Ryan Cohen he became a face for the movement Bed Bath & Beyond (NASDAQ: BBBY) shares, first announcing a 9.8% stake in the retailer. The new filings later revealed that Cohen owned an 11.8 percent stake in Bed Bath that included stock and options.
On Thursday, it was revealed that Cohen sold his entire position in the embattled retailer. Cohen’s profit on the retailer’s stake was $68.1 million in seven to eight months.
Compare it with Jake Freeman, the 20-year-old college student who reportedly raised $100 million in less than two months trading shares of Bed Bath & Beyond. Freeman bought 4.69 million shares of the retailer in July at about $5.20 a share, along with his uncle, Dr. Scott Freeman.
This complemented their family fund Freeman Capital Management with a 6.21% passive stake in the meme stock.
“I didn’t know it was meme stock,” the University of Southern California student told Benzinga on Thursday.
“I approached it more from the math side — looking at the balance sheet and the intersection of the debt side, the equity. I in no way expected the stock to go up so quickly.”
The Bed Bath & Beyond Investor’s Plan: In a July 21 letter to Bed Bath & Beyond, the younger Freeman outlined Freeman Capital’s plan to realign the retailer, which consisted of two critical strands: reducing debt and raising capital.
Fast forward just four weeks later, combined with a carefully orchestrated short squeeze by Reddit’s WallStreetBets community known as the “Apes,” Bed Bath shares soared to a high of $28.60 on Tuesday — the same day that Freeman Capital exited its entire stake in the company.
Curiously, on the same day, Cohen, who currently serves as GameStop Corp. (NYSE: GME) President, and initially sparked Bed Bath & Beyond’s fanfare with Apes, filed with the Capital Market Commission saying he intended to sell up to 9.45 million shares of the company as of that day.
Related Link: MindMed A New Minted Meme? College Student Who Made $100 Million in Bed Bath & Beyond Is Involved in Psychedelics Stock
The sale of the Freeman Family Fund was well-timed. It closed at more than $130 million after spending $25 million in initial investment, netting around $105-110 million, or between 420%-460%.
MindMed shares soar: Jake, who previously interned at Volaris Capital Management, is investing with his uncle Scott, who is the co-founder and former chief medical officer of Mind Medicine (MindMed) Inc (NASDAQ: MNMD). Shares of MindMed soared 77.4% from the previous day’s highs on Thursday after the Bed Bath & Beyond sale was revealed.
Read more: EXCLUSIVE: Food wholesaler talks crazy chicken and beef prices — ‘Fresh Meat Arbitrage’
Investors’ focus is now on MindMed, which was originally a private company, Scott co-founded Savant.
The Freemans have built a 5.6% stake in the company and sent a strategic value enhancement plan to MindMed, outlining the fund’s interest in working “hand-in-hand” to reduce development time for MindMed’s two lead drugs and reduce his annual cash. burning rate.
Analyzing the letter, which the younger Freeman confirmed to Benzinga, FCM is focusing on MindMed’s core drugs, reducing cash burn and ending MindMed’s equity offering.
“I’ve been developing drugs since I was in high school,” Scott said in an Aug. 16 interview with YouTube channel Psychedelic Invest.
“About 13 years ago I worked together Stephen Hurst and we started a company called Savant. It was a private company that worked on drugs to treat addiction.”
After MindMed acquired Savant, where he was previously CMO, Scott became the company’s first CMO. He left the organization about a year after arriving, making him the first senior member of the team to do so.
Benzinga asked the younger Freeman why Scott left the company. said he could not disclose the reason for Freeman’s departure due to a non-disclosure agreement.
“As a co-founder,” Scott said in the aforementioned interview. “I sit on the sidelines and watch and one of the reasons I want to come back is because I think there are things I think should be done differently.”
In the letter to MindMed, the couple calls for an overhaul of the company, including cutting 11 of its 22 employees. eliminating more than $21.8 million in non-core costs; and halving its cash burn rate over time.
It also calls for the immediate development of an FDA approach proposal to upgrade the MM-120 drug from a Phase 2 trial to a Phase 3 trial, which the Freemans say could bring the drug to market in four years instead of the expected seven up to eight years.
The aid plan also provides for a 50% reduction in executive compensation.
BBBY, MNMD Price Action: Shares of Bed Bath & Beyond fell 40.54% to $11.03 at the close on Friday. The stock fell an additional 12.15% to $9.69 in after-hours trading on Friday. Shares of MindMed traded down 16.92% near $0.85 on Friday and rose 4.44% in after-hours trading to $0.89.
Photo via Shutterstock.
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