Mind Medicine (NEO: MMED) has elected to destroy shareholder value in a major way this morning, pricing yet another financing despite significant money in company coffers. What’s more, is the financing is at a significant discount to market.
The financing will see the company sell 7.1 million units, with each unit containing one common share and one common share purchase warrant at a price of US$4.25 per unit. Warrants to be issued under the financing contain an exercise price of $4.25, and are valid for a period of five years.
The offering is not being made available to residents of Canada, with the financing expected to raise gross proceeds of roughly $30 million. Both Cantor and RBC Capital Markets are acting as lead joint bookrunners on the offering.
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Most significantly, the offering represents a 30.5% discount to yesterdays closing price on the Nasdaq.
As of June 30, the company reported a cash position of $105.7 million.
Mind Medicine last traded at $8.35 on the Neo.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
