Q BioMed Inc (OTCQB:QBIO), which has developed cancer bone pain drug Strontium89, announced Tuesday that it has launched a financial restructuring plan.
Under the plan, the company’s lead investor Yorkville Advisors Global (YA) will convert a minimum of $3.8 million into common stock and preferred stock and may convert an additional $500,000, which would be the total debt held by them.
And as part of the agreement, which has yet to close, YA will fund an additional $4 million in new capital over the next 2 weeks, Q BioMed said in a statement.
Q BioMed said the restructuring of the debt and new capital transforms its balance sheet to create significant positive shareholder equity - a requirement for a Nasdaq listing.
In addition, the company said the new capital injection will provide enough runway to implement its full commercial plan as it brings its US Food and Drug Administration-approved Strontium89 drug to market.
“In addition to the rollout of our Strontium89 drug, this funding allows us to advance other key pipeline assets such as our infectious disease platform including a potential treatment for COVID-19, influenza and others, liver cancer therapy Uttroside B and our rare disease drug development in non-verbal autism spectrum disorders,” said Q BioMed CEO Denis Corin.
Along with the revenue expected from Strontium89 sales and the significant non-dilutive grant funding available from the Mannin platform, Q BioMed said it does not anticipate needing more capital until the first quarter of 2021, if not well beyond.
Contact the author: [email protected]
Follow him on Twitter @PatrickMGraham