Shares of the psychedelic medicine company Mind Medicine (MindMed) (NASDAQ: MNMD) tumbled by a heftly 23% through the first three and half days of trading this week, according to data from S&P Global Market Intelligence . The good news is that the novel healthcare company's stock didn't lose ground in response to a negative clinical catalyst or regulatory development.
Instead, shareholders simply appear to be reacting to MindMed's recent 1-for-15 reverse stock split, which took effect on Aug. 29. The company enacted this reverse stock split in order to maintain compliance with Nasdaq 's $1 minimum bid requirement.
Over the prior 12 months, MindMed's shares had lost 71% of their value , putting its stock at risk of being delisted by the Nasdaq exchange. Mr. Market slashed the company's valuation over this period in response to rising interest rates, geopolitical unrest, and a growing aversion to risk by investors in general.
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Why Mind Medicine (MindMed) Stock Tumbled This Week