Mind Medicine Prices $30 Million Offering At 30% Discount To Market
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.
READ: MindMed Starts Dosing Patients In Phase 1 Clinical Study On MDMA-Like Substances
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.
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As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.