Cannimed Therapeutics Inc. (OTCMKTS:CMMDF) Informs On Q1 2017 Corporate Financing Activities

Cannimed Therapeutics Inc. (OTCMKTS:CMMDF) posted that in the previous quarter, it completed an IPO and in January, the overallotment option for underwriters’ was exercised, driving in total gross proceeds of $69 million.

The highlights

As many as 5.75 million shares were issued at $12/share, pursuant to this Initial Public Offering and the completion of the overallotment option. Common shares of firm commenced trading on the national exchange platform, TSE in the last week of December 2016 under the ticker CMED.

The holders of about $11 million of convertible debentures used their conversion rights in December 2016 and this January, directing the issuance of nearly 2.057 million shares of CanniMed. Subsequent to non-conversion, the debentures of $0.2 million were remaining with interest rate of 12% and 5-years term.

As per the facility deal with lender, the renewal of Cannimed Therapeutics’ Capital Loan, USD Loan and Asset Loan was planned for this November. However, later the lender extended this renewal date of the deal to November 2018.

Expressing views on Non-IFRS Financial Procedures and Reconciliations, the firm posted that it applies non-IFRS financial method as supplemental indicators of fiscal position and operating show. These measures are employed internally by the firm for paralleling actual numbers from one quarter to another.

Cannimed management mentioned that, besides conservative measures set as per IFRS, certain stockholders use this data to measure the firm’s ability and show to generate cash flow. So, such data is prearranged to offer additional info and should not be referred in isolation or as a standby for actions of performance explained in accordance with IFRS.

In the previous trading session, the stock price of Cannimed gained almost 1% to close the day at $6.58. The gains came at a share volume of 663 compared to average share volume of 2,756.