Late yesterday MindMed announced a 1:15 reverse stock split. While this news worried retail investors and sent some mild shockwaves through the halls of Reddit, the move was likely much less dramatic, meant to solidify investor perception and avoid being de-listed by the NASDAQ (many major exchanges have minimum price requirements and the extended market fink has kept MindMed under $1 for quite some time now).
According to the press release: “The reverse share split is intended to enable the Company to achieve several important corporate objectives, give the Company greater flexibility in considering and planning for future potential business needs, and to address the Nasdaq minimum bid price requirement.”
We’ll get more clarity next week, as MindMed will host its earnings call on Thursday, August 11, 2022, at 4:30 p.m. EDT to discuss its financial results for the quarter ended June 30, 2022 and provide a business update.
MindMed Board of Directors Approves Reverse Share Split
NEW YORK, Aug. 4, 2022 /PRNewswire/ — Mind Medicine (MindMed) Inc. (NASDAQ: MNMD), (NEO: MMED), (the “Company” or “MindMed”), a clinical stage biopharmaceutical company developing novel products to treat brain health disorders, today announced that its Board of Directors has approved a ratio of 1-for-15 reverse share split of its common shares. As a result of the reverse share split, there will be approximately 28.4 million shares of common shares issued and outstanding1. Post reverse share split, the common shares will continue to trade under the symbols “MNMD” on the Nasdaq and “MMED” on the Neo Exchange Inc. but the common shares will be assigned a new CUSIP number.
The listed warrants will continue to trade on the Neo Exchange Inc. under the symbols “MMED.WA”, “MMED.WR” and “MMED.WS”, as applicable, but will be assigned new CUSIP numbers, respectively, following the reverse share split. The listed warrants will be adjusted to reflect the reverse share split pursuant to the terms of their respective indentures and certificates, as applicable. All options, restricted share units, performance share units and deferred share units of the Company outstanding immediately prior to the reverse share split will be adjusted to reflect the reverse share split in accordance with the terms of their respective plans, as applicable.
The reverse share split is intended to enable the Company to achieve several important corporate objectives, give the Company greater flexibility in considering and planning for future potential business needs, and to address the Nasdaq minimum bid price requirement. In accordance with the Business Corporations Act
(British Columbia), no fractional shares of common shares will be issued as a result of the reverse share split. Each fractional common share remaining upon the reverse share split that is less than 1/2 of a common share will be canceled and each fractional common share that is at least 1/2 of a common share will be changed to one whole common share. Subject to completion of all required regulatory reviews and approvals, the reverse share split is expected to take effect after the close of business on August 26, 2022, with trading expected to begin on a split-adjusted basis on the Nasdaq and the Neo Exchange Inc. at market open on August 29, 2022.
Information for MindMed Shareholders
MindMed has chosen its transfer agent, Computershare Investor Services Inc., to act as exchange agent for the reverse share split. Shareholders owning shares via a bank, broker or other nominee will have their positions automatically adjusted to reflect the reverse share split, and will not be required to take further action in connection with the reverse share split, subject to brokers’ particular processes. For those shareholders holding physical share certificates, Computershare will send a letter of transmittal providing instructions for exchanging those certificates for share certificates or direct registration advice representing the post-split number of shares.
About MindMed
MindMed is a clinical stage biopharmaceutical company developing novel products to treat brain health disorders, with a particular focus on psychiatry, addiction, pain and neurology. Our mission is to be the global leader in the development and delivery of treatments that unlock new opportunities to improve patient outcomes. We are developing a pipeline of innovative drug candidates, with and without acute perceptual effects, targeting the serotonin, dopamine and acetylcholine systems.
MindMed trades on NASDAQ under the symbol MNMD and on the Canadian NEO Exchange under the symbol MMED.
For Media: media@mindmed.co
For Investors: ir@mindmed.co
Footnotes:
1. As of June 30, 2022, the Company had issued and outstanding 426,689,225 shares of common shares.
