MindMed (NASDAQ:MNMD) stock is plunging 51% today after the drug maker announced yesterday shortly before the market closed that it would sell an undisclosed number of common shares of MMED stock, along with an undisclosed number of warrants. The company did not indicate the price at which the securities would be sold.
Subsequently, MindMed, which says that it develops “psychedelic-inspired medicines,” last night announced that it would sell 7.058 million shares of its stock, along with an equal number of warrants.
Additionally, the company reported that: “The combined offering price to the public of each common share and accompanying warrant is $4.25. Each common share will be sold in combination with an accompanying warrant, and each warrant is exercisable to purchase one common share. The accompanying warrant will be immediately exercisable and has an exercise price of $4.25 per common share.”
MindMed anticipates that it will generate gross proceeds of $30 million from the deal.
MNMD Stock: MindMed’s Lead Drug Candidate
The company’s lead drug candidate –MM-120 — is “LSD D-tartrate,” according to MindMed. LSD D-tartrate is “a common salt form of LSD,” a hallucinogen that has been used recreationally since the 1960s.
The company reports that MM-120, when used as a psychiatric drug, has triple the impact of “available affective disorder therapies.” MNMD is also testing MM-120 as a treatment for pain. MindMed reports that the drug has been tested in “10,000+ patients” and has exhibited “well-characterized tolerability.”
MM-120 is currently undergoing a Phase-2 trial which will assess the drug’s efficacy as a treatment for anxiety.
MindMed’s CEO
Robert Barrow became MindMed’s Chief Development Officer in January 2021 and was named the company’s CEO in June of that year.
Before joining MindMed, he was the “Director of Drug Development & Discovery at Usona Institute, where he oversaw preclinical, clinical and regulatory development efforts for all of Usona’s development programs,” according to MindMed’s website.
On the date of publication, Larry Ramer did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
