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TORONTO - Quantum (NASDAQ:QMCO) BioPharma Ltd. (NASDAQ: QNTM), a biopharmaceutical company with a market capitalization of $16.86 million, announced that Celly Nutrition Corporation, the creator of the beverage unbuzzdTM, has taken steps towards an initial public offering (IPO) on a major U.S. exchange. According to InvestingPro analysis, Quantum BioPharma’s stock is currently trading above its Fair Value. Celly Nutrition has engaged a New York investment bank to raise up to $10 million USD in capital, contingent on regulatory approvals.
Celly Nutrition, which has Quantum BioPharma as a significant shareholder with a 25.71% stake, has signed a Letter of Engagement with the investment bank to advise on the IPO process and act as the exclusive managing underwriter for a proposed public offering of common stock. Quantum BioPharma’s stock has shown remarkable momentum, with InvestingPro data showing a 184% return in the past week alone.
John Duffy, CEO of Celly Nutrition, expressed that the capital raise is a crucial milestone for the company, which aims to enhance marketing efforts and distribution of unbuzzd, their product designed to mitigate hangover symptoms. Duffy, with extensive experience in the beverage industry, including former executive roles at Coca-Cola (NYSE:KO), sees this move as a way to meet the growing demand for unbuzzd.
Gerry David, Celly’s Board Co-Chair and former CEO of Celsius Holdings (NASDAQ:CELH), expressed confidence in the partnership with the investment bank, highlighting the potential for retail investors to engage with Celly Nutrition’s growth.
Quantum BioPharma, apart from its stake in Celly Nutrition, is focused on developing treatments for neurodegenerative and metabolic disorders, including a patented compound for multiple sclerosis. The company will receive royalty payments from Celly Nutrition’s sales of unbuzzd, with a 7% royalty until a total of $250 million is paid, after which the royalty decreases to 3%. InvestingPro data reveals the company maintains a healthy financial position with a current ratio of 3.76, indicating strong liquidity to support its operations. Analysts expect the company to achieve profitability this year, with 12 additional InvestingPro Tips available for subscribers.
This announcement is based on a press release statement from Quantum BioPharma Ltd.
In other recent news, Quantum BioPharma Ltd. has made notable strides in expanding its global reach and advancing its drug trials. The biopharmaceutical company recently began trading on Upstream, a global securities trading app, in a dual listing move aimed at engaging with a broader global investor base. This development, however, restricts U.S. persons from depositing, buying, or selling securities on Upstream.
On the clinical front, Quantum BioPharma is progressing with the second cohort dosing phase of its Lucid-21-302 drug trial, following a favorable review of initial participant data. This trial is part of the company’s focus on developing treatments for neurodegenerative and metabolic disorders, as well as alcohol misuse disorders.
In addition, Quantum BioPharma has announced plans for a non-brokered private placement of convertible debenture units to raise capital for business development and general working capital purposes. This offering involves up to 5,000 debenture units priced at $1,000 each.
These recent developments underscore Quantum BioPharma’s ongoing efforts to build shareholder value, enhance liquidity, and advance its drug candidates. It’s worth noting that these updates are based on press releases from Quantum BioPharma and are intended for informational purposes only.
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