Is Mind Medicine (MNMD) Stock a Better Investment For 2021?
3:54 pm Wednesday, July 07th, 2021
The psychedelics-based medicine industry has garnered considerable interest in recent times and one of the companies which remains one of the biggest operators in that space is Mind Medicine (NASDAQ:MNMD). It goes without saying that there is a fair degree of interest in the nascent industry but at the same time experts believe that any investment in the MindMed stock amounts to speculation at this point in time.
The simple reason for that is the fact that the company is using products like LSD and psilocybin in order to create its medicines. However, this is a very new industry and it is difficult to foresee where this industry might be going.
If things fall into place, then the stock might generate handsome returns but if the company fails to deliver then it might not be the best experience for investors.
At this point in time, the company is involved in four different projects and it might be a good move for investors to follow the news with regards to those projects. On the other hand, at this point, the company has a cash balance of $160 million, which it is going to use for funding the development of its different projects. MindMed raised the money by offering its shares.
That is not a very uncommon way of raising capital and it’s nothing particularly remarkable in any way for an emerging company. However, it is clear to see that it will take some time before the projects take shape and hence, any speculative bet on MindMed is unlikely to bear fruit quickly.
