Restore Mind Medicine
ISS Excuses Destructive,
Dilutive Financing
Market Close
8
6
2
0
OFCM Rejects MindMed's Proposal
Sept 12 Sept 16
2022 2022
MindMed Announes September Offering Pricing
MindMed Shares < $4.25. MindMed closed at $6.12
Sept 27
2022
Oct 12
2022
$1.73 - Effective price
of shares raised
ISS offered excuses and rationalizations for the value destructive and punitive
financing that even MindMed only half-heartedly defended.
The report attempted to excuse the Board's decision to complete the financing
by citing MindMed's statements that the cash runway improved to 2025.
However, as noted in our presentation, sell-side analysts are now projecting
that MindMed will not have sufficient cash to last through 2024. Further,
MindMed's share price declined almost immediately following the
announcement of the destructive offering in after-hours trading.
The report conflates MindMed's cash raising through its at-the-money offering
with its destructive financing in an apparent attempt to paint a better picture.
ISS' own chart on the issue is misleading as its estimates project MindMed's
runway at twice what management predicts. MindMed is below its peer
median.
"It is therefore difficult to pin the drop in the company's share price solely on the
board's oversight of the company's financing decisions." -- ISS
Source: Company SEC Filings. Pricing from Refinitiv and Pitchbook. Recovery defined based on closing price. See ISS Report.
3View entire presentation