Shares of Mind Medicine (NASDAQ: MNMD), also known as MindMed, had crashed by 49.3% as of 12:08 p.m. ET Wednesday. The steep decline came after the clinical-stage biopharmaceutical company announced the pricing of its latest public offering.

MindMed plans to sell 7,058,823 common shares along with warrants to purchase 7,058,823 common shares. The company set a combined offering price of $4.25 for one share and one accompanying warrant.

The main problem with MindMed's secondary offering is that it dilutes the value of the company's existing shares. Investors understandably reacted negatively to the news. 

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Source Fool.com