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QSAM Biosciences (OTCQB:QSAM) (QSAMD) plans to list its shares on Nasdaq and hold an initial holding of $12 million public offering to fund the development of its bone cancer therapy CycloSam.
The biotech, which is developing radiopharmaceutical therapies to treat metastatic bone cancer and osteosarcoma, plans to offer 1.7 million shares and accompanying warrants at an assumed price of $7 per share. Each warrant would be exercisable for one share at 125% of the public price.
It also intends to offer purchasers whose purchase would represent beneficial ownership of more than 4.99% of its outstanding common shares the option to purchase pre-funded warrants to purchase common shares, each pre-funded warrant being exercisable for one common share.
Underwriters would receive a 45-day option to purchase up to 257,000 shares and/or warrants to cover over-allotments. Think Equity acts as Lead Bookrunner.
QSAM, a development-stage company, reported a net loss of $12 million for 2021 with zero income from ongoing operations. The company ended the year with $1.5 million in cash, but its auditors have expressed doubts about its ability to continue without additional funding.
QSAM plans to use the proceeds from the IPO to fund CycloSam clinical trials and for general corporate purposes. The Company intends to begin phase 1 testing of CycloSam in Q1 or early Q2 2022.
QSAM has applied to list its shares on the Nasdaq under the symbol QSAM. Shares are currently traded over-the-counter. On March 10, the company performed a 1:40 reverse stock split to qualify for a Nasdaq listing. At the end of Monday, QSAM had a market cap of around $14 million.
In late February, QSAM announced that the U.S. Food and Drug Administration recognized CycloSam as a rare pediatric condition for the treatment of pediatric osteosarcoma.
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