Investor Concerns Mount Over InnoCan Pharma’s U.S. Listing Plan

Shares of InnoCan Pharma are attempting to stabilize following a period of significant volatility, with a steep 31% decline last week prompting a technical rebound. The source of market anxiety is a proposed U.S. listing, a move that has overshadowed recent operational progress and ignited substantial fears among existing shareholders regarding potential equity dilution.

Setting aside the immediate financing concerns, the company's underlying business shows resilience. For the first nine months of the year ending September 2025, InnoCan generated revenue of $21.6 million. While this represents a decrease of approximately 10% compared to the prior-year period, the wellness segment maintains a robust gross margin of 90%.

These consumer-driven revenues form the financial foundation for the firm's research and development initiatives, which are capital-intensive. Recent advancements include positive toxicology data for its LPT-CBD platform, presented in November. CEO Iris Bincovich has outlined plans to commence clinical human studies within the next 18 months. As of September 30, the company reported cash and equivalents of $7.27 million.

The Mechanics of the Proposed Offering

The catalyst for the recent share price weakness is an amended registration statement filed with the U.S. Securities and Exchange Commission (SEC) on December 10, 2025. The pharmaceutical company intends to issue units, each comprising one common share and one warrant, with an indicative price of $5.50.

Should investors sell immediately? Or is it worth buying InnoCan Pharma?

This proposed structure is causing unease. Following a 1-for-65 reverse stock split executed on September 5, the current share count stands at only about 4.5 million. Investors are apprehensive that the new issuance could lead to a meaningful dilution of their existing holdings. The planned listing is slated for the NYSE American exchange under the symbol "INNP."

Technical and Structural Factors Take Center Stage

Currently, technical factors related to the U.S. listing process are exerting more influence on the stock's trajectory than fundamental business metrics. The unit structure with attached warrants could encourage arbitrage trading, potentially creating additional downward pressure on the share price.

The earlier reverse split was a necessary step to meet U.S. exchange minimum price requirements. However, in combination with the forthcoming capital raise, it has introduced uncertainty regarding the final capital structure and total share count.

Market attention is now firmly fixed on the next steps: final SEC approval and the determination of the definitive offering price. Until clarity emerges on the final offering volume and the level of institutional demand, elevated volatility is likely to persist. For shareholders, the primary focus remains the actual degree of dilution once trading commences stateside.