MindMed (NASDAQ:MNMD) stock isn’t doing so hot with shares taking a beating on the first day of trading at their new home.
MNMD stock joined the Nasdaq Exchange Tuesday after previously trading on the OTC Markets. The company’s move to the Nasdaq was to increase the visibility of its stock in hopes of reaching out to a new group of investors.
Unfortunately, that plan doesn’t seem to be going well today. Shares of MNMD stock are dropping roughly 17% as of this writing and it doesn’t look like they’ll be making their way back up before the day is out.
While we don’t have a Nasdaq daily average to compare to, MNMD is also seeing quite a bit of trading on its first day on the Nasdaq. That’s resulted in some 37 million shares changing hands in the morning hours. Before the uplist, its daily average trading volume was closer to 2.7 million shares.
It’s worth pointing out that the fall in price and heavy trading does make sense for MNMD stock. With its price hanging below $5 per share, that puts it in the penny stock range. Penny stocks are subject to heavy volatility, which is one of the reasons that risk-averse investors avoid them.
Even with today’s negative movement hitting MNMD stock, it’s still up 60.5% since the start of the year. That’s partially due to investors building the stock up ahead of its uplisting to the Nasdaq. That could also explain today’s fall as share prices retreating back to a more suitable level for the stock.
MindMed is a clinical-stage company focused on discovering, developing, and launching psychedelic-inspired medicines. It was several in development that it hopes to bring to market.
Investors that aren’t sold on MNMD do have other psychedelic stock options.
Several other companies in the space are hoping to strike success as people become more accepting of the drugs for medical treatments. That includes COMPASS Pathways (NASDAQ:CMPS), Numinus Wellness (OTCMKTS:LKYSF), and others. You can learn more at the links below.
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- Best Psychedelic Stocks for 2021
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.
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