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Over the course of the past month or so, psychedelic based medicine developer Mind Medicine (OTCQB:MMEDF) has seen its stock go on a remarkable rally and it is no wonder that it is the point of focus for many investors. In the past month, the Mind Medicine stock has gained as much as 200% and recently hit a new high of $1.08 a share.
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Key Developments
There have been certain key developments that have contributed towards this rally in the stock and it could be worthwhile to take a closer look at those. Earlier on in September, the company announced that it is considering the option of expanding its investor base by uplisting to the NASDAQ. The company announced that it had already submitted its application to the exchange.
That being said, it should be noted that Mind Medicine’s business is going to be scrutinized by the exchange before the exchange comes to a decision. There is no guarantee that the application is going to be successful. However, it remains a cause for optimism among investors.
On the other hand, it is also necessary to keep in mind that Mind Medicine is a pioneer in this space and was the first psychedelic medicine company to have been publicly listed.
Cash Rich
At this point, it is listed on the NEO exchange and commands a market capitalization of $180 million. The company has managed to get the necessary licenses for as many as nine trials surrounding MDMA at the Liechti Lab located in Switzerland.
The New York-based company boasts of a cash balance of $24 million and that could allow it to continue to innovate. The freedom to innovate further is expected to give Mind Medicine a distinct competitive advantage over many of its competitors. That, in turn, could prove to be a significant boost for the stock.
The company is however all set to improve its financial situation further. Earlier in October, Mind Medicine announced that its lead underwriter Canaccord Genuity is going to pick up 23.81 million units under the provisions of a bought deal transaction.
The units will go for C$1.05 each and help raise around C$25 million. In addition to that, the underwriters have the option of going for an additional 3.67 million units if they so wish. The offering is going to end on 30 October. Investors could do well to keep an eye on the Mind Medicine stock over the coming months.
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