FSD Pharma slumps on direct share offering

Quantum Biopharma

16/10/2020 12:59

** U.S.-listed shares of FSD Pharma Inc  HUGE.O  down ~20%
to record low $2.04 premarket as co raises equity
    ** Canadian firm sells ~4.3 mln shares along with warrants
to buy ~3.5 mln shares to investors for $9.5 mln raise
 urn:newsml:reuters.com:*:nBw8lpzRna
    ** Offering prices at $2.20, 14% discount to stock's Thurs
close
    ** 5-yr warrants have exercise price of $2.60
    ** FSD has ~14.7 mln shares outstanding and ~12 mln shares
of free float, per Refinitiv data
    ** Earlier this month, co said US FDA authorized mid-stage
trial of potential COVID-19 drug, and expects to start dosing
patients in Oct  urn:newsml:reuters.com:*:nL4N2GW25Q  urn:newsml:reuters.com:*:nBwbrfpgCa
    ** U.S.-listed shares have lost about half their value YTD

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper.tr.com@reuters.net
lance.tupper@tr.com))