MindMed (NASDAQ: MNMD) has seen its activist investor file a preliminary proxy statement for its proposed set of directors after the firm indicated last year it intended to work to take control of the company. The activist investor, FCM MM Holdings, is ran by a former co-founder of MindMed, Dr Scott Freeman.
Describing itself as “one of MindMed’s largest investors,” the firm has just a 3.5% stake in the company, yet is attempting to exert control. FCM proposed a total of four directors for the firms board, including Dr Scott Freeman, co-founder of MindMed and former Chief Medical Officer, Dr Farzin Farzaneh, a professor of molecular medicine at King’s College London, Vivek Jain, a venture capitalist, and Alexander Wodka, a former partner at Crowe.
In announcing that the filing has been made, FCM highlighted that MindMed has seen its shares decline 89% over the past year, despite its peer group falling on average 62%.
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The firm also addressed recent comments by MindMed wherein the company referred to FCM as not having paid a “control premium,” which FCM claims is “simply mendacious,” given the fact that they are not seeking a buy out (they just want control instead). FCM claims that they are simply looking to repair operational challenges and restore shareholder value.
“Since 2021, I have been proactively engaging the Board about the delays in the MM-110 and MM-120 programs. Unfortunately, these entreaties were ignored, and subsequently, management botched the MM-110 program while the MM-120 program is over a year behind schedule due to a myriad of operational failures. As a result, I believe the only path forward for MindMed is an immediate reconstitution of the Board,” commented Freeman.
MindMed last traded at $3.81 on the Nasdaq.
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