Ryan Cohen became a figurehead of the movement Bed bath and beyond (NASDAQ: BBBY), first announcing a 9.8% stake in the retailer. Later, new filings revealed that Cohen owned an 11.8% stake in Bed Bath, which included stock and options.
On Thursday, it was revealed that Cohen had sold his entire stake in the struggling retailer. Cohen’s profit on the retailer’s stake was $68.1 million in seven to eight months.
Compare this with Jake Freeman, the 20-year-old college student who reportedly amassed $100 million in less than two months trading Bed Bath & Beyond stock. Freeman bought 4.69 million shares of the retailer in July for about $5.20 a share, along with his uncle, Dr. Scott Freeman.
This earned the Freeman Capital Management family fund a 6.21% passive interest in the meme’s shares.
“I didn’t know it was a meme action,” the University of Southern California student told Benzinga on Thursday.
“I approached it more on the mathematical side – looking at the balance sheet and the intersection of the debt side, equity. I did not at all expect the stock to go up so fast.”
The bed bath plan and beyond the investor: In a July 21 letter to Bed Bath & Beyond, the young Freeman described Freeman Capital’s plan for the retailer’s realignment, which consisted of two crucial steps: cutting debt and raising capital.
Advancing just four weeks later, coupled with a carefully orchestrated short squeeze by Reddit’s WallStreetBets community known as “Apes”, Bed Bath shares soared to $28.60 at highs on Tuesday – the same day that the Freeman Capital has exited all of its stake in the company.
Interestingly, on the same day, Cohen, who currently serves as GameStop Corp. (NYSE: GME) Chairman, and initially unleashed the Bed Bath & Beyond fanfare with the Apes, filed with the SEC saying it intended to sell up to 9.45 million shares of the company starting that day.
Related Link: MindMed A Newly Created Meme? College student who won $100 million in bed bath and beyond is involved in psychedelic lawsuits
The sale of the Freeman Family Fund was timely. It closed at over $130 million after spending $25 million on the initial investment, yielding around $105 to $110 million, or between 420% and 460%.
MindMed shares soar: Jake, who previously interned at Volaris Capital Management, invests with his uncle Scott, who is co-founder and former medical director of Mind Medicine (MindMed) Inc (NASDAQ: MNMD). MindMed shares soared 77.4% from previous-day highs on Thursday following the announcement of the sale of Bed Bath & Beyond.
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The investor’s focus is now on MindMed, which was originally a privately held company, Savant, co-founded by Scott.
The Freemans built a 5.6% stake in the company and submitted a strategic value enhancement plan to MindMed, outlining the fund’s interest in working “hand in hand” to reduce the development time of MindMed’s two parent drugs and reduce your annual cash. burn rate.
Looking at the letter, which the young Freeman confirmed to Benzinga, FCM is focusing on MindMed’s core drugs, reducing cash burn and ending the MindMed cash stock offering.
“I’ve been in drug development since I was in high school,” Scott said in an August 16 interview on the YouTube channel Psychedelic Invest.
“About 13 years ago I partnered with Stephen Hurst and we founded a company called Savant. It was a private company that worked with drugs to treat addiction.”
After MindMed purchased Savant, where he was previously CMO, Scott became the company’s first CMO. He left the organization about a year after arriving, becoming 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 disclose the reason for Freeman’s departure due to a confidentiality agreement.
“As a co-founder,” Scott said in the aforementioned interview. “I’ve been sitting on the sidelines watching it, 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 the letter to MindMed, the pair call for a redesign of the company, including cutting 11 of its 22 employees; the elimination of more than $21.8 million in non-essential expenses; and half your cash burn rate over time.
It also calls for the 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 the Freemans said could bring the drug to market in four years rather than the seven expected. to eight years.
The improvement plan also provides for a 50% reduction in executive compensation.
BBBY price action, MNMD: Bed Bath & Beyond shares fell 40.54% to $11.03 at Friday’s close. Shares fell another 12.15% to $9.69 during Friday’s after-hours session. MindMed shares fell 16.92% on Friday near $0.85, and rose 4.44% during the after-hours session to $0.89.
Photo via Shutterstock.
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