Quantum BioPharma Ltd. (NASDAQ: QNTM) announced on June 27, 2025, that it is completing a non-brokered private placement of class A multiple voting shares at $50 per share, raising aggregate gross proceeds of up to $600. The biopharmaceutical company, which focuses on developing innovative treatments for neurodegenerative and metabolic disorders, expects the entire offering to be subscribed by existing shareholders.
Financing Structure and Regulatory Compliance
The private placement will be fully subscribed by two insider entities: Xorax Family Trust, where CEO and Co-Chairman Zeeshan Saeed serves as a beneficiary, and Fortius Research and Trading Corp., directed by company director Anthony Durkacz. This insider participation constitutes a related-party transaction under Multilateral Instrument 61-101, though the company has secured exemptions from formal valuation and minority shareholder approval requirements since the transaction value remains below 25% of the company's market capitalization.
All securities issued through the offering are subject to a statutory hold period of four months plus one day from issuance, in accordance with Canadian securities laws. The company intends to use the proceeds for general working capital purposes to support its ongoing operations and development programs.
Lead Compound Development
Through its wholly owned subsidiary Lucid Psycheceuticals Inc., Quantum BioPharma is advancing its lead compound Lucid-MS, a patented new chemical entity designed to address multiple sclerosis. In preclinical models, Lucid-MS has demonstrated the ability to prevent and reverse myelin degradation, which represents the underlying mechanism of multiple sclerosis progression.
The company's therapeutic focus extends beyond neurological disorders to include treatments for metabolic disorders and alcohol misuse disorders, with drug candidates currently in various stages of development across its pipeline.
Strategic Investments and Revenue Streams
Quantum BioPharma maintains diversified revenue streams through strategic partnerships and investments. The company retains a 20.11% ownership stake in Unbuzzd Wellness Inc. (formerly Celly Nutrition Corp.) as of March 31, 2025, following the spin-out of its unbuzzd™ over-the-counter product.
Under the agreement with Unbuzzd Wellness Inc., Quantum BioPharma receives 7% royalty payments on sales until total payments reach $250 million, after which the royalty rate decreases to 3% in perpetuity. The company maintains 100% rights to develop similar products or alternative formulations specifically for pharmaceutical and medical applications.
Additionally, Quantum BioPharma operates a portfolio of strategic investments through its wholly owned subsidiary FSD Strategic Investments Inc., which manages loans secured by residential and commercial properties.
Market Position and Future Outlook
The private placement reflects continued insider confidence in the company's strategic direction and pipeline development. With securities trading on NASDAQ, the Canadian Securities Exchange, and Frankfurt Stock Exchange, Quantum BioPharma maintains broad market access for future financing needs.
The company has filed appropriate material change reports in compliance with regulatory requirements, positioning itself for continued development of its neurodegenerative disorder treatments while maintaining its diversified investment portfolio.
