MindMed taps out of Cboe

Citing low trading volume, Mind Medicine (MindMed) Inc. (NASDAQ: MNMD) (Cboe Canada: MMED) is voluntarily delisting its common shares from Cboe Canada, effective at the close of markets on April 10, 2024. MindMed said its common shares will continue to be listed and tradable on The Nasdaq Global Select Market under the symbol “MNMD” and Canadian shareholders can continue to trade their shares on Nasdaq.

MindMed said in a statement that the trading volume of its common shares on Cboe Canada no longer justified the expense and administrative requirements associated with maintaining this dual listing. “MindMed’s Nasdaq listing provides its shareholders with sufficient liquidity, as Nasdaq accounts for approximately 95% of its trading volume,” said the company. “The substantial savings in exchange fees, legal fees, and managerial time and effort to maintain a dual listing can be redirected to initiatives intended to generate shareholder value.”

The board of directors of the Company has approved the voluntary delisting and Cboe Canada does not require shareholder approval of the voluntary delisting of MindMed’s common shares.

While the company downplayed the delisting, in its annual report MindMed said,

Delisting could adversely affect our ability to raise additional capital through the public or private sale of equity securities, would significantly affect the ability of investors to trade our securities and would negatively affect the value and liquidity of our common shares. Delisting could also have other negative results, including the potential loss of confidence by employees, the loss of institutional investor interest and fewer business development opportunities.

In March, MindMed announced the pricing of an underwritten offering of 16,666,667 common shares at an offering price of $6.00 per common share. In addition, the company entered into share purchase agreements for a private placement of 12,500,000 common shares for $6.00 per common share. The proceeds from the underwritten offering and private placement were expected to be approximately $175 million.

As of December 31, 2023, the company had an accumulated deficit of $290.2 million. Management believes that it has sufficient working capital on hand to fund operations through at least the next twelve months.