$QSAM NEWS OUT —-> QSAM Biosciences Closes Series B Preferred Private Placement; $2.5 Million in New Capital to Fund Upcoming Clinical Trials
1/28/21, 9:00 AM
Austin, Texas, Jan. 28, 2021 (GLOBE NEWSWIRE) -- QSAM Biosciences Inc. (OTCQB: QSAM), a company developing next-generation nuclear medicines for the treatment of cancer and related diseases, announced today the successful closing of its Series B Preferred Stock private placement in the amount of $2.5 million. The offering was led by Checkmate Capital Group, LLC (“Checkmate Capital”), an investment firm based in California focused on biotechnology investments and other technologies.
Proceeds from the Series B offering, which was over-subscribed, are expected to be used primarily to fund the Company’s upcoming clinical trials for its flagship drug candidate Samarium-153-DOTMP (aka CycloSam®). The Company expects to file its IND with the U.S. Food and Drug Administration (“FDA”) later this quarter to commence Phase 1 trials shortly thereafter.
“We are very pleased with the overwhelming interest in our offering, the proceeds from which will go directly into advancing the development of CycloSam. We are focused on several important value creating milestones in 2021, including commencement of clinical trials for CycloSam for indications that include both primary bone cancer, such as osteosarcoma, and secondary bone cancers that metastasize from the breast, lung, prostate and other areas. This funding will go a long way towards achieving these and other strategic goals,” stated Douglas R. Baum, CEO and Co-Founder of QSAM.
“We are delighted to participate in this offering as a leading shareholder of QSAM. We have been impressed with the unique attributes of CycloSam’s radiologic cancer therapy, which, in animal studies, has demonstrated deep bone penetration followed by rapid exit of radioactive content from the body, as was reinforced by an FDA-approved, compassionate-use single human application,” commented Tom Paschall, CEO of Checkmate Capital. “We have been further impressed with QSAM’s team of experts in nuclear medicine as well as the leading oncology centers with which QSAM is partnered.”
The Series B preferred shares are convertible into an aggregate of approximately 16.6 million common shares and have voting rights alongside the common holders based on this conversion amount. Investors in the offering also received six-month, non-registered warrants to purchase an aggregate of up to 5.8 million shares of common stock at $0.35 per share. For its early investment and efforts to support the funding, Checkmate Capital received a 12-month warrant for 475,000 shares at $0.45 per share.
The Company also announced that it has moved its official headquarters from Florida to Austin, Texas.
