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Shares of small-cap stock Mind Medicine Inc (NASDAQ:MNMD) surged over 50% on Wednesday after traders noted the connection to Jake Freeman, the university student that reportedly made a $110 million windfall profit trading meme-stock Bed Bath & Beyond Inc (NASDAQ:BBBY).
In an interview with the FT, it was highlighted that Freeman is a 20-year-old mathematics and economics major at the University of Southern California. He bought 5 million shares of Bed Bath & Beyond in July with money raised from friends and family. Shares were purchased through an entity named FCM BBBY Holdings, LLC, which is controlled by Freeman Capital of Sheridan, Wyoming. Mr. Freeman is the managing member of the firm. The shares were purchased at under $5.50 per share, or about $25 million, and sold earlier this week for more than $130 million.
Freeman was shocked by the speed of the surge. “I certainly did not expect a vicious rally upwards,” Freeman was quoted as saying. He thought Bed Bath & Beyond would be a six-month-plus play.
Now the 20-year-old and his uncle, Dr. Scott Freeman, a former pharmaceutical executive, have built an activist stake in Mind Medicine, FT said.
Shares of Bed Bath & Beyond are down 29% intra-day Wednesday after it was disclosed that Ryan Cohen filed with the SEC to sell all of his 9.5 million shares.
Mind Medicine last traded up 51% to $1.14.
