Q BioMed Inc (OTCMKTS:QBIO) is a stock we have been watching closely over recent months because it’s an interesting story. The stock broke out of a range on Monday and we thought it was a good time to take another look.
While we can’t be sure of the catalyst for the move on Monday, recent headlines have been supportive. As we have noted in the past, the most important dimension of business for a company like this (small, early-stage, IP-driven biotech) is access to cash on good terms. Hence, it was important several days ago when the company announced that it has entered into a definitive agreement with Yorkville Advisors Global for up to $4,000,000 of convertible debentures. The company has already closed on the initial tranche of $1,500,000 and expects to close on the balance pending the effective registration of the underlying shares.
Q BioMed Inc (OTCMKTS:QBIO) bills itself as a biomedical acceleration and development company in the United States. The company focuses on licensing, acquiring, and providing resources to life sciences and healthcare companies. Its primary target indication is for a therapeutic eye-drop for the treatment of glaucoma in adults. The company’s lead candidate is MAN-01.
The company was formerly known as ISMO Tech Solutions, Inc. and changed its name to Q BioMed Inc. in July 2015. Q BioMed Inc. was founded in 2013 and is based in New York, New York. QBIO is a biomedical acceleration and development company. The Company is focused on licensing and acquiring biomedical assets across the healthcare spectrum. QBIO is dedicated to providing these target assets the strategic resources, developmental support, and expansion capital the need to ensure they meet their developmental potential, enabling them to provide products to patients in need.
According to company materials, QBIO “is a biomedical acceleration and development company. We are focused on licensing and acquiring biomedical assets across the healthcare spectrum. Q is dedicated to providing these target assets the strategic resources, developmental support, and expansion capital the need to ensure they meet their developmental potential, enabling them to provide products to patients in need.”
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As noted above, the stock just broke out of a recent trading range, helped along by a recent funding deal.
The conversion of that exposure was slated on the deal for whatever level ends up being more advantageous for Yorkshire between $4.00 or a 7% discount to market, with a floor price of $2.00.
Q BioMed Inc. CEO, Denis Corin said, “We are very pleased to partner with Yorkville at this very exciting time in our evolution. Having a revenue ready drug in hand with the capital to execute on the production, manufacturing and roll out of the drug provides a real catalyst for Q BioMed. In addition to the near term revenue, we see significant upside in both the treatment of metastatic bone cancer (palliation) with our Strontium Chloride 89 radiopharmaceutical (“SR89″) as well as the continued development of the Man-01 glaucoma drug.”
The key asset here in question is SR89, which is indicated for the treatment of pain associated with metastatic bone cancer. The generic radiopharmaceutical provides long-lasting relief for patients suffering from debilitating bone pain due to metastatic cancer, typically caused by advanced-stage breast, prostate or lung cancer. It has been proven to provide a long-term effect resulting in non–narcotic cancer pain relief and enhanced quality of life.
According to a recent release “There are approximately 350,000 cases of patients living with bone metastases in the US alone. An additional 380,000 new diagnoses of patients with breast and lung cancer per year and approximately 1 in 3 of those will develop bone metastases. Approximately 80% of patients using SR89 have reported experiencing a substantial decrease in pain, an increase in physical activity and a reduction in the need for opiate analgesics, such as morphine. This represents a very significant market and an opportunity to bring an effective and much-needed product to many patients in need.”
Traders will note 66% added to share values of the company over the past month of action. What’s more, the company has witnessed a pop in interest, as transaction volume levels have recently pushed 67% beyond what we have been seeing over the larger time frame. It pays to take note of this fact due to the very limited float size in the stock (of 5.3M shares). It’s something the veterans know to key on: ramping trading activity can overwhelm available supply in a stock with this type of small float, leading to an upward burst in prices.
Currently trading at a market capitalization of $37.8M, QBIO has a decent store ($137.99k) of cash on the books, in a pool of total assets just shy of $150K, which must be weighed relative to an appreciable load ($1.26M) of total accumulated debt.
The small float is key here. The recent technical breakout on such a low float may represent a real opportunity here. Interested players can simply stop out on a re-entry into the prior range. We will update the story again soon. For continuing coverage on shares of $QBIO stock, as well as our other hot stock picks, sign up for our free newsletter today and get our next hot stock pick!