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.
For further details see:
Why Mind Medicine Stock Soared on a Down Day for the Market