FSD Pharma (CSE: HUGE) continued its relentlessly investor-friendly actions last night, after posting financials late in the evening, followed by a twelve AM press release to announce that it would be conducting a raise a penny off its all time low. In total, the company generated just $18,501 in revenue during the quarter – rental income – while managing to blow through over $990,000 in advertising alone.
Total expenses for the quarter consisted of $9.80 million, of which $5.38 million consisted of share based payments. General and administrative expenses were next on the list, at $1.51 million, followed by the aforementioned advertising at $0.99 million. Salaries and wages were the fourth largest expense, at $0.91 million. In total, FSD Pharma lost $14.24 million over the three month period, or $0.01 per share.
Total cash consumed over the quarter amounted to $7.26 million. As of June 30, 2019, FSD had $9.84 million remaining in the till. Which leads us to the next topic of discussion – the raise announced this morning.
FSD Pharma is currently in the process of raising US$5 million, to be used towards the operations of recently acquired Prismic Pharma. With units priced at $0.10 each, approximately 66.33 million shares will be issued in connection with the offering. The kicker, is that despite being a penny off the 52 week low price for the equity, no warrants are being offered with the financing.
As a result, the firm has attempted to round up investor support by indicating that C$1.3 million has already been sourced for funding, of which over C$1.1 million is from members of management. FSD expects the financing to close by the end of September.
FSD Pharma is currently trading at $0.10 on the Canadian Securities Exchange.
Information for this briefing was found via Sedar and FSD Pharma. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.