Clearmind Medicine's Shares Plunge After Registered Direct Offering
Clearmind Medicine, a biotechnology company, saw its shares plummet by 45% to $1.62 following its entry into definitive agreements with institutional investors for the purchase and sale of shares and pre-funded warrants in a registered direct offering.
Despite a 42% increase in stock value at the close of Wednesday's session, Clearmind Medicine has experienced a staggering 99% decline over the past year.
In addition to the registered direct offering, the company has also agreed to conduct a concurrent private placement with the same investors, in which it will sell common warrants. The anticipated revenue from both transactions is estimated to be $2.4 million.
The expected closing date for these deals is set for Tuesday. Clearmind Medicine intends to allocate the proceeds from these offerings, alongside its existing cash reserves, towards general corporate purposes and working capital.
Furthermore, on Wednesday, the company revealed that it successfully concluded a Type A meeting with the Food and Drug Administration (FDA). The purpose of this meeting was to discuss Clearmind Medicine's clinical trial of its proprietary MEAI-based compound CMND-100. This compound aims to revolutionize alcohol-use disorder treatment through psychedelic-based therapy.
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