Interesting day! Insiders hold over 10,000,000 shares or almost 50% of the float or O/S.
Like I mentioned, if it were to run, for whatever reason, it may really pop for that reason.
Still, the company is a complete and absolute disaster.
Camille can also increase the share structure, which I believe he has to anyway, because of obvious reasons. At the moment, all they are doing is awarding themselves shares or buying them up. I am pretty sure they can't sell or use dilution methods, which has substantially hurt their ability to fundraise and secure loans.
The last 10Q did state that SBFM could not get additional funding, according to this November filing:
"We are not generating adequate revenues from our operations to fully implement our business plan as set forth herein. On February 17, 2022, we received net proceeds of approximately $6.8 million from the sale of common stock and warrants in an underwritten public offering. On March 14, 2022, we received net proceeds of approximately $6.8 million from the sale of common stock and warrants in a private placement. On April 28, 2022, we received net proceeds of approximately $16.8 million from the sale of common stock and warrants in a private placement. We believe our existing cash will be sufficient to fund our operations, including general and administrative expenses, expanded research and development activities, and nutritional supplement business, for the next 24 months. There is no assurance our estimates will be accurate. We have no committed sources of capital and we anticipate that we will need to raise additional capital in the future, including for further research and development activities and possibly clinical trials, as well as expansion of our generic pharmaceutical operations arising from the Nora Pharma acquisition. Additional capital may not be available on terms acceptable to us, or at all."
--
Sales/Revenue figures of Nora is about 11M, with a net profit of 350K. That's pathetic. They gave the Nora CEO over 7M shares and over 20M dollars cash. Plus annual increases.
--
Note 9 – Management and Director Compensation
The Company paid its officers cash compensation totaling $595,000 and $105,000 and $1,095,000 and $130,000 for the three and nine month periods ended September 30, 2022 and 2021, respectively. Of these amounts attributable to the Company’s CEO, as of September 30, 2021 $110,000 was paid to Advanomics Corporation, a company controlled by the CEO of the Company. In addition, the Company issued 300,000 shares of common stock valued at $918,000 to its officers during the three months ended September 30, 2021. The value of these shares was based upon the closing price of the Company’s common stock of $3.06 on the issuance date.
The Company paid its directors cash compensation totaling $100,000 and $200,000 for the three and nine month periods ended September 30, 2022 and 2021, respectively.
Note 10 – Subsequent Events
On October 20, 2022, the Company acquired all of the outstanding shares of Nora Pharma Inc., a Canadian generic pharmaceuticals company. The total purchase price of $30,000,000 Canadian (approximately $21,900,000 USD) was paid by paying $20,000,000 Canadian (approximately $14,600,000 USD) in cash, issuing 3,700,000 shares of the Company’s Common Stock valued at $5,000,000 Canadian (approximately $3,650,000 USD), and $5,000,000 Canadian (approximately $3,650,000 USD) which may be paid in the future as an earn-out amount based on target sales. Through the contingent earn-out, the seller, Mr. Malek Chamoun, has the opportunity to earn up to $5,000,000 CAD (approximately $3,650,000 USD) in the form of twenty (20) payments of $250,000 CAD for every $1,000,000 CAD increase in gross sales above Nora Pharma’s June 30, 2022 gross sales, provided that his employment with the Company is not terminated pursuant to the Company’s Employment Agreement with him.
