Telix QSAM Inc (QSAM)

[solong]

$QSAM - letter out from the CEO

https://www.globenewswire.com/news-release/2021/04/19/2212454/0/en/QSAM-Biosciences-Issues-Letter-from-CEO-on-Successful-Achievements-and-Future-Milestones-for-Company.html

Austin, TX, April 19, 2021 (GLOBE NEWSWIRE) -- The Chief Executive Officer of QSAM Biosciences Inc. (OTCQB: QSAM), Douglas Baum, provided the following letter to shareholders today:

Dear Shareholders:

We are pleased to report that 2020 was pivotal year for QSAM Biosciences as we established the foundation for significant advancements in 2021, several of which have already been achieved. We want to take this opportunity to summarize some of the more material items that we believe will help build value for our shareholders in the years ahead, and which are also detailed in our Form 10-K filed with the SEC on April 15, 2021.

During 2020 and the first quarter of 2021 we accomplished the following:

Secured promising drug technology to treat bone cancer: In April 2020, we licensed on a worldwide, exclusive basis a novel and patented radiopharmaceutical called CycloSam®, meant to target cancers that develop in or metastasize to the bone. CycloSam is a significantly improved version of another FDA approved and commercialized radiopharmaceutical developed by the same inventors, but with the possibility of broader commercial indications. Preliminary results of early studies support a potentially favorable safety and efficacy profile of CycloSam. As a result of this, as well as a number of animal studies and one human trial conducted this past summer, and the streamlined manufacturing process that is already in place, we are optimistic about the chances of advancing CycloSam through the FDA process over the coming years.

Established a team of seasoned biotech experts: In November we appointed as our new Executive Chairman, C. Richard Piazza, who has more than 45 years of healthcare experience in both medical devices and pharmaceutical/biotech development and has led several technology companies to market success including numerous FDA approvals in both sectors. The company also appointed me, Douglas Baum, as our new CEO. I personally bring over 28 years of experience in the bioscience and biotech industries, overseeing 15 product approvals through the FDA. In February 2021, we appointed a new independent director, Dr. Charles J. Link Jr., who brings decades of biotech and drug development experience to QSAM, including serving as CEO, CSO, Chairman, and founder of NewLink Genetics, a NASDAQ-listed immunotherapy company focused on developing novel immuno-oncology product candidates.

Completed $2.5 million in new equity funding: In November we commenced our Series B preferred stock offering, and by January 2021 had closed on $2.5 million in funding (inclusive of $156,000 in debt conversion) to support our clinical trials and operations through 2021. In connection with this offering, we also issued short-term warrants that, if exercised, could provide another $2 million in funding around the end of the second quarter of 2021.

Significantly reduced our debt and divested our legacy business: In November we signed a separation agreement which transferred to a related party called Earth Property Holdings (EPH) our soil business and assets in return for the extinguishment of almost $1 million in debt and the conversion into common stock of a $117,000 note. By the end of 2020, we had converted approximately an additional $3.3 million of promissory notes, accrued compensation and other liabilities into common stock; and by March 31, 2021, we had eliminated the remaining amount of approximately $1.5 million in debt, leaving just $35,000 in convertible debentures currently on our books. In connection with the equity raise completed in January, our balance sheet as of the present date has never been stronger.

Building upon this solid foundation, through 2021 we expect to demonstrate advancements from the achievement of several important milestones, including:

Filing and ultimate clearance of our IND with the FDA to start clinical trials with CycloSam;

Dosing of the first patient in the Phase 1 trials with CycloSam;

Announcement of initial Phase 1 results of CycloSam (possibly in 2022);

Expansion of our intellectual property portfolio with newly issued patents;

Possible acquisition of a second radiopharmaceutical asset to expand our product pipeline; and

Adding additional biotech expertise to our team.