Debra Borchardt
Clearmind Medicine Inc. (NASDAQ: CMND) (CSE: CMND), closed its United States-only public offering raising approximately $2.25 million. The offering consisted of 7,500,000 common shares and pre-funded warrants and 7,500,000 common warrants. Clearmind said it plans to use the money for general corporate purposes, which may include operating expenses, research, and development, including clinical and pre-clinical testing of its product candidates, working capital, future acquisitions, and general capital expenditures.
The company noted in its offering that it had received a notification from NASDAQ that the shares had traded under a dollar and it had 180 days to get the share price back up. That deadline is November 13, 2023, however, the company could potentially ask for another 180-day extension. This offering though will further dilute shares and could potentially lower the price even further.
The company reported that at the end of 2022, it had $3.8 million in cash, but also warned investors that it was burning through cash and the company had a $14 million deficit. For the year ending in 2022, the company reported a net loss of $6.8 million.
Clearmind is a psychedelic pharmaceutical biotech company focused on the discovery and development of novel psychedelic-derived therapeutics to solve widespread and underserved health problems, including alcohol use disorder. Its primary objective is to research and develop psychedelic-based compounds and attempt to commercialize them as regulated medicines, foods or supplements.
Additional details stated that the common warrants are immediately exercisable, will expire five years from the date of issuance, and will have an exercise price of $0.30 (C$0.40) per common share. Each common share (or pre-funded warrant in lieu thereof) was sold together with one common warrant at a combined purchase price of $0.30 (C$0.40) per share (or $0.299 (C$0.399) per pre-funded warrant after reducing $0.001 (C$0.001) attributable to the exercise price of the pre-funded warrants) but were issued separately. The common warrants and pre-funded warrants are not listed on any exchange.
