Shares of Mind Medicine (NASDAQ: MNMD) tanked in pre-market trading on Wednesday as the clinical-stage biopharmaceutical company announced a public offering of 7 million common shares along with warrants to purchase 7 million common shares.
MindMed has priced the combined offering of each common share and accompanying warrant at $4.25 per share. The accompanying warrant can be exercised immediately with an exercise price of $4.25 per share with an expiry of five years from the date of issuance.
The company expects gross proceeds of around $30 million and the offering is expected to close on and around September 30.
Is MindMed a Buy or Sell?
MindMed gets a Strong Buy consensus rating from Wall Street ratings based on four unanimous Buys. The average price forecast for MindMed stock is $32.88 implying an upside potential of 437.2%.