Enveric Biosciences stock rose 2.3% in premarket trades on Monday after the company said it submitted a confidential form S-1 draft registration statement with the U.S. Securities and Exchange Commission for the spin-off of its cannabinoid clinical development pipeline to a wholly-owned subsidiary, Akos Biosciences Inc. The spinoff will take place in the form of a dividend to Enveric shareholders. Enveric Biosciences CEO Joseph Tucker said the company believes the spin-off will unlock the value of Akos and create greater strategic focus for each company as separately traded stocks. Enveric shareholders will own a majority of Akos, which is expected to be listed on the Nasdaq in the first half of 2023. The dividend will be treated as a taxable event for U.S. federal income tax purposes. Enveric Biosciences will continue to operate as a biotechnology company dedicated to the development of novel small-molecule therapeutics for the treatment of anxiety, depression and addiction disorders.
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