tender offer documents, including a Schedule TO with the Securities and Exchange Commission. The tender offer has not yet commenced, and the announcement serves informational purposes only.

Anebulo is developing selonabant, a treatment for cannabis-induced toxicity that completed Phase 2 clinical trials. The company is currently prioritizing an intravenous formulation for pediatric patients and initiated a Phase 1 study in September.

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