EXCLUSIVE: Meet The 20 Year Old Who Made More On BBBY Stock Than Ryan Cohen

Zinger Key Points
  • “I wasn’t that aware it was a meme stock,” Jake Freeman told Benzinga.
  • Investor focus now, however, is on MindMed, which was co-Founded by Jake's uncle.
EXCLUSIVE: Meet The 20 Year Old Who Made More On BBBY Stock Than Ryan Cohen

Ryan Cohen became a figurehead for the movement in Bed Bath & Beyond BBBY shares, first announcing a stake of 9.8% in the retailer. New filings later revealed Cohen owned an 11.8% stake in Bed Bath that included stock and options.
On Thursday, it was revealed that Cohen sold his entire position in the struggling retailer. Cohen’s profit on the stake in the retailer was $68.1 million in seven to eight months time.
Compare that to Jake Freeman, the 20-year-old college student who reportedly banked $100 million in less than two months trading Bed Bath & Beyond stock. Freeman purchased 4.69 million shares of the retailer in July at roughly $5.20 per share, along with his uncle, Dr. Scott Freeman.

That netted their Freeman Capital Management family fund a 6.21% passive stake in the meme stock.

“I wasn’t that aware it was a meme stock,” the University of Southern California student told Benzinga on Thursday.

“I approached it more from a mathematical side — looking at the balance sheet and the intersection of the debt side, the equity. I did not expect in any way the stock going up so fast.”

The Bed Bath & Beyond Investor's Plan: In a July 21 letter to Bed Bath & Beyond, the younger Freeman outlined Freeman Capital’s plan for the realignment of the retailer, which consisted of two crucial legs: cutting debt and raising capital.

Fast forward just four weeks later, coupled with a carefully orchestrated short squeeze by Reddit's WallStreetBets community known as the "Apes," shares of Bed Bath rocketed to $28.60 at the highs on Tuesday — the same day Freeman Capital exited its entire stake in the company.

Curiously, on the same day, Cohen, who currently serves as the GameStop Corp. GME Chairman, and initially sparked the Bed Bath & Beyond fanfare with the Apes, filed with the SEC saying he intended to sell as many as 9.45 million shares of the company beginning that day.

Related Link: MindMed A Newly Minted Meme? College Student Who Made $100M On Bed Bath & Beyond Is Involved In Psychedelics Stock

The Freeman Family Fund's sale was well-timed. It closed at more than $130 million after spending $25 million in the initial investment, netting around $105-$110 million, or between 420%-460%.

MindMed Shares Skyrocket: Jake, who previously interned at Volaris Capital Management invests with his uncle Scott, who is the co-founder and former chief medical officer of Mind Medicine (MindMed) Inc MNMD. MindMed shares rocketed 77.4% from the previous day's highs on Thursday after the Bed Bath & Beyond sale was disclosed.

Read more: EXCLUSIVE: Food Wholesaler Talks Crazy Chicken And Beef Prices — 'Fresh Meat Arbitrage'

The investor focus is now on MindMed, which was originally a privately owned company, Savant, co-founded Scott.

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 cut the development time of MindMed's two original drugs and slash its annual cash-burn rate.

Analyzing the letter, which the younger Freeman confirmed to Benzinga, FCM is focusing on MindMed's core drugs, cutting cash burn and terminating MindMed's at-the-money equity offering.

“I’ve been in drug development since I was in high school,” Scott said in an Aug. 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 working on drugs to treat addiction.”

After MindMed bought Savant, where he was previously CMO, Scott became the company's first CMO. He left the organization around a year after he arrived, making him 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 divulge the reason for Freeman’s departure due to a non-disclosure agreement. 

“As a co-founder,” Scott said in the aforementioned interview. “I’ve been sitting on the sidelines watching, and one of the reasons why 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 an overhaul of the company, including cutting 11 of its 22 employees; the elimination of more than $21.8 million in non-core expenditures; and half of its 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 expected seven to eight years.

The enhancement plan calls for a 50% reduction in executive compensation as well.

BBBY, MNMD Price Action: Bed Bath & Beyond shares were down 40.54% at $11.03 Friday's close. The stock fell an additional 12.15% to $9.69 during Friday's after hours session. MindMed shares fell 16.92% at Friday's close to $0.85, and climed 4.44% during the after hours session to $0.89.

Photo via Shutterstock. 

