Mind Medicine (MindMed) Inc. (NEO: MMED)(OTC: MMEDF) made history recently, marking a turning point in the for-profit psychedelic industry, and the prohibition of these substances as a whole. MindMed is the first strictly psychedelic focused pharmaceutical firm to go public (Yield Growth Corp (ticker - TSX: BOSS) is also a publicly traded psychedelic-adjacent corporation which owns a subsidiary company with a focus similar to that of MindMed). Their stock is now trading on the NEO Exchange under the ticker symbol “NEO: MMED" and was up 22% after the first day of trading.
NEO’s website describes itself as “a progressive stock market that brings together investors and capital raisers within a fair and transparent environment. The NEO Exchange lists senior companies and investment products who want a stock exchange that enables investor trust, quality liquidity and broad awareness, including unfettered access to market data.”
“Today, MindMed sits at the tipping point of doing things differently by realizing the untapped potential of psychedelics-derived medicine to find treatments to neurological disorders. As a stock exchange, we also do things differently by always putting the best interest of investors and capital-raising companies first in everything we do,” said NEO President and CEO Jos Schmitt.
“We are honoured to be MindMed’s global go-public partner. Their decision to list with us is a testament to our values and innovation that deliver tangible solutions and results. MindMed’s listing on NEO will enable their ability to access investor interest around the world.”
Prior to going public, MindMed recently completed a pre IPO financing round, which added another USD $24.2 million to the company’s bankroll. MindMed has already been endorsed and funded by numerous high profile investors including Kevin O’Leary, known for his appearance on ABC’s "Shark Tank" and Bruce Linton - the founder and former CEO of Canopy Growth (TSX: WEED). Linton also currently sits as a director on MindMed’s board.
“Psychedelics have been under-researched and stigmatized by society. As an investor, I am attracted to MindMed because they are solving health problems through federally-authorized clinical trials, and have no interest in recreational use,” stated O’Leary.
MindMed is developing psychedelic derived medicines aimed at targeting many psychological conditions, including addiction, depression and PTSD. The company has established a division dedicated to exploring the science surrounding psychedelics and has approval from the FDA to pursue clinical trials evaluating the safety and efficacy of these substances at a variety of dosages.
JR Rahn, MindMed’s Co-Founder and Co-CEO issued the following statement regarding the company’s momentous IPO:
“Today marks a significant step forward in our ability to access further institutional capital to fund our ground-breaking clinical trials and mission to build the most compelling pipeline of psychedelic inspired medicines. NEO provided a clear, efficient path to go public on their institutional-grade main-board stock exchange. Psychedelic medicines present an opportunity to address large societal problems, like the opioid crisis, and a public listing of MindMed could help accelerate the path to a cure.”
JR Rahn is a former Silicon Valley tech executive who saw the vast potential offered by psychedelic medicines in treating mental illness and addiction. After spending two years researching the subject, Rahn began investing in psychedelic research through his investment company, eventually leading to his partnership with drug development veteran Stephen Hurst. In 2019, Rahn and Hurst officially founded MindMed.
MindMed is currently preparing a Phase II FDA clinical trial on its ibogaine derived molecule 18-MC for opioid addiction. MindMed’s 18-MC is the company’s lead drug development program, which uses a non-hallucinogenic version of the psychedelic compound ibogaine. Extensive preclinical research is consistent with the mountain of anecdotal evidence indicating ibogaine can help curb addictions.
The company is also preparing to conduct a Phase II clinical trial focused on adult ADHD using LSD micro-dosing, which it expects to begin later this year.
“We believe that hallucinogenic therapies have great merit and benefits for treating addiction. But, undergoing a ‘psychedelic trip’ might be a daunting proposition to some patients. We want patients to pick up these medicines from their local pharmacy with a prescription. We feel there is an immense opportunity to create next-gen versions of psychedelics for approval as FDA drugs,” said Rahn.
MMED Stock Price Action & Chart
Shares of MindMed’s NEO listed MMED stock officially closed its first day of trading at $0.405 per share, up 22.7% on the day. The company’s U.S. OTC Markets listed MMEDF shares closed the day, even at $0.23 per share. Investors should be aware that MindMed’s OTC listing is currently quoted on the Grey Market, so liquidity will likely be low until the company becomes listed on the OTCQB or OTCQX in the future.
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Jeff - Champignons Magique