As reported recently, Mydecine has been going through some volatile moments as of late. A majority of the board has resigned and there are serious questions about them potentially closing shop.
The company did announce the sale of its Mindleap digital platform for $4 million and the CEO says they’re working on reshifting resources, but the industry has doubts.
Case in point, Roth Capital has suspended its previously bullish price target and Buy rating, citing a lack of clarity on financing and cash reserves.
Mydecine announced a series of financing transactions, including a Subscription Agreement with an investor for up to C$10MM by February 28, 2023. It is uncertain at what price new shares could be issued in the future. It is also unknown, whether the financing is sufficient to satisfy near-term capital needs. Therefore, we suspend our previous Buy rating and C$2.80/share price target, until further clarity is provided projected shares outstanding.
See below for a look at the company update.
