Clearmind Medicine Inc. (CMND): Securities Investigation
The White Law Group is investigating potential claims involving broker dealers who may have unsuitably recommended Clearmind Medicine Inc. to investors.
Background on Clearmind Medicine Inc.
Clearmind Medicine Inc. (NASDAQ: CMND), a clinical pharmaceutical company, develops novel psychedelic medicines to treat under-served health problems in Canada and internationally. The company was formerly known as Cyntar Ventures Inc. and changed its name to Clearmind Medicine Inc. in March 2021. Clearmind Medicine Inc. was incorporated in 2017 and is based in Vancouver, Canada. Source: https://finance.yahoo.com/quote/CMND/profile/
In November 2022, Clearmind Medicine Inc. offered shares of its common stock for sale to investors. As of February 28, 2024, the average post offering return was –99.2%. The company’s common stock was traded on the Nasdaq Capital Market, or NASDAQ, under the symbol “CMND.”
According to its prospectus, investing in CMND’s securities is highly speculative and involves a high degree of risk.
Latest News: Clearmind Medicine
As of August 6, 2024, according to a Globe Newswire article, Clearmind Medicine Inc. (Nasdaq: CMND), announced that a new article published by Baraghithy et al, revealed promising results from a recent study on 5-methoxy-2-aminoindane (MEAI) for combating obesity. The study was meticulously conducted by a team of experts led by Prof. Joseph Tam, head of the Obesity and Metabolism Laboratory at the School of Pharmacy in the Hebrew University of Jerusalem.
Performance: CMND
As of July 6, 2024, according to Market Watch shares of Clearmind Medicine, Inc. are down –90.23% over the last 12 months.
High Risk Pharmaceutical and Biotech investments
Regulatory Risks – Pharmaceutical companies are heavily regulated by agencies such as the FDA in the United States and the EMA in Europe. Approval processes for new drugs are lengthy and uncertain. Failure to get approval or delays in approval can severely impact a company’s stock price.
Research and Development (R&D) Risks – The pharmaceutical industry relies heavily on the successful development of new drugs. High R&D costs do not guarantee a successful outcome, and many drug candidates fail during clinical trials.
Market Competition – The pharmaceutical industry is highly competitive. Companies face competition from other pharmaceutical companies, as well as from generic drug manufacturers once patents expire. This can impact market share and profitability.
Patent Expiry – Pharmaceutical companies rely on patents to protect their products. When a patent expires, generic manufacturers can produce cheaper versions of the drug, leading to a significant drop in sales and revenue for the original manufacturer.
Unsuitable Investment Recommendations
Broker due diligence is a process undertaken by brokerage firms to ensure they are recommending and selling investment products appropriate for their clients. This process protects the interests of the brokerage firm and its clients by ensuring that the investments offered are suitable for the client’s investment objectives, risk tolerance, and financial situation.
If a broker or brokerage firm makes an unsuitable investment recommendation or fails to disclose the associated risks adequately, they may be found liable for investment losses in a FINRA arbitration claim. Fortunately, FINRA provides an arbitration forum for investors to resolve such disputes.
Class Action vs. Individual FINRA Arbitration Lawsuit
You may wonder whether a large class action lawsuit is a better litigation option than an individual FINRA arbitration case. The answer depends on many factors, but typically if the loss sustained is large (say larger than $100,000), an individual arbitration claim is likely a better option. Class actions as a recovery option are more appropriate for grouping large numbers of individuals who have small claims – too small to generally pursue individually.
Free Consultation
If you have suffered investment losses in Clearmind Medicine Inc., you may have recovery options. The securities attorneys at The White Law Group offer free consultations and can be reached at 1-888-637-5510.
About The White Law Group
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Seattle, Washington. The firm represents investors across the country in claims against their brokerage firms.
Last modified: August 8, 2024
