Psychedelics Company MindMed Prices Public Offering Aiming To Raise $75M

Zinger Key Points
  • MindMed priced an underwritten public offering of 9.29 million shares without par value at $7.00 per share.
  • The company intends to use the proceeds from the offering to support the research and development of its product candidates.

A psychedelics-focused biopharmaceutical company Mind Medicine (MindMed) MNMD announced Friday the pricing of an underwritten public offering of 9.29 million shares without par value, at a price of $7.00 per share. Through this round, the New York-headquartered company aims to raise $75 million.

MindMed also announced offering pre-funded warrants to certain investors, allowing them to buy 1.43 million shares at a price of $6.999 per pre-funded warrant.

The company intends to use the proceeds from the offering to support the research and development of its product candidates, working capital and general corporate purposes.

Leerink Partners and Evercore ISI are acting as the joint bookrunning managers for the offering. RBC Capital Markets and Oppenheimer & Co. are acting as lead managers.

The offering is expected to close on or about August 12, 2024, subject to the satisfaction of customary closing conditions. No distribution under the offering shall occur in Canada or to a person resident in Canada.

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The offering comes about a month after the company announced the issuance of a new patent by the U.S. Patent and Trademark Office (USPTO) covering MM120 (lysergide). MM120 is currently in clinical development for adults with generalized anxiety disorder (GAD) and presents opportunities for treating a range of additional brain health disorders.

The newly issued patent (USPN 12,036,220) includes claims covering the pharmaceutical formulation, methods of manufacturing and method of treatment for MM120 ODT, MindMed's proprietary and pharmaceutically optimized form of lysergide (LSD). The pharmaceutical formulation patent is the first US patent issued on the MM120 ODT formulation and extends the company's intellectual property protection for MM120 through 2041.

Price Action

MindMed shares traded 2.32% lower at $6.75 per share during Monday's pre-market session.

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