Clearmind Medicine (NASDAQ: CMND) stock should rise 3,000% today. This 30x increase in CMND stock is not due to FDA approval or anything like that. It has no bearing on the actual underlying business at all. This is a purely technical change in the share price. This is also a purely nominal change – it won’t make your wallet any bigger. There is a specific technical problem that needs to be solved. This plan and process will solve this one problem – but not all the others that are burdening the company.
As we’ve said before about Clearmind Medicine: “Clearmind is developing psychedelic drugs to treat various problems – for example, alcohol and cocaine addiction.” This latest idea is to use a version of their base psychedelics to treat depression. This has its merits – there’s a lot of colloquial talk about how they can actually help relieve at least some symptoms. So it’s not a strange idea. What’s really happening here is that the new and looser legal framework surrounding psychedelics is allowing proper research into their effects – namely the positive effects.” It’s a perfectly valid idea. But ideas also depend on their implementation, which seems to be missing here.
CLEAR HEAD
Clearmind Medicine stock price from Google Finance
As we also said about CMND stock, “We can and should use this as a lesson in how this part of capitalism is financed – with capital.” Clearmind is developing anti-alcohol treatments, and until the FDA actually approves something, pharmaceutical development is not of great value. Anything and everything in development is just a waste of money. It is also true that few to no loans take part in such a process. Everything has to be financed by shareholder capital. Therefore, companies in this area regularly raise more capital by issuing more shares. That’s how the industry works.”
So far they haven’t developed anything that works. Hence this share price. What is the problem to be solved? At some point they will need to raise more capital, which means they will need to stay listed on the Nasdaq. But penny stocks will eventually be jettisoned from the Nasdaq. The solution to this is to declare that 30 old shares are now one new stock – a 1-for-30 reverse stock split: “Clearmind Medicine Inc. (CMND) will conduct a 1-for-30 reverse stock split .” Common shares. The reverse stock split will be effective on TUESDAY, November 28, 2023.” The stock price reacts mechanically and increases by 3,000% or 30 times.
This solves the Nasdaq problem – at least for the moment. But it doesn’t solve the real business problem of developing something that works and therefore can be sold.
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