Mind Medicine launches new public offering to raise $75 million

New York-based Mind Medicine (Nasdaq: MNMD) announced a new public offering of roughly 9.2 million shares at $7 each, which is aimed at raising $75 million for the psychedelics company.

According to the press release announcing the offering, some investors will be given the option of purchasing about 1.4 million shares at a slight discount of $6.99, the company said. The influx of cash will be used by MindMed for research and development on its psychedelic treatments that are still undergoing clinical trials for anxiety patients.

The offering is slated to close on Aug. 12, with Leerink Partners and Evercore ISI acting as the joint bookrunning managers.

MindMed disclosed after its first fiscal quarter of the year that it had $252.3 million in cash, enough to last until 2026, as it continues in the pre-revenue stage with product development and clinical trials. But it also had an accumulated deficit of $344.6 million, and a $54.4 million net loss in the first quarter of 2024 alone.

The company also reported burning through $16.6 million during the quarter for operating expenses, along with $11.7 million for research and development expenses and general administrative expenses of $10.5 million.

The U.S. Food and Drug Administration has granted Breakthrough Therapy designation to one of its promising drugs that is still in development, MM120, a version of LSD that targets generalized anxiety disorder. The news means the company is making solid progress toward bringing a psychedelic treatment to market in the not-too-distant future.