MindMed Announces Voluntary Delisting from Cboe Canada

Rhea-AI Summary

Mind Medicine (MindMed) Inc. (NASDAQ: MNMD) has decided to voluntarily delist its common shares from Cboe Canada to focus on its Nasdaq listing, citing cost savings and increased shareholder value as key reasons. The delisting will be effective on April 10, 2024, with trading continuing on Nasdaq, providing shareholders with ample liquidity.

Insights

Market Research Analyst

The decision by Mind Medicine (MindMed) Inc. to delist from Cboe Canada is a strategic move that reflects the company's evaluation of cost versus benefit in maintaining multiple listings. The concentration of trading volume on Nasdaq, which stands at about 95%, indicates that the liquidity provided by Nasdaq is more than adequate for the company's needs. This move can be seen as a cost-saving measure, as it eliminates the expenses related to a dual listing, which includes exchange fees, legal costs and administrative burdens.

From a market perspective, the reallocation of resources towards initiatives that could potentially enhance shareholder value is a positive step. It shows that the company is actively managing its operational expenses and prioritizing its financial strategy. This could be seen favorably by investors who often look for companies with prudent financial management. However, the impact on the stock price will likely be minimal, as the delisting doesn't affect the company's fundamentals or its presence on a major exchange like Nasdaq.

Financial Analyst

For current and prospective investors, the key takeaway from MindMed's delisting from Cboe Canada is the expected improvement in operational efficiency. By focusing on a single primary listing, the company can streamline its reporting and compliance processes, potentially resulting in better allocation of management's time and company resources. The savings from reduced listing fees and other associated costs can be redirected towards research and development, which is critical for a clinical stage biopharmaceutical company.

Investors should monitor how these savings are invested back into the company's core business activities, such as advancing clinical trials or expanding its product pipeline. The long-term value creation from these investments could outweigh any short-term inconveniences faced by Canadian shareholders. It's important to note that the company's continued status as a reporting issuer in Canada ensures that Canadian securities laws and protections remain in place for investors.

Securities Compliance Expert

MindMed's voluntary delisting from Cboe Canada while maintaining its Nasdaq listing is compliant with the Cboe Canada Listing Manual, which does not require shareholder approval given the existence of an alternative market. This compliance with regulatory standards is essential for maintaining investor confidence. The company's assertion that most Canadian brokers can trade securities listed on Nasdaq suggests that the delisting should not significantly impact Canadian shareholders' ability to trade MindMed's common shares.

However, shareholders should be proactive in ensuring their brokerage accounts are equipped to handle trades on Nasdaq. It is also essential for MindMed to maintain transparent communication with its shareholders throughout this transition to mitigate any potential confusion or concern. The continued reporting under Canadian securities laws indicates a commitment to transparency and regulatory adherence, which is reassuring for stakeholders.

All Common shares will remain listed on Nasdaq

NEW YORK--(BUSINESS WIRE)-- Mind Medicine (MindMed) Inc. (NASDAQ: MNMD) (Cboe Canada: MMED) (the “Company” or “MindMed”), a clinical stage biopharmaceutical company developing novel product candidates to treat brain health disorders, today announced that it has elected to voluntarily delist its common shares from Cboe Canada, effective at the close of markets on April 10, 2024, and the notice of voluntary delisting has been accepted by Cboe Canada. MindMed’s common shares will continue to be listed and tradable on The Nasdaq Global Select Market (“Nasdaq”) under the symbol “MNMD” and Canadian shareholders can continue to trade their shares on Nasdaq.

The Company believes that the trading volume of its common shares on Cboe Canada no longer justifies 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. 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 from Cboe Canada. In accordance with the Cboe Canada Listing Manual, Cboe Canada does not require shareholder approval of the voluntary delisting of MindMed’s common shares, as an acceptable alternative market will exist for the common shares on the date of delisting.

