MindMed Board is Trippin': Significant Investor Calls for Termination of Highly Dilutive Equity Offering and Pledges to Hold Board and Management Accountable through Activist Campaign

Rhea-AI Summary

FCM MM Holdings opposes MindMed's recent public offering due to concerns over shareholder value destruction. In a letter to the Board, FCM calls for the immediate termination of the dilutive offering announced on September 27, 2022. FCM, representing 6.1% of MindMed's shares, emphasizes its commitment to safeguarding shareholder interests, indicating potential activist actions against the Board's management. FCM's Chief Executive Manager, Jake Freeman, pledged to engage in a proxy campaign to hold the Board accountable for its decisions.

Positive

• FCM represents 6.1% of MindMed's outstanding shares, indicating significant investment interest.
• FCM's commitment to protecting shareholder interests could lead to enhanced accountability within the Board.

Negative

• The public offering is deemed highly dilutive, which could significantly reduce existing shareholder value.
• FCM's opposition signals potential instability in the company's governance and management credibility.

Investors States Shareholder Requisition of Special Meeting to Effect Significant Change to the Board May be Necessary

SHERIDAN, Wyo., Sept. 28, 2022 /PRNewswire/ -- Today, FCM MM HOLDINGS, LLC ("FCM") announces that it has sent a letter (the "Letter") to the Board of Directors (the "Board") of Mind Medicine (MindMed) Inc. (NASDAQ: MNMD) ("MindMed" or the "Company") informing the Board of FCM's vehement opposition to the Company's public offering announced on September 27, 2022 (the "Dilutive Offering"). In the Letter, FCM details how the Board's and management's actions, including the Dilutive Offering, have destroyed shareholder value, calls for the Board to immediately terminate the offering, and pledges to take action to hold the Board accountable.

"We are committed to taking whatever actions are necessary to protect the interest of shareholders" 

"We are committed to taking whatever actions are necessary to protect the interest of shareholders, and we look forward to engaging in a zealous proxy campaign" said FCM Chief Executive Manager Jake Freeman.

The full text of the letter is available and can be downloaded at mindmed.zone/letterdilution

About FCM

FCM is managed by Jake Freeman and represents an investment of 6.1% of MindMed's shares outstanding.

FCM additionally represents other early investors in MindMed, including Scott Freeman and Chad Boulanger, who all have a strong interest in seeing the long-term success of MindMed.

For additional disclosure relating to public broadcast solicitations please see mindmed.zone/disclosure

Media Contact
Jake Freeman
Chief Executive Manager
FCM MM HOLDINGS, LLC
30 N Gould St. Ste R
Sheridan, WY 82801
Phone: 908-308-2381
Email: jake@mindmed.zone

View original content:https://www.prnewswire.com/news-releases/mindmed-board-is-trippin-significant-investor-calls-for-termination-of-highly-dilutive-equity-offering-and-pledges-to-hold-board-and-management-accountable-through-activist-campaign-301636059.html

SOURCE FCM MM Holdings, LLC

FAQ

What is the significance of FCM's opposition to MindMed's public offering announced on September 27, 2022?

FCM's opposition highlights concerns over shareholder value destruction due to the dilutive nature of the offering, prompting a call for accountability from the Board.

What percentage of MindMed's shares does FCM represent?

FCM represents 6.1% of MindMed's shares outstanding.

Who is leading the activist campaign against MindMed's Board?

Jake Freeman, Chief Executive Manager of FCM, is leading the activist campaign against MindMed's Board.

What actions is FCM considering in response to MindMed's Board decisions?

FCM is considering a proxy campaign to hold the Board accountable for its management decisions affecting shareholder value.