“The company intends to initiate Phase 1 first-in-human safety and tolerability trials for its lead candidate, PP 101 micro-PEA during first quarter 2020,” he added.
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FSD Pharma to acquire US specialty R&D pharma company Prismic Pharmaceuticals for US$17.5M in stock
The company said that in the third quarter, it closed the second tranche of a previously announced placing, raising a total of nearly C$4.6 million gross and is planning to close a third tranche.
Net proceeds will be used for the expansion of the group's biosciences division, including the research and development of PP-101 (micro-palmitoylethanolamide [micro-PEA] plus pregabalin).
This is the firm's pre-clinical drug candidate for the treatment of symptoms related to fibromyalgia, a disorder characterized by widespread musculoskeletal pain accompanied by fatigue, sleep, memory and mood issues.
Bokhari also said that the capital raise at a premium had increased the visibility of the company among institutional investors and was an “important milestone” towards the company’s effort to list on a major US stock exchange.
“In addition, the company accelerated set-up activities to commence medical cannabis sales in August from our Cobourg facility,” said Bokhari.
“To date in the fourth quarter, we have generated $260,000 from the sale of medical cannabis, which represents a meaningful increase in our revenue from our core business. With more than $70 million in cash and non-cash assets, we believe we have reasonable financial means to advance the strategic objectives of FSD Pharma to transform into a specialty, biotech pharmaceutical R&D company,” he added.
For the third quarter ended September, FSD Pharma posted revenue of $12,805 compared to $13,833 in the same period a year earlier. The company explained that it started medical cannabis sales in August, generating nominal revenue during the third quarter.
“Revenue during the prior-year quarter was primarily from subleasing a portion of the Cobourg facility to unrelated third parties,” said the company.
The company said it had a net loss of $16.7 million or $2.20 per share, compared with net income of $3.9 million or $0.50 per diluted share. The third quarter included a $1.7 million loss on change in fair value of derivative liability and a $2.1 million loss on changes in fair value of other investments, said the company.
FSD Pharma had cash and equivalents of $7.3 million as of September 30, while most significantly, it had non-cash assets of $62.8 million.
FSD Pharma is focused on the research and development of cannabinoid-based treatments for several central nervous system disorders including fibromyalgia, and irritable bowel syndrome. It also grows medical-grade cannabis at its 25,000 square foot facility in Ontario.
Contact Uttara Choudhury at uttara@proactiveinvestors.com
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FULL DISCLOSURE: FSD Pharma Inc. is a client of Stockhouse Publishing.