Following delisting from Cboe Canada, MindMed’s shareholders can trade their common shares through their brokers on Nasdaq. As most brokers in Canada, including many discount and online brokers, have the ability to buy and sell securities listed on Nasdaq, MindMed’s Nasdaq listing will continue to provide shareholders with the same accessibility to trade the Company's common shares. Shareholders holding shares in Canadian brokerage accounts should contact their brokers to confirm how to trade MindMed’s common shares on Nasdaq. MindMed will continue to be a reporting issuer under applicable securities laws in all provinces and territories of Canada following the delisting of the common shares from Cboe Canada.

For answers to frequently asked questions about the voluntary delisting, please visit the FAQ section of MindMed’s website at https://ir.mindmed.co/about/faq.

About MindMed

MindMed is a clinical stage biopharmaceutical company developing novel product candidates to treat brain health disorders. Our mission is to be the global leader in the development and delivery of treatments that unlock new opportunities to improve patient outcomes. We are developing a pipeline of innovative product candidates, with and without acute perceptual effects, targeting neurotransmitter pathways that play key roles in brain health disorders.

MindMed trades on Nasdaq under the symbol MNMD and currently trades on Cboe Canada (formerly known as the NEO Exchange) under the symbol MMED.

Forward-Looking Statements

Certain statements in this news release related to the Company constitute "forward-looking information" within the meaning of applicable securities laws and are prospective in nature. Forward-looking information is not based on historical facts, but rather on current expectations and projections about future events and are therefore subject to risks and uncertainties which could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements. These statements generally can be identified by the use of forward-looking words such as "will", "may", "should", "could", "intend", "estimate", "plan", "anticipate", "expect", "believe", "potential" or "continue", or the negative thereof or similar variations. Forward-looking information contained in this news release include, but are not limited to, statements with respect to the timing of the delisting of the Company’s common shares from Cboe Canada, the Company’s anticipated benefits of delisting from Cboe Canada, such as improved liquidity for the common shares, the accessibility of and ability of shareholders to trade the Company's common shares on Nasdaq, and the anticipated continued listing of the Company's common shares on Nasdaq. There are numerous risks and uncertainties that could cause actual timing and the Company’s plans and objectives to differ materially from those expressed in the forward-looking information. These forward-looking statements are based on our current expectations, estimates, forecasts and projections about our business and the industry in which we operate and management’s beliefs and assumptions, including the non-occurrence of the risks and uncertainties that are described in the filings made with the U.S. Securities and Exchange Commission and the applicable Canadian securities regulators or other events occurring outside of our normal course of business, and are not guarantees of future performance or development and involve known and unknown risks, uncertainties and other factors that are in some cases beyond our control. Except as required by law, the Company undertakes no duty or obligation to update any forward-looking statements contained in this release as a result of new information, future events, changes in expectations or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240401420705/en/

For Media: media@mindmed.co

For investors: ir@mindmed.co

Source: MindMed

FAQ

Why is MindMed delisting its common shares from Cboe Canada?

MindMed is delisting its common shares from Cboe Canada to focus on its Nasdaq listing, as the trading volume on Cboe Canada no longer justifies the expenses associated with the dual listing.

When will the delisting of MindMed's common shares from Cboe Canada be effective?

The delisting of MindMed's common shares from Cboe Canada will be effective at the close of markets on April 10, 2024.

Will MindMed's common shares still be tradable after delisting from Cboe Canada?

Yes, MindMed's common shares will remain listed and tradable on The Nasdaq Global Select Market under the symbol 'MNMD'. Canadian shareholders can continue to trade their shares on Nasdaq.

What benefits does MindMed expect from delisting its common shares from Cboe Canada?

MindMed anticipates substantial savings in exchange fees, legal fees, and managerial time and effort, which can be redirected to initiatives aimed at generating shareholder value.

Do shareholders need to approve the voluntary delisting of MindMed's common shares from Cboe Canada?

No, shareholder approval is not required for the voluntary delisting of MindMed's common shares from Cboe Canada, as an acceptable alternative market will exist on the date of delisting.