Harborside Inc. Announces Filing Appeal in Tax Case

Harborside Inc. Announces Filing Appeal in Tax Case

TORONTO–(BUSINESS WIRE)–PRESS RELEASE--FSD Pharma Inc. has reported financial and operational results for the three and nine months ended Sept. 30, 2019. These filings are available for review on the company’s SEDAR profile at www.sedar.com.

These financial results are unaudited, are prepared in accordance with International Financial Reporting Standards (IFRS) and are reported in Canadian dollars.

“During the third quarter, we continued to advance our efforts to transform into a specialty, biotech pharmaceutical R&D company focused on developing over time a robust pipeline of FDA approved synthetic compounds targeting the endocannabinoid system of the human body to treat certain diseases of the central nervous system and autoimmune disorders of the skin, GI tract and the musculoskeletal system. The company intends to initiate Phase 1 first-in-human safety and tolerability trials for its lead candidate, PP 101 micro-PEA during 1Q20. In addition, the company accelerated set-up activities to commence medical cannabis sales in August from our Cobourg facility,” stated Raza Bokhari, MD, executive co-chairman and CEO.

Dr. Bokhari continued, “In Q3, the company also raised more than $4.5 million in additional capital at $20.10 per share, with no warrant overhang, through a private placement in which the management, founders and board members contributed in excess of $2.5 million. This capital raise at a premium has indeed increased the visibility of the company amongst institutional grade investors and is an important milestone achieved that is very helpful towards our effort to list on a major U.S. stock exchange.

“During the quarter, we entered into a letter of intent with World-Class Extractions with an aim to diversify our revenue stream. We also added former U.S. Congressman Stephen Buyer to our Board of Directors.

“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.”

Select Recent Operational Highlights:

  • On Nov. 4, the company closed a second tranche of its previously announced private placement. FSD Pharma has raised total gross proceeds of $4,596,285 under the private placement from investors, including members of senior management and the Board of Directors. The company closed the initial tranche under the private placement on Oct. 1, 2019. The net proceeds from the private placement will be used for the expansion of the company’s biosciences division, including the research and development of PP-101 (micro-palmitoylethanolamide, or micro-PEA, the company’s drug development candidate and for general corporate purposes including working capital, potential investments and acquisitions.
  • On Oct. 11, FSD Pharma appointed former U.S. Congressman Stephen Buyer to its Board of Directors to further strengthen the independence and profile of the Board, leverage his broad leadership experience and pharmaceutical industry relationships, and enhance the company’s visibility, especially among U.S. institutional investors and on Capitol Hill in Washington, D.C.
  • On Sept. 25, FSD Pharma signed a letter of intent to establish a collaboration with World-Class Extractions to develop, manage and operate a cannabis extraction and processing center at FSD Pharma’s facility in Cobourg, Ontario. This partnership provides the company with additional revenue opportunities from the processing of pharmaceutical-grade cannabis flower into high-quality oil-based products to meet the increasing demand for such products in the medicinal cannabis market.

Third Quarter 2019 Financial Results Summary (all comparisons are with the third quarter of 2018):

  • Revenue of $12,805 compared with $13,833. The company commenced medical cannabis sales in August 2019, generating nominal revenue during the third quarter of 2019. Revenue during the prior-year quarter was primarily from subleasing a portion of the Cobourg facility to unrelated third parties.
  • Operating loss of $12.9 million compared with an operating loss of $3.0 million, with the increase reflecting expenses incurred in the development of the business, the continued renovation and build-out of the Cobourg facility and ongoing operating expenses, among others.
  • 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 of 2019 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. The third quarter of 2018 included a $6.9 million gain on changes in fair value of other investments. The per-share figures reflect a 1-for-201 share consolidation completed in October 2019.
  • Cash used in operating activities during Q3 2019 amounted to $2.9 million vs. $2.1 million in Q3 2018.
  • Cash and cash equivalents of $7.3 million as of Sept. 30, 2019.
  • Non-cash assets of $62.8 million as of Sept. 30, 2019.

Published at Tue, 17 Dec 2019 22:09:00 +0000

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