DexCom earnings beat by $0.03, revenue topped estimates
TORONTO - Quantum BioPharma Ltd. (NASDAQ:QNTM), a $65.71 million market cap company whose stock has declined nearly 40% in the past week, announced Friday it is completing a non-brokered private placement of class A multiple voting shares at $50 per share, raising gross proceeds of up to $600.
The biopharmaceutical company expects existing holders of multiple voting shares to subscribe for the entire offering. Securities issued will be subject to a statutory four-month hold period plus one day, in accordance with Canadian securities laws.
The company plans to use proceeds for general working capital purposes.
According to the announcement, the offering is anticipated to be fully subscribed by Xorax Family Trust, a trust benefiting CEO and Co-Chairman Zeeshan Saeed, and Fortius Research and Trading Corp., a corporation where company director Anthony Durkacz serves as director.
This insider participation constitutes a related-party transaction under Multilateral Instrument 61-101. Quantum BioPharma has relied on exemptions from formal valuation and minority shareholder approval requirements, as the transaction value involving related parties did not exceed 25% of the company’s market capitalization.
Quantum BioPharma focuses on developing treatments for neurodegenerative and metabolic disorders through its subsidiary Lucid Psycheceuticals Inc. The company’s lead compound, Lucid-MS, is a patented chemical entity designed to prevent and reverse myelin degradation, the mechanism underlying multiple sclerosis.
The company also maintains investments through its subsidiary FSD Strategic Investments Inc. and holds a 20.11% ownership stake in Unbuzzd Wellness Inc.
The information in this article is based on a press release statement from Quantum BioPharma.
In other recent news, Unbuzzd Wellness Inc. has engaged MZ Digital and Dealmaker to raise up to $5 million through a Regulation D 506(c) offering. The funds will support Unbuzzd’s expansion plans and position the company for a potential initial public offering, as stated by CEO John Duffy and Board Co-Chair Gerry David. Quantum BioPharma Ltd., which holds a 20.11% stake in Unbuzzd, has announced a joint study with Massachusetts General Hospital to validate a novel PET imaging technique for monitoring multiple sclerosis. This study could potentially aid in the development of Quantum’s investigational MS treatment, Lucid-21-302 (Lucid-MS).
Additionally, Quantum BioPharma plans to issue a special dividend of Contingent Value Rights tied to ongoing litigation against several financial institutions. The company is also preparing for a potential initial public offering by engaging MNP LLP for financial audits, following the resignation of their previous auditor, Stern & Lovrics LLP. Meanwhile, Unbuzzd Wellness has retained a New York investment bank to explore capital raising and IPO opportunities, with MNP conducting PCAOB audits. Quantum BioPharma clarified recent misinformation, confirming no reverse takeover with Unbuzzd Wellness is underway, and highlighted its financial interests and royalty arrangements with the company.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.