Today, FCM MM HOLDINGS, LLC announced that it has sent a letter to the Board of Directors of Mind Medicine Inc. (NASDAQ: MNMD) 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.
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.