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.
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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.
