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This Psychedelics Company Begins Trading On NASDAQ With $7.5M Offering Then Reverse Stock Split

Benzinga · 11/15/2022 15:22

Psychedelics biotech firm Clearmind Medicine Inc. (OTC:CMNDF) (NASDAQ:CMND) has announced the pricing of its underwritten public offering of 1,153,847 common shares at a public price of $6.50 per share, for aggregate gross proceeds of $7.5 million, to close on or about November 17, 2022

All shares within the offering cannot be sold, transferred, hypothecated or traded on or through facilities of Canadian securities exchange, in Canada, nor for the benefit of a Canadian resident until March 17, 2023. 

Importantly, the current pricing follows a 1-for-30 reverse stock split made effective on September 30, 2022, a financial move we have been seeing quite a lot of recently.

In direct connection with the offering, Clearmind’s common shares have been approved for listing on NASDAQ, and will begin trading in that capital market under the symbol “CMND” as of November 15, 2022.

In addition to the offering, Clearmind has granted Aegis Capital Corp., the sole book-running manager for the offering, a 45-day option to purchase up to 173,077 additional common shares, or 15% of the total shares sold in the offering solely to cover potential over-allotments. If Aegis exercises the option in full for common shares, the total gross proceeds of the offering are expected to be approximately $8.6 million. 

Additionally, Aegis will receive 57,692 underwriter warrants, each such warrant entitling the agents to receive one common share upon payment of $8.125 per share, exercisable six months after the start of sales of the offering and expiring on a date no farther than five years after that date.

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