x min read

InMed Pharmaceuticals Inc (OTCMKTS:IMLFF) Rebounds In Style

InMed Pharmaceuticals Inc (OTCMKTS:IMLFF) Rebounds In Style
Written by
Jim Bloom
Published on
March 7, 2018
Copy URL
Share on LinkedIn
Share on Reddit
Share on Twitter/X
Share on Facebook
InsidrFinancial

InMed Pharmaceuticals Inc (OTCMKTS:IMLFF) is still on its way back up. Following the jump in its price to $1.89 and the subsequent fall to $0.73, the firm is making efforts to recover lost ground.In this piece, we give you the details of the firm’s recent activity and what to possibly expect in the near future. Take a look at the stock price action over the last year: IMLFF Daily ChartCompany OverviewInMed Pharmaceuticals, Inc. was established by Craig Schneider and Christopher Bogart in May 1981 and its head office is situated in Vancouver, Canada. The firm operates in the development of cannabinoids drug design platform. Some of its products include the INM-085 for treating as well as the glaucoma INM-750 used in treating epidermolysis bullosa.The company also focuses on the research and development of cannabinoid-based, novel, prescription drug therapies using novel drug delivery systems. It conducts research, clinical, preclinical, regulatory, discovery, commercial development and manufacturing activities for its products. Another major value contributor to the firm is its biosynthesis manufacturing process and its drug development programs.For more information on the company, please check out our previous post here.Recent DevelopmentsBack in January, the firm closed its non-brokered private placement having amassed total proceeds of 9.4 million Canadian dollars after issuing 13.5 million units with the conditions of the issue the same as reported in December 2017. The offering was projected to bring in total proceeds of 2.5 million Canadian dollars.Eric A. Adams, Chief Executive Officer of InMed highlighted that management was thrilled with the very positive feedback from the investment community. He hinted that it was beneficial to the firm to be in a position to close the financing, on an oversubscribed basis, and is such record time as well. With the funds raised, the firm has a much larger balance sheet with which it can to continue to carry out its corporate objectives.Presently, management has considerably increased the intended the cash runway for its lead programs, which are INM-750 for EB and biosynthesis, and would be capable of making major enhancements for both INM-405 for pain and INM-085 for glaucoma. Inmed also plans to utilize some of the funds raised from the placement for its general working capital and corporate purposes. The funds are also expected to contribute to its bid to seek a listing of its common shares on the Toronto Stock Exchange.As announced by IMLFF in January that it would use funds from its private placement to attain a listing on the Toronto Stock Exchange, the company reported in March 2018 that it had gotten conditional approval from the Toronto Stock Exchange to list its common shares on its exchange. The attainment of the Final approval for its listing on the TSX is the depended on InMed’s fulfillment of certain TSX listing requirements as at the TSX –created a deadline of May 29, 2018. The firm anticipates that all of the requirements will be met ahead of the TSX-imposed deadline date. After its listing on the Exchange, the Shares will continue to trade using the symbol 'IN'.Eric Adams added that moving up to the TSX is a major milestone for InMed. The achievement facilitates the corporate objective of becoming a market leader in a high-growth sector. The firm just happens to be one of the very few pure-play cannabinoid biopharmaceutical companies to trade on one of the world's major stock exchanges.As required during the listing process for Common Shares on the TSX, InMed intends to apply to the Canadian Stock Exchange to willingly delist the Common Shares from the CSE. The removal will be in effect right from the date the common shares start trading on the TSX.Financial PerformanceFor 2017, there were no revenues reported, a trend which has continued for well over the past three years. It is expected that in years to come, the firm will move out of this growth phase and generate revenues from the sale of its products.In the same period, operating expenses besides SGA and R&D rose from $67000 to $57000, an indicator that the firm may not have improved its operational efficiency. There was no operating income, rather operating loss for the year was recorded at $3.4 million. It is to be noted that it is a regular trend for developing companies to be unable to generate revenues while still incurring costs in the growth years.Net loss for the year was $3.4 million, an increase from the prior year loss of $1.8 million revealing that the income statement consisted mostly of its operating expenses for the year.The statement of financial position reveals that the firm is not highly geared. On its books, its total debt is worth just $0.28 million, resulting in a low debt-to-equity ratio of 0.05. It also has a very high liquidity ratio of 18.8.1ConclusionIMLFF is surely on the way to success with the level of interest investors and analysts have in the firm.Disclosure: We have no position in IMLFF and have not been compensated for this article.

Discover Hidden Gems

Don't miss the next big opportunity. Subscribe for timely alerts on potential market movers.