InMed Pharmaceuticals Inc (INM)

[lesgetrich]

The September 30, 2018 financials show $7.3 million in short term investments. It later describes these as follows...

InMed 9/30/18 Financials

As at September 30, 2018, the Company held short-term investments in the form of a fixed rate guaranteed investment certificate, with terms of 6 to 12 months, with a face value of $7,300,000 (June 30, 2018 - $2,300,000) and variable rate guaranteed investment certificates, with one year terms, with face value of $57,500 (June 30, 2018 - $28,750). The Company’s current policy is to invest excess cash in guaranteed investment certificates or
interest bearing accounts of major Canadian chartered banks or credit unions with comparable credit ratings. The Company regularly monitors compliance to its cash management policy.

So they are taking their cash and investing it in short term CD type bank notes. During the quarter it also shows cash flows from short-term investments of $5.03 million which I interpret them as cashing in prior or expired CD's.

It would be pretty normal for any company with cash that would be needed for operations during the year to invest them in a short term bank note (you can't just put it under the CEO's bed LOL).