MindMed A Newly Minted Meme? College Student Who Made $100M On Bed Bath & Beyond Is Involved In Psychedelics Stock
11:09 am ET August 18, 2022 (Benzinga) Print
A 20-year-old college student earned around $110 million after selling his stake in the troubled retailer Bed Bath & Beyond Inc (NASDAQ: BBBY) following the stock's recent rally of more than 339%, according to the Financial Times.
What happened: At a price of roughly $5.20 per share, investor Jake Freeman, a student of mathematics and economics at the University of Southern California, bought nearly 5 million shares of the company in July.
The $25-million stake was purchased through Freeman Capital Management (FCM), a fund registered in Wyoming, according to a Twitter thread exploring the SEC filings and articles of incorporation from the firm. The younger Freeman purchased the 6.2% stake with the help of family and friends, including Jake's uncle Dr. Scott Freeman, a former pharma executive who now works for FCM.
In addition, the elder Freeman co-founded Mind Medicine (NASDAQ: MNMD) and served as its first chief medical officer.
The younger Freeman sold the Bed Bath & Beyond stake on Tuesday when shares closed at a one-month high of $26.93.
Read more: Bed Bath & Beyond Analyst Says Pullback To $2 Likely, Trends At Retailer Remain 'Challenged'
Freeman remarked in the Financial Times story: “I certainly did not expect such a vicious rally upwards. I thought this was going to be a six months plus play — I was really shocked that it went up so fast.”
Why It Matters: The younger Freeman isn’t done yet. He and his uncle sent a scathing letter to the board of directors at MindMed — reminiscent of Ryan Cohen sending a letter to the Bed Bath & Beyond board of directors in March — calling for the board to accept a new strategy put forth by FCM that focuses on the company's core medications, reduces cash consumption and ends an at-the-money equity offering.
Dr. Freeman also offered to join the psychedelics company's board of directors in the letter. Shares of MindMed jumped 58% after the news broke Thursday.
Bed Bath & Beyond shares dropped on Wednesday, ending the day at $23.08. RC Ventures, Cohen's VC fund, announced its intention to sell 9.45 million shares and options via JPMorgan Securities.
Photo via Shutterstock.
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