Why Mind Medicine Stock Soared on a Down Day for the Market
In sharp contrast to a diving S&P 500 index, Mind Medicine (NASDAQ: MNMD) stock rose on Thursday. Shares of the psychedelic-medicine developer reversed course from Wednesday, increasing by more than 6%, as a major investor strongly pushed back against a large planned secondary-stock issue.
That investor is a firm called FCM MM Holdings, which says it owns just over 6% of MindMed's outstanding common shares. In a letter to MindMed's board of directors dated Wednesday, FCM formally requested that the company immediately cancel its planned share-and-warrant offering.
MindMed is to issue just over 7.05 million shares. Each will have an accompanying warrant allowing the holder to buy an additional share. The price of this package is $4.25 apiece.
Source Fool.com
