Mind Medicine Lists on NASDAQ

Mind Medicine Inc. listed on the NASDAQ yesterday under the symbol MNMD and closed at $4.57 per share. It is important to note that MNMD’s shares outstanding are a lot higher than most financial portals are reporting. Most web sites are only showing MNMD’s total subordinate shares outstanding and ignoring its multiple voting shares outstanding. It is important to include both classes of stock in MNMD’s total share count. Including MNMD’s multiple voting shares outstanding and recently issued subordinate shares from MNMD’s most recent private placement the company has total shares outstanding today of 398,523,435. In addition, MNMD has 20,087,675 in-the-money warrants and 22,592,427 in-the-money options. Therefore, MNMD’s shares outstanding will likely increase by 42,680,102 shares in the upcoming months to a total of 441,203,537. The in-the-money warrants/options will only generate total proceeds to the company of $31,989,078 so they will be very dilutive with an average exercise price of $0.75 per share.

To accurately calculate MNMD’s current valuation it is important to include in-the-money warrants/options for a total share count of 441,203,537. Therefore, MNMD at yesterday’s closing price of $4.57 has a total market cap of $2.016 billion. As of March 9th MNMD has $162 million in cash. The in-the-money warrants/options if exercised would increase MNMD’s cash position to $194 million. Therefore, MNMD has an enterprise value today of $1.822 billion.

It is important to note that MNMD has an additional 20,930,000 out-of-money warrants from its January private placement with an exercise price of $4.68 per share. It is no coincidence that MNMD this morning in pre-market trading is up $0.11 to $4.68 per share. The outstanding out-of-money warrants may place a lid on MNMD’s share price in the short-term, at least until it trades enough volume to recycle the shares of likely sellers.

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