Mind Medicine nasdaq Mnmd Stock Skyrockets over 50 Heres Why

Mind Medicine (NASDAQ: MNMD) Stock Skyrockets Over 50% – Here’s Why

Mind Medicine (MindMed) Inc. (NASDAQ: MNMD) stock surged over 50% on Thursday after launching a $175 million share offering.

Mind Medicine (MNMD) has announced the details of a $175 million share offering. The offering includes 16,666,667 (16.66 million) common shares priced at $6.00 each. In a simultaneous private placement, MindMed has also agreed to sell an extra 12,500,000 (12.50 million) shares at the same price to new investors, including Deep Track Capital and Commodore Capital.

The company expects the combined gross proceeds from the underwritten offering and private placement will reach around $175 million. However, this sum is subject to adjustments for underwriting commissions, placement agent fees, and other associated expenses. The anticipated closing date for the offering is around March 11, 2024, pending the fulfillment of customary closing conditions.

The underwritten offering has garnered keen interest from a range of new investors, featuring names like Ally Bridge Group, Driehaus Capital Management, Great Point Partners, LLC, Janus Henderson Investors, Marshall Wace, Octagon Capital, Soleus Capital, Special Situations Funds, Woodline Partners LP, and a prominent biotechnology investor associated with one of the largest alternative asset managers.

Leerink Partners and Cantor Fitzgerald & Co. have assumed pivotal roles as joint book-running managers for the underwritten offering and placement agents for the private placement, with RBC Capital Markets taking the lead manager position.

Mind Medicine (NASDAQ: MNMD) Stock Reaction

MNMD stock spiked 51.52% to close at $9 on Thursday. The traders had exchanged hands with 37,909,073 (37.90 million) shares compared to the average daily trading volume of 788.63K.