Posted In: Dr. Scott FreemanICYMIJake FreemanRyan CohenBiotechNewsPenny StocksSmall CapTop StoriesMarket-Moving ExclusivesExclusivesMarketsMoversMediaTrading IdeasInterviewGeneral

Pressure Biosciences Secures Partnership With Dr. Denese SkinScience, A 20-Year Leader In Cosmeceuticals With Over $500 Million In Sales

Pressure Biosciences Secures Partnership With Dr. Denese SkinScience, A 20-Year Leader In Cosmeceuticals With Over $500 Million In Sales

Pressure BioSciences Inc. PBIO, a leader in the development and sale of broadly enabling, pressure-based instruments, consumables and specialty-testing services to the worldwide cosmetics, nutraceuticals, biotherapeutics and food/beverage industries, today announced the company will team up with science-driven skin-care industry leader Dr. Adrienne Denese, the creator and president of Dr. Denese SkinScience® — one of the most successful, highly rated, award-winning and longest-lasting skin care lines in the history of Quality Value Convenience (QVC). 

Under the two-year collaborative research and development agreement between Pressure BioSciences and Dr. Denese SkinScience, the two companies will decide on specific skin care projects to pursue. Statements of work will be developed, with approved budgets, timetables and remuneration formulas for both companies. 

Completed Work

Pressure BioSciences (PBI) and Dr. Denese have already agreed to focus on the use of PBI’s unique Ultra Shear Technology™ (UST) nano emulsification platform to enhance existing and develop new skin care products for Dr. Denese SkinScience. The UST platform’s proven ability to process oil-based active ingredients such as retinol, vitamins and antioxidants into effective water-soluble formulations is expected to offer more effective absorption, bioavailability and therapeutic benefits to users of Dr. Denese SkinScience existing quality-leading skin care products. 

Comments From Executives

Denese said, “Having achieved over $560 million in QVC sales over a 20-year period, I am very proud of our company’s track record, my team and the very loyal customer base that we have built under the Dr. Denese SkinScience brand. My mission has always been to develop and deliver the highest-quality skin care products with life-changing effectiveness. Therefore, I could not be more excited at the prospect of teaming up with PBI and putting their UST platform’s remarkable breakthrough in nanoemulsion effectiveness to work, in new generations of skin care products.  

“I believe our partnership offers the opportunity to make new category-changing products that I have dreamed about to enhance selected existing products and to take these revolutionary new products to much greater heights and to many new customers through our existing QVC, e-commerce and Amazon.com Inc. AMZN channels as well as through our new Costco Wholesale Corp. COST affiliation.” 

PBI President and CEO Richard T. Schumacher observed, “From 2019 to 2021, Dr. Denese averaged close to $20 million per year in total sales. In 2022, with help from new channel partner Costco, sales are expected to increase significantly. The launch of a new generation of products processed by PBI’s patented UST platform, for the first time ever in the cosmeceuticals area, is planned for 2023, which we expect to result in a very fulfilling and exciting year for Dr. Denese and her very loyal customers — and for PBI!”

Schumacher concluded, “Although final determination of the order of development of these new and enhanced products is yet to be announced, both Dr. Denese SkinScience and PBI understand that these are potential game-changers in an industry whose 2021 global market size was estimated to be over $130 billion. We look at this partnership as an opportunity for multimillion-dollar accretive revenue growth for both companies over the next two years, with the potential to dramatically enhance the growth trajectory and profitability of both Dr. Denese SkinScience and PBI for years to come.”

About Pressure Biosciences

Pressure BioSciences Inc. is a leader in the development and sale of innovative, broadly enabling, pressure-based solutions for life sciences and other industries worldwide. Its products are based on the unique properties of both constant and alternating hydrostatic pressure. 

Pressure cycling technology (PCT) is a patented, enabling technology platform that uses alternating cycles of hydrostatic pressure between ambient and ultra-high levels to control bio-molecular interactions safely and reproducibly. Its primary focus is on the development of PCT-based products for biomarker and target discovery, drug design and development, biotherapeutics characterization and quality control, soil and plant biology, forensics and counter-bioterror applications. 

Additionally, major new market opportunities have reportedly emerged in the use of their pressure-based technologies in two major areas. The first is the use of its recently acquired, patented technology from BaroFold Inc. to allow entry into the bio-pharma contract services sector. The second is the use of its recently patented, scalable, high-efficiency, pressure-based Ultra Shear Technology (UST) platform. The latter allows users to create stable nanoemulsions of otherwise immiscible fluids such as oils and water and to prepare higher-quality, homogenized, extended shelf life or room temperature-stable low-acid liquid foods that cannot be effectively preserved using existing nonthermal technologies.

For more on Pressure Biosciences, click here

Photo by Kier in Sight on Unsplash

This post contains sponsored advertising content. This content is for informational purposes only and is not intended to be investing advice.

Posted In: North EquitiesPartner ContentBiotechNewsPenny StocksGeneral