Psychemedics board approves plan to terminate registration of common stock

Psychemedics announced that a transaction committee of the board comprised of independent directors has recommended, and the board has approved, a plan to cease the registration of the company’s common stock under the federal securities laws following the completion of a proposed reverse stock split and to delist its shares of common stock from trading on the Nasdaq Capital Market. It is expected that this plan would be effectuated in the fall of 2024, assuming the approval of Psychemedics’ stockholders at the company’s 2024 annual meeting of stockholders, among other things, as described below. Psychemedics is taking these steps to avoid the substantial cost and expense of being a public reporting company and to focus the company’s resources on enhancing long-term stockholder value. The company anticipates savings exceeding $900,000 on an annual basis as a result of the proposed deregistration and delisting transaction.