To date, the Ontario-based company says C$1.3 million in proceeds have been committed and received
Inc () (OTCMKTS:FSDDF) has launched a private placement to raise up to US$5 million, the medical cannabis company announced Friday.
The company will offer its class B subordinate voting shares at a price of C$0.10 per share without any warrant coverage. It expects to close the placement by September 30.
To date, C$1.3 million in proceeds have been committed and received, FSD Pharma said in a statement.
CEO Raza Bokhari has personally invested US$500,000 and the FSD Pharma leadership team, representing founders, directors and members of the senior management team, have collectively invested more than C$500,000.
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The net proceeds will be used for the expansion of the FSD Pharma’s biosciences division, including the research and development of PP-101 – the company’s preclinical drug candidate for the treatment of symptoms related to fibromyalgia.
In addition, the money will go toward general corporate purposes, including working capital, potential investments and acquisitions.
“The private placement to raise US$5 million from institutional investors, high net worth individuals and family offices in the United States, Canada and the rest of the world, will not only help us strengthen our balance sheet that carries no long term debt, but will also contribute immensely to our strategic goal to list on a major US exchange," CEO Bokhari said.
FSD Pharma also reported its second-quarter financial results in the statement.
For the quarter ended June 30, the company posted revenue of C$18,501, compared to C$29,372 in the prior-year quarter. It also ended the quarter with cash and cash equivalents of C$9.8 million.
FSD Pharma, based Cobourg, Ontario, is focused on the research and development of cannabinoid-based treatments for several central nervous system disorders including chronic pain, fibromyalgia, and irritable bowel syndrome. It also grows medical-grade cannabis at its 25,000 square foot facility in Ontario.
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