MindMed Launches $75 Million Public Offering to Fund Psychedelic Research

LOS ANGELES- Mind Medicine (MindMed) Inc. announced a public offering aimed at raising $75 million through the sale of approximately 9.2 million shares at $7 each. The company is also offering around 1.4 million shares at a slightly discounted price of $6.99 to select investors. The offering is expected to close on August 12, with Leerink Partners and Evercore ISI acting as joint bookrunning managers.

Proceeds from the offering will be used to support research and development for MindMed’s psychedelic treatments, particularly those in clinical trials targeting anxiety disorders.

During its first-quarter earnings call in May, the company reported a cash reserve of $252.3 million, expected to sustain operations until 2026. However, MindMed also reported a net loss of $54.4 million for Q1 2024 and an accumulated deficit of $344.6 million.

MindMed is currently progressing its development pipeline, including MM120, an LSD-based drug aimed at treating generalized anxiety disorder. The drug has received Breakthrough Therapy designation from the FDA, underscoring the potential of MindMed’s treatments to advance toward market approval.