Why Clearmind Medicine (CMND) Shares Are Nosediving

Clearmind Medicine Inc CMND shares are trading lower by 45% to $1.61 Thursday morning after the company finalized agreements with institutional investors for a registered direct offering.

What Happened?

The offering includes the sale of 1.5 million Common Units, comprising Common Shares or Pre-Funded Warrants, along with PIPE Common Warrants. The public offering price per Common Unit is $1.60, with aggregate gross proceeds expected to be approximately $2.4 million.

The Pre-Funded Warrants are immediately exercisable, and the PIPE Common Warrants expire 60 months after the initial issuance date. The transactions are set to close around January 16, 2024, with the net proceeds intended for general corporate purposes and working capital.

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According to data from Benzinga Pro, CMND has a 52-week high of $210.00 and a 52-week low of $2.04.