Quantum BioPharma Closes Private Placement Offering
Quantum BioPharma (NASDAQ: QNTM) has closed a non-brokered private placement, issuing 6 Class A multiple voting shares at $6.00 each for gross proceeds of $36.00. The offering involved related-party transactions with insiders Xorax Family Trust and Fortius Research and Trading Corp. Following the offering, Xorax now owns 50% of outstanding Class A Shares and 34.28% of voting rights, while Fortius owns 50% of outstanding Class A Shares and 34.06% of voting rights. The company plans to use the proceeds for general working capital purposes. The transaction was exempt from formal valuation and minority shareholder approval requirements under MI 61-101.
Quantum BioPharma (NASDAQ: QNTM) ha concluso un collocamento privato non intermediarato, emettendo 6 azioni di classe A con diritto di voto multiplo al prezzo di $6,00 ciascuna, per un incasso lordo di $36,00. L'offerta ha coinvolto transazioni con parti correlate con gli insider Xorax Family Trust e Fortius Research and Trading Corp. In seguito all'offerta, Xorax detiene ora il 50% delle azioni di classe A in circolazione e il 34,28% dei diritti di voto, mentre Fortius possiede il 50% delle azioni di classe A in circolazione e il 34,06% dei diritti di voto. L'azienda prevede di utilizzare i proventi per scopi generali di capitale di lavoro. La transazione era esente dai requisiti di valutazione formale e di approvazione degli azionisti di minoranza ai sensi della MI 61-101.
Quantum BioPharma (NASDAQ: QNTM) ha cerrado una colocación privada no intermediada, emitiendo 6 acciones de clase A con derecho a voto múltiple a $6.00 cada una, para ingresos brutos de $36.00. La oferta involucró transacciones con partes relacionadas con los insiders Xorax Family Trust y Fortius Research and Trading Corp. Tras la oferta, Xorax ahora posee el 50% de las acciones de clase A en circulación y el 34.28% de los derechos de voto, mientras que Fortius posee el 50% de las acciones de clase A en circulación y el 34.06% de los derechos de voto. La empresa planea utilizar los ingresos para fines generales de capital de trabajo. La transacción estaba exenta de evaluación formal y requisitos de aprobación de accionistas minoritarios según la MI 61-101.
퀀텀 바이오파마(NASDAQ: QNTM)는 브로커가 없는 비공식 사모를 마감하고, 클래스 A 다중 투표 주식 6주를 각각 $6.00에 발행하여 총 $36.00의 수익을 얻었습니다. 이번 공모는 내부자 Xorax 패밀리 트러스트와 Fortius 리서치 및 트레이딩 주식회사와의 관련 당사자 거래를 포함했습니다. 공모 이후 Xorax는 현재 발행된 클래스 A 주식의 50%와 투표권의 34.28%를 소유하고 있습니다, 반면 Fortius는 발행된 클래스 A 주식의 50%와 투표권의 34.06%를 소유하고 있습니다. 회사는 수익을 일반 운영 자본으로 사용할 계획입니다. 이 거래는 MI 61-101에 따라 공식 평가 및 소수 주주 승인 요구 사항에서 면제되었습니다.
Quantum BioPharma (NASDAQ: QNTM) a clôturé un placement privé sans intermédiaire, émettant 6 actions de classe A avec droit de vote multiple au prix de 6,00 $ chacune, pour un produit brut de 36,00 $. L'offre a impliqué des transactions avec des parties liées, y compris les initiés Xorax Family Trust et Fortius Research and Trading Corp. À la suite de l'offre, Xorax détient désormais 50 % des actions de classe A en circulation et 34,28 % des droits de vote, tandis que Fortius possède 50 % des actions de classe A en circulation et 34,06 % des droits de vote. La société prévoit d'utiliser les produits pour des besoins généraux de fonds de roulement. La transaction était exemptée des exigences d'évaluation formelle et d'approbation des actionnaires minoritaires en vertu de la MI 61-101.
