MindMed Co-Founder Dr. Scott Freeman Proposes Value Enhancement Plan

Rhea-AI Summary

On August 11, 2022, FCM MM Holdings, LLC, led by co-founder Dr. Scott Freeman, urged Mind Medicine (NASDAQ:MNMD) to adopt a new strategic plan. The proposals include a focus on core drugs MM-110 (18-MC) and MM-120 (LSD), reducing annual cash burn from $45 million to under $25 million, and halting the at-the-money equity offering. FCM believes these changes could expedite MM-120's market entry from eight years to four. With 5.6% of MindMed's shares, FCM is committed to enhancing shareholder value.

Positive

• FCM proposes to reduce annual cash burn from $45 million to under $25 million.
• Potential acceleration of MM-120's market entry from seven years to four by re-classifying its study.

Negative

• FCM criticizes management for underperformance in operational and financial aspects.

SHERIDAN, Wyo., Aug. 11, 2022 /PRNewswire/ -- Today, FCM MM HOLDINGS, LLC ("FCM") announced that it has sent a letter to the Board of Directors of Mind Medicine (MindMed) Inc. (NASDAQ:MNMD) (the "Company" or "MindMed") calling on the Board to adopt a new strategic plan proposed by FCM including: refocusing on its core drugs, cutting cash burn, and terminating MindMed's at-the-money equity offering. FCM is directed and managed Dr. Scott Freeman, co-founder and former Chief Medical Officer of MindMed, who has offered to provide MindMed his expertise as a director on MindMed's board.

As detailed in the letter, FCM believes MindMed has underperformed—operationally, financially, and strategically—as a direct result of management's lack of focus on its core drugs: MM-110 (18-MC) and MM-120 (LSD). FCM contends that MindMed can bring MM-120 to market in four years rather than seven to eight years, by re-classifying MindMed's Phase IIb study on MM-120 to a Phase III study. FCM also proposes that the Company reduce costs from forty-five million dollars per year to under twenty-five million dollars and that the unnecessary and dilutive at-the-money offering should be eliminated. By executing these proposals, FCM believes that MindMed can unlock significant long-term value for MindMed's shareholders.

FCM's large economic stake in MindMed reflects its convictions regarding MindMed's potential and gives it a strong interest in the success of MindMed.

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

About FCM
FCM is managed by Dr. Scott Freeman and represents an investment of 5.6% of MindMed's shares outstanding. Dr. Freeman's investment in MindMed is in excess of nineteen million shares or 4.51% of MindMed's outstanding shares. FCM's letter is additionally signed by Chad Boulanger. Chad Boulanger has an investment in over four million shares of MindMed or 1% of MindMed's outstanding shares.

FCM additionally represents other early investors in MindMed 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
Executive President
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-co-founder-dr-scott-freeman-proposes-value-enhancement-plan-301604278.html

SOURCE FCM MM Holdings, LLC

FAQ

What is FCM's proposal for MindMed (MNMD)?

FCM proposes a strategic plan focusing on core drugs, reducing cash burn, and terminating the at-the-money equity offering.

Who is leading the FCM proposal to MindMed?

The proposal is led by Dr. Scott Freeman, co-founder and former Chief Medical Officer of MindMed.

What financial changes does FCM suggest for MindMed?

FCM suggests reducing cash burn from $45 million to under $25 million annually.

How does FCM plan to expedite the MM-120 drug development?

FCM believes MM-120 can reach the market in four years instead of seven by reclassifying the Phase IIb study to Phase III.

What percentage of MindMed shares does FCM hold?

FCM holds 5.6% of MindMed's shares outstanding.