- MNMD has undergone a reverse stock split.
- MindMed stock should open around $11.87.
- Support is at $11.25.
Clinical stage biotech firm Mind Medicine (MNMD), also known as MindMed for short, will begin trading at its new reverse split-adjusted price on Monday. In an 8-K filed on Friday, the company known for using LSD to treat maladies like anxiety disorders, said it would offer shareholders one share for every 15 owned on Friday, August 26.
“The reverse share split is intended to enable the company to achieve several important corporate objectives, give the company greater flexibility in considering and planning for future potential business needs and to address the Nasdaq minimum bid price requirement”, MindMed said in its filing.
Mind Medicine stock had been trading below Nasdaq’s minimum requirement of $1 for much of the time since early April, so this will allow the company to comply with the exchange’s rules. A clear problem with the phrase “greater flexibility in considering and planning for future potential business needs” suggests that the company is looking to sell more shares without becoming a literal penny stock. MNMD stock closed down 5.1% on Friday at $0.7910, so that works out to an expected opening price on Monday of around $11.87.
Last week the company announced the start of the largest clinical trial of LSD ever conducted. The phase 2b trial will focus on determining dosing levels for its MM-120 drug used to treat General Anxiety Disorder.
MNMD stock traded as high as $1.33 on August 18 after Jake Freeman, the USC college student who made over $100 million trading Bed Bad & Beyond (BBBY) stock earlier this month, said he and his uncle were building a position in the stock. Since then it has buckled and fallen back earth.
MindMed stock forecast
MindMed stock has been discovering support around the 75 cent level. That price equates to $11.25 post-split, so traders will want to make sure MNMD does not break through that barrier when the regular session opens on Monday. The 21-day moving average can be found just below there, so this provides more reason to think that the support level could hold. The bull target at $1.20, the resistance level that held up fairly strongly in late August and in March, may be the focus, but most traders will wait to enter only when the price breaks above the 9-day moving average. That average is now at $0.82 ($12.30 post reverse split).
MNMD daily chart