After a major business development, the share price of Anebulo Pharmaceuticals, Inc. (NASDAQ: ANEB) skyrocketed. The stock of ANEB rose 76.23% to $3.22 as of the most recent trading session.
The increase followed the company’s announcement that a reverse stock split had been suggested by a Special Committee made up of independent directors and authorized by the Board of Directors. This action is a component of a larger plan to turn the business into a privately held company.
Going Private Strategy and Stockholder Implications
The planned reverse stock split falls between 1 for 2,500 and 1 for 7,500. The Board alone will decide the final ratio, which will be made public without additional shareholder approval. Reducing the total number of shareholders will allow the business to drop its Securities and Exchange Commission (SEC) registration and get rid of its public reporting requirements.
Shareholders holding fewer than the “Minimum Number” of shares—between 2,500 and 7,500 depending on the final ratio—prior to the effective date will receive $3.50 in cash per pre-split share. They will no longer remain shareholders after the split. Meanwhile, those owning shares in excess of the Minimum Number will retain post-split equity and receive cash in lieu of fractional shares.
Premium Offer Highlights Value Proposition
The payout of $3.50 per share, which is 91% higher than the stock’s closing price on July 22, 2025, highlights the company’s intention to provide significant value to its stakeholders. There is no assurance that the reverse split will be carried out in its entirety, though, since it is still contingent upon shareholder approval and other normal requirements.
Strategic Reorientation to Prioritize Core Goals
The costs of complying with regulations as a publicly traded company have increased, according to Anebulo. The goal of the move is to cut costs, focus on growing its product pipeline, and streamline operations. If the Board decides the transaction no longer serves the interests of shareholders, it has the right to revoke the reverse split at any time.
