ryan cohen became a chief for the movement in bed Bath and Beyond (NASDAQ:BBBY) shares, previously announced a 9.8% stake in the retailer. New filings later revealed that Cohen owned an 11.8% stake in Bed Bath which included stocks and options.
On Thursday, it was revealed that Cohen sold his entire position at the struggling retailer. Cohen’s profit on a stake in the retailer was $68.1 million over a period of seven to eight months.
Compare it Jake Freeman, a 20-year-old college student who reportedly banked $100 million in Bed Bath & Beyond stock in less than two months. Freeman bought 4.69 million shares of the retailer in July for about $5.20 per share, along with his uncle Dr. Scott Freeman.
This gave his Freeman Capital Management Family Fund a 6.21% passive stake in Mem stock.
“I didn’t know it was a meme stock,” the student at the University of Southern California told Benzinga on Thursday.
“I looked at it more from the mathematical side — the balance sheet and the debt side, looking at the intersection of equities. I didn’t expect the stock to go up so quickly by any means.”
Bed Bath & Beyond Investor Plan: 21 in july letter to bed bath and beyondThe younger Freeman outlined Freeman Capital’s plan to restructure the retailer, which included two important steps: debt reduction and capital raising.
Fast forward just four weeks later, with a carefully orchestrated short squeeze known as “apps” by Reddit’s WallStreetBets community, Bed Bath’s shares jumped as high as $28.60 on Tuesday — the same day Freeman Capital acquired the company. out of its entire stake in ,
Curiously, on the same day, Cohen, who currently serves as Gamestop Corp. (NYSE:GME) president, and initially lit up with apps Bed Bath & Beyond fanfare, SEC. filed with He said that he intends to sell 9.45 million shares of the company from that day.
The sale of the Freeman Family Fund was timely. It closed at over $130 million after spending $25 million in initial investments, roughly $105-$110 million, or between 420%-460%.
Mindmade shares skyrocketing: Jake, who previously interned at Volaris Capital Management, invests with his uncle Scott, the company’s co-founder and former chief medical officer. Mind Medicine (Mindmed) Inc. (NASDAQ:MNMD). Shares of MindMade jumped 77.4% on Thursday from the previous day’s high after the Bed Bath & Beyond sale was disclosed.
Investor focus is now on MindMade, which was originally a privately owned company Savant that Scott co-founded.
Freeman has held a 5.6% stake in the company and sent a strategic value addition plan to MindMed, underscoring the fund’s interest in working “hands-on” to cut development time for MindMed’s two core drugs and reduce its annual cash-burn rate.
Analyzing the letter, which Young Freeman confirmed to Benzinga, FCM is focusing on MindMed’s core drugs, cutting cash burn and eliminating MindMed’s at-the-money equity offering.
“I’ve been into drug development ever since I was in high school,” Scott Said in an Aug 16 interview On the YouTube channel Psychedelic Invest.
“About 13 years ago I partnered with Stephen Hurst And we established a company named Sawant. It was a private company dealing on drugs to treat addiction.”
Scott became the company’s first CMO after MindMade bought Sawant, where he had previously been CMO. He left the organization About a year after his arrival, he became the first senior member of the team to do so.
Benzinga asked the younger Freeman why Scott left the company; He said he could not explain the reason for Freeman’s departure because of a non-disclosure agreement.
“As a co-founder,” Scott said in the above interview. “I’m sitting on the sidelines and watching, and one of the reasons I want to go back is that I think there are things that I think need to be done differently.”
In a letter to MindMade, the pair called for an overhaul of the company, which includes cutting 11 of its 22 employees; Elimination of more than $21.8 million in non-core expenditures; and half of its cash burn rate over time.
It also calls for immediate development of a proposal to approach the FDA to upgrade its MM-120 drug from a phase 2 trial to a phase 3 trial, which Freeman said will take the drug in four years instead of the expected seven. can bring to market. for eight years.
The enhancement plan also calls for a 50% reduction in executive compensation.
BBBY, MNMD Price Action: Shares of Bed Bath & Beyond ended Friday’s closing price down 40.54% at $11.03. The stock fell an additional 12.15% to $9.69 during Friday’s after-hours session. Shares of MindMade fell 16.92% to $0.85 on Friday, and climbed 4.44% to $0.89 during the after-hours session.
Photo via Shutterstock.
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