Why MindMed Stock Is Tanking Today

Mind Medicine Inc MNMD shares are trading lower Wednesday after the company announced a proposed public offering of common shares.

MindMed said it will offer 7,058,823 common shares with accompanying warrants to purchase 7,058,823 common shares. The combined offering price to the public is $4.25.

Each common share will be sold in combination with an accompanying warrant. The accompanying warrant will be immediately exercisable with an exercise price of $4.25 per share and expires five years from the date of issuance.

MindMed expects to generate gross proceeds of approximately $30 million from the offering, which is expected to close on or around Sept. 30.

MindMed is a clinical stage biopharmaceutical company developing novel products to treat brain health disorders. 

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MNMD Price Action: MindMed is making new 52-week lows on Wednesday.

The stock was down 47.4% at $3.22 at time of publication, according to Benzinga Pro.

Photo: Gerd Altmann from Pixabay.