Quantum BioPharma (NASDAQ: QNTM) hat eine nicht vermittelte Privatplatzierung abgeschlossen und 6 Aktien der Klasse A mit mehrfachen Stimmrechten zum Preis von jeweils 6,00 $ ausgegeben, was einen Bruttoerlös von 36,00 $ ergibt. Das Angebot beinhaltete Transaktionen mit verbundenen Parteien, darunter die Insider Xorax Family Trust und Fortius Research and Trading Corp. Nach dem Angebot hält Xorax nun 50% der ausgegebenen Aktien der Klasse A und 34,28% der Stimmrechte, während Fortius 50% der ausgegebenen Aktien der Klasse A und 34,06% der Stimmrechte besitzt. Das Unternehmen plant, die Einnahmen für allgemeine Betriebskapitalzwecke zu verwenden. Die Transaktion war von den formalen Bewertungs- und Genehmigungsanforderungen der Minderheitsaktionäre gemäß MI 61-101 befreit.
- Raised additional capital for working capital purposes
- Insiders increased their stake, potentially aligning interests with shareholders
- Minimal capital raised ($36.00) may not significantly impact company operations
- Increased insider control could potentially limit minority shareholder influence
Insights
This private placement, while small in scale (
This consolidation of control could impact decision-making and potentially limit minority shareholder influence. However, the company's use of MI 61-101 exemptions suggests the transaction's value falls below regulatory thresholds. Investors should monitor how this increased insider control affects future corporate governance and strategic decisions.
The company's reliance on exemptions from formal valuation and minority shareholder approval under MI 61-101 raises governance concerns. While technically compliant, this approach sidesteps important safeguards designed to protect minority interests in related-party transactions.
The expedited closing without a timely material change report further diminishes transparency. Investors should scrutinize whether this transaction truly meets the spirit of securities regulations, despite meeting the letter of the law. The significant increase in insider voting control (
Toronto, Ontario--(Newsfile Corp. - September 13, 2024) - Quantum BioPharma Ltd. (NASDAQ: QNTM) (CSE: QNTM) (FSE: 0K9) ("Quantum BioPharma" or the "Company"), a biopharmaceutical company dedicated to building a portfolio of innovative assets and biotech solutions, announces that, further to its press release dated September 6, 2024 (the "September 6th Press Release"), as approved by the shareholders of the Company at the annual general and special meeting of shareholders held on July 22, 2024, the Company has closed a non-brokered private placement and issued 6 class A multiple voting shares of the Company ("Class A Shares") at a price of
MI 61-101 Disclosure
Xorax Family Trust ("Xorax"), a trust of which Zeeshan Saeed, the Chief Executive Officer and Co-Chairman of Quantum BioPharma is a beneficiary, and Fortius Research and Trading Corp. ("Fortius"), a corporation of which Anthony Durkacz, a director of Quantum BioPharma is a director, purchased all the Class A Shares issued pursuant to the Offering. The participation by such insiders is considered a "related-party transaction" within the meaning of Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Company has relied on exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101 contained in respectively, sections 5.5(a) and 5.7(1)(a) of MI 61-101 in respect of related party participation in the Offering as neither the fair market value (as determined under MI 61-101) of the subject matter of, nor the fair market value of the consideration for, the transaction, insofar as it involved the related parties, exceeded
The Company did not file a material change report more than 21 days before the expected closing of the Offering because the details of the participation therein by related parties to the Company were not settled until shortly prior to the closing, and the Company wished to close on an expedited basis for business reasons.
Early Warning Disclosure
This press release is being issued in accordance with the requirements of National Instrument 62-103 - The Early Warning System and Related Take-Over Bid and Insider Reporting Issues ("NI 62-103"), in connection with the filing of the Early Warning Reports by Xorax, whose registered address is 3688 Stratton Woods Court, Mississauga, Ontario, L5L 4V2, and Fortius, whose registered address is 2045 Lakeshore Boulevard West, Suite 3006, Toronto, Ontario M6V 2Z6 (collectively, the "Acquirors") in respect of the Offering of the Company, whose registered address is 55 University Ave., Suite 1003, Toronto, Ontario M5J 2H7.
On September 13, 2024, Xorax acquired 3 Class A Shares at a price of
Following the Offering, Xorax owns 6 Class A Shares and 6,786 class B subordinate voting shares ("Class B Shares") representing
Following the Offering, Xorax, along with its joint actor, Mr. Saeed, owns 6 Class A Shares, 117,201 Class B Shares and 7,692 restricted share units which upon vesting settle into 7,692 Class B Shares, representing
Following the Offering, Fortius owns 6 Class A Shares and 1,632 Class B Shares, representing
Following the Offering, Fortius, along with its joint actors, owns 6 Class A Shares, 105,750 Class B Shares and 7,692 restricted share units which upon vesting settle into 7,692 Class B Shares, representing
The Acquirors acquired the above-noted Class A Shares for investment purposes. In the future, the Acquirors will evaluate their respective investment in the Company from time to time and may, based on such evaluation, market conditions and other circumstances, increase or decrease its shareholdings as circumstances require through market transactions, private agreements, or otherwise.
The Acquirors currently have no plans or intentions which would result in a corporate transaction, a sale or transfer of a material amount of the assets of the Company or any of its subsidiaries, a change in the board of directors or management of the Company, including any plans or intentions to change the number or term of directors or to fill any existing vacancies on the board, a material change in the Company's business or corporate structure, a change in the Company's charter, bylaws or similar instruments or another action which might impede the acquisition of control of Company by any person or company, a class of securities of the Company being delisted from, or ceasing to be authorized to be quoted on, a marketplace, the Company ceasing to be a reporting issuer in any jurisdiction of Canada, a solicitation of proxies from securityholders, or an action similar to any of those enumerated.
Copies of the Early Warning Reports being filed by the Acquirors may be obtained on the Company's SEDAR+ profile or by emailing rehansk@gmail.com or calling 416-786-6063 for Xorax's Early Warning Report, or by emailing anthony@firstrepubliccapital.com or calling 416-720-4360 Fortius' Early Warning.
About Quantum BioPharma
Quantum BioPharma is a biopharmaceutical company dedicated to building a portfolio of innovative assets and biotech solutions for the treatment of challenging neurodegenerative and metabolic disorders and alcohol misuse disorders with drug candidates in different stages of development. Through its wholly owned subsidiary, Lucid Psycheceuticals Inc. ("Lucid"), Quantum BioPharma is focused on the research and development of its lead compound, Lucid-MS (formerly Lucid-21-302) ("Lucid-MS"). Lucid-MS is a patented new chemical entity shown to prevent and reverse myelin degradation, the underlying mechanism of multiple sclerosis, in preclinical models. Quantum BioPharma invented unbuzzd™ and spun it out its OTC version to a company, Celly Nutrition, led by industry veterans. Quantum BioPharma retains ownership of
Forward Looking Information
This press release contains certain "forward-looking statements" within the meaning of Canadian securities law. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, identified by words or phrases such as "believes", "anticipates", "expects", "is expected", "scheduled", "estimates", "pending", "intends", "plans", "forecasts", "targets", or "hopes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "will", "should" "might", "will be taken", or "occur" and similar expressions) are not statements of historical fact and may be forward-looking statements. Forward-looking information herein includes, but is not limited to, statements that address activities, events or developments that the Company expects or anticipates will or may occur in the future.
The Company cautions that forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made, and they involve a number of risks and uncertainties. Consequently, there can be no assurances that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Except to the extent required by applicable securities laws and the policies of the Canadian Securities Exchange, the Company undertakes no obligation to update these forward-looking statements if management's beliefs, estimates or opinions, or other factors, should change.
The reader is urged to refer to additional information relating to Quantum BioPharma, including its annual information form, can be located on the SEDAR+ website at www.sedarplus.ca and on the EDGAR section of the SEC's website at www.sec.gov for a more complete discussion of such risk factors and their potential effects.
Contacts
Quantum BioPharma Ltd.
Zeeshan Saeed, Founder, CEO and Executive Co-Chairman of the Board, Quantum BioPharma Ltd.
Email: info@QuantumBioPharma.com
Telephone: (416) 854-8884
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/223196
FAQ
How much did Quantum BioPharma (QNTM) raise in its recent private placement?
Who were the main participants in Quantum BioPharma's (QNTM) private placement on September 13, 2024?
What is the new voting rights percentage for Xorax Family Trust in Quantum BioPharma (QNTM) after the September 13, 2024 offering?
How does Quantum BioPharma (QNTM) plan to use the proceeds from the September 13, 2024 private placement?
