Q BioMed Responds to OTC Markets Request for Clarity on Promotional Activity
New York, New York--(Newsfile Corp. - June 24, 2019) - Q BioMed Inc. (OTCQB: QBIO), is providing this response at the request of the OTC markets inquiry into recent expanded investor awareness activities undertaken by the Company.
As part of the company's effort to bring awareness to our development of several drug candidates to treat a variety of diseases and to highlight the assets in its drug portfolio, the Company's investor relations firm, Cayvan Consulting engaged a new sub-contracted service providers including InvestorsHub (IHub) and ThinkInk Marketing on June 12, 2019, to assist in presenting the Company to a broader audience. The third-party service providers, have several subcontractors providing visibility to their followers and subscribers. The Company first became aware of third-party promotional content on June 20th, 2019. Neither the Company nor any of its officers, directors, management and scientific consultants or controlling shareholders had any editorial input into any of the content created by any third-party providers. While the Company has not seen and cannot validate all claims made by all subcontracted parties, those that have been brought to our attention by OTC Markets do not appear to have any materially false or misleading statements and rely on historical public information, previously made statements, independent analyst reports and Company issued press releases. Any additional exposure has not resulted in any increase in price or trading volume of the company stock which is within our typical trading averages over the last several months.
To our knowledge and after inquiry by management, none of our officers, directors, insiders, control persons or third-party contractors have sold or purchased any shares in the open market in the last 90 days.
The company will no longer allow 3rd party contractors to disseminate any information without prior approval by the Company's counsel.
Over the last 12 months, we have engaged the following firms:
- Cayvan Consulting
- Acorn Management Partners
- Infinite Growth Concepts
- Corporate Profile
- Financial Buzz Media
- Proactive Investors Inc.
- Investing News Network
- Chedwick Marketing
- Landon Capital
- JV Public Relations
- 5W Public Relations
As requested by the OTC Markets, below is a summary of any shares or convertible instruments allowing conversion of equity securities at prices constituting a discount to the current market rate at the time of issuance:
On September 21, 2018, Q BioMed Inc. entered into a securities purchase agreement with an accredited investor (YA II CF, Ltd.) to place convertible debentures with a maturity date of eighteen months after the issuance thereof in the aggregate principal amount of up to $4,000,000. The first closing transaction occurred on September 21, 2018 when we issued a debenture for $2,000,000. The second closing occurred on November 1, 2018 when we issued another debenture for $2,000,000 (collectively, "YA Debentures"). The YA Debentures bear interest at the rate of 5.5% per annum and the Company paid an upfront fee equal to 2.5% of the amount of the debentures, which amount was deducted from the proceeds.
The YA Debentures may be converted at any time on or prior to maturity at the lower of $4.00 or 93% of the average of the four lowest daily volume weighted average price during the 10 consecutive trading days immediately preceding the conversion date, provided that as long as we are not in default under a YA Debenture, the conversion price may never be less than $2.00. An effective registration statement on Form S-1 covers the conversion shares. As of today's date, no conversions have been made and the total $4,000,000 is outstanding.
Q BioMed endeavours to provide accurate updates and relevant information through our news releases. We encourage all investors to do their own due diligence when investing in any stock and suggest that they rely more on Company issued releases and SEC filings rather than any third party source.
About Q BioMed Inc.
Q BioMed aims to accelerate the monetization of biomedical technologies through rapid innovation and collaborative partnerships with industry leading researchers. Q BioMed believes its assets in oncology, vascular disease, and rare orphan diseases address unmet medical needs and large markets. The Company's FDA approved, non-opioid drug Metastron, which relieves cancer bone pain, is expected to begin generating revenues in 2019. Metastron is also approved for sale in 21 other countries. In addition to treating pain, Metastron has shown evidence of treating the cancer itself and extending survival. Q BioMed plans to conduct Phase IV trials to support label extension and cancer survival benefit using Metastron.
For more information please visit www.qbiomed.com.
This press release may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such statements include, but are not limited to, any statements relating to our growth strategy and product development programs and any other statements that are not historical facts. Forward-looking statements are based on management's current expectations and are subject
to risks and uncertainties that could negatively affect our business, operating results, financial condition and stock price. Factors that could cause actual results to differ materially from those currently anticipated are: risks related to our growth strategy; risks relating to the results of research and development activities; our ability to obtain, perform under and maintain financing and strategic agreements and relationships; uncertainties relating to preclinical and clinical testing; our dependence on third-party suppliers; our ability to attract, integrate, and retain key personnel; the early stage of products under development; our need for substantial additional funds; government regulation; patent and intellectual property matters; competition; as well as other risks described in our SEC filings. We expressly disclaim any obligation or undertaking to release publicly any updates or revisions to any forward looking statements contained herein to reflect any change in our expectations or any changes in events, conditions or circumstances on which any such statement is based, except as required by law.
Denis Corin CEO
Q BioMed Inc